Q1 26 EPS
$3.32
BEAT +13.64%
Est. $2.92
Q1 26 Revenue
$1.51B
MISS 0.28%
Est. $1.52B
vs S&P Since Q1 26
-15.8%
TRAILING MARKET
IT -12.7% vs S&P +3.2%
Market Reaction
Did IT Beat Earnings? Q1 2026 Results
Gartner delivered a sharply profitable first quarter for fiscal 2026, posting adjusted EPS of $3.32 against a consensus estimate of $2.92, a beat of 13.64%, even as GAAP revenue of $1.51 billion slipped 1.5% year-over-year and came in fractionally be… Read more Gartner delivered a sharply profitable first quarter for fiscal 2026, posting adjusted EPS of $3.32 against a consensus estimate of $2.92, a beat of 13.64%, even as GAAP revenue of $1.51 billion slipped 1.5% year-over-year and came in fractionally below the $1.52 billion Wall Street had anticipated. The top-line softness was largely a story of divestitures rather than demand weakness; the February 2026 sale of Gartner's Digital Markets operation reduced reported revenue comparisons meaningfully, with that segment contributing just $19 million in the quarter versus $66 million a year ago. Strip out the divested business, and underlying revenue grew 1.6% as reported, though foreign currency headwinds pushed the FX-neutral figure to a modest decline of 1.4%. Profitability held firm, supported by lower cost of services and aggressive share repurchases that reduced the diluted share count to 70 million from 77.8 million a year ago. Contract Value, the key subscription health metric, reached $5.30 billion, growing 1.0% on an FX-neutral basis. Patient investors may need time to see the full payoff, but management's decision to raise full-year guidance for adjusted EBITDA, adjusted EPS, and free cash flow signals confidence in the underlying trajectory.
Key Takeaways
- • Contract Value acceleration, growing 1.0% FX neutral to $5.3 billion
- • Insights revenue growth of 3.1% driven by subscription renewals
- • Aggressive share repurchase activity reducing diluted share count from 77.8M to 70.0M
- • Operating cash flow growth of 24.7% and free cash flow growth of 28.7%
- • Gain from sale of divested Digital Markets operation in February 2026
IT Forward Guidance & Outlook
Gartner raised its full-year 2026 guidance for Adjusted EBITDA excluding divested operation, Adjusted EPS, and free cash flow. Detailed updated outlook figures are available in the earnings supplement on the company's Investor Relations website.
IT YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
IT Revenue by Segment
With YoY comparisons, source: SEC Filings
“Contract Value accelerated in the quarter. Insights revenue, Adjusted EBITDA excluding divested operation, Adjusted EPS, and free cash flow were ahead of expectations. We repurchased $535 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.”
— Gene Hall, Q1 2026 Earnings Press Release
IT Earnings Trends
IT vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
IT EPS Trend
Earnings per share: estimate vs actual
IT Revenue Trend
Quarterly revenue: estimate vs actual
IT Quarterly Results
7 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $2.92 | $3.32 | +13.64% | $1.51B | -0.28% |
| Q4 25 BEAT FY | $3.51 | $3.94 | +12.21% | $1.75B | +0.21% |
| FY Full Year | — | $13.17 | — | $6.50B | — |
| Q3 25 BEAT | $2.43 | $2.76 | +13.73% | $1.52B | +0.23% |
| Q2 25 BEAT | $3.31 | $3.53 | +6.80% | $1.69B | +0.74% |
| Q1 25 BEAT | $2.72 | $2.98 | +9.71% | $1.53B | -0.05% |
| Q4 24 BEAT FY | $3.26 | $5.45 | +67.22% | $1.72B | +1.46% |
| FY Full Year | — | $14.09 | — | $6.30B | — |
| Q3 24 BEAT | $2.38 | $2.50 | +5.04% | $1.48B | +0.62% |