Gartner Beats Q3 Estimates and Raises 2026 Guidance
Gartner reported third-quarter 2026 adjusted EPS of $3.59 and revenue of $1.51B, exceeding analyst expectations. Adjusted EBITDA increased 7.5% to $364M, while contract value rose 2.5% year over year to $5.3B on an FX-neutral basis. Gartner raised its full-year 2026 targets for adjusted revenue, adjusted EBITDA, adjusted EPS and free cash flow, while repurchasing $138M of stock.
Why it matters
The stronger guidance and contract-value growth improve Gartner's forward outlook, but the reported revenue decline and reliance on buybacks to support per-share earnings led investors to question the quality of growth. Shares fell sharply after the release, making the market reaction negative despite the earnings beat.
Key facts
- 1Gartner's third-quarter adjusted EPS was $3.59, $0.75 above the analyst consensus cited in the report. finance.yahoo.com
- 2Third-quarter adjusted EBITDA excluding divested operations was $364 million, up 7.5% year over year, and free cash flow was $275 million, up 2.2%. finance.yahoo.com
- 3Foreign exchange-neutral contract value reached $5.3 billion, increasing 2.5% from the prior year. finance.yahoo.com
- 4The company raised 2026 adjusted EPS guidance to at least $14.65 from $14.00, adjusted EBITDA guidance to $1.615B from $1.570B, and adjusted revenue guidance to $6.405B from $6.375B. rttnews.com
- 5Gartner repurchased $138 million of shares during the quarter. finance.yahoo.com
Open questions
- Reported year-over-year revenue change is inconsistent across materials: one report states down 0.7%, while others state down 1.3% or down 1.2%.
Summary written by AlphAI AI Desk from 14 of 14 sources. Not investment advice. Figures are as stated by the linked sources.