Gartner Inc
Q2 2026 Earnings
Market Reaction
Did IT Beat Earnings? Q2 2026 Results
Gartner delivered a stronger-than-expected second quarter, with adjusted EPS of $4.37 beating the $3.77 consensus estimate and extending the company's streak of consensus beats to seven consecutive quarters. Reported revenue of $1.68 billion declined 0.6% year-over-year, but that headline figure is misleading; the February 2026 divestiture of its Digital Markets business created a $56.00 million revenue headwind, and stripping out the divested operation, adjusted revenues actually grew 2.8%. Profitability was the cleaner story, with GAAP operating income climbing to $378.50 million from $327.10 million a year ago, aided by leaner SG&A spending and the absence of $22.00 million in workforce reduction charges that weighed on the prior-year period. FX-neutral contract value grew 1.7% to $5.30 billion, a closely watched metric given investor concern over whether Gartner's research business can benefit from the AI spending cycle it actively forecasts for clients. Management raised full-year guidance for adjusted EBITDA, adjusted EPS, and free cash flow, even absorbing headwinds from a stronger dollar.
- Contract Value growth accelerated again, reaching $5.3 billion FX neutral, up 1.7% YoY
- Global Business Sales Contract Value grew 3.3% YoY and 1.2% sequentially
- Conferences revenue surged 15.5% YoY with 59.5% contribution margin
- Insights gross contribution margin expanded to 77.5%
- Lower SG&A and absence of prior-year workforce reduction expenses improved profitability
- Aggressive share repurchases reduced diluted share count from 77.4 million to 66.6 million
“Contract Value growth accelerated again. Revenues, Adjusted EBITDA excluding divested operation, Adjusted EPS, and free cash flow were ahead of expectations. We repurchased $547 million of stock in the quarter, as our capital allocation continues to create value for our shareholders. In addition, we increased our full year Adjusted EBITDA excluding divested operation, Adjusted EPS, and free cash flow guidance even with the stronger dollar.”
Gartner CEO, on the earnings call
Forward Guidance & Outlook
Gartner raised its full-year 2026 guidance for Adjusted EBITDA excluding divested operation, Adjusted EPS, and free cash flow, even with the impact of a stronger dollar. Detailed updated guidance figures are provided in the earnings supplement on the company's Investor Relations website.
IT YoY Financials
IT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.