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EarningsQ2 2026 Earnings Report
IT Q2 2026 EPS Results
Actual EPS$4.37
Consensus EPS$3.76
Beat/MissBeat by +$0.61
One Year Ago EPS$3.53
IT Q2 2026 Revenue Results
Actual Revenue$1.68B
Expected Revenue$1.65B
Beat/MissBeat by +$27.46M
YoY Revenue Growth-0.62%
Earnings Announcement Details
QuarterQ2 2026
Date08/04/2026
TimeBefore Open
Conference CallTuesday, August 4, 2026
IT Upcoming Earnings
Gartner's next earnings date is estimated for November 3, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
IT Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlighted multiple operational and financial positives: revenue, EBITDA, adjusted EPS and free cash flow all beat expectations; client engagement and retention metrics improved; contract value growth accelerated sequentially (including ex-Fed improvement); bookings and backlog showed improvement; margins expanded and management raised full-year guidance while continuing sizable share repurchases. Offsetting these positives are areas of weakness and risk: consulting revenue declined, GBS new business was down year-over-year, contract optimization remains variable, and persistent macro/geopolitical pressures and FX headwinds constrain near-term growth. Overall, the company demonstrated strong execution and momentum with manageable headwinds.Company Guidance
Revenue Beat and Growth
Second quarter revenue of $1.7 billion, up 3% year-over-year reported and up 2% on an FX-neutral basis; results were ahead of expectations.
Strong Profitability and Margins
Adjusted EBITDA of $466 million, up 6% reported (4% FX-neutral); total contribution margin 71%; Insights contribution margin 77%, up ~140 basis points versus prior year.
Significant EPS and Cash Flow Improvement
Adjusted EPS of $4.37, up 24% year-over-year; free cash flow of $378 million in the quarter, up 9% year-over-year; rolling 4-quarter free cash flow $1.3 billion.
Contract Value Acceleration
Total contract value (CV) of $5.3 billion, up 2% year-over-year with a sequential increase of ~30 basis points from Q1 and a 70-basis-point acceleration versus last quarter; ex-Fed CV growth 3.3%.
Customer Engagement and Retention Trends
Client engagement improved meaningfully, up 140 basis points year-over-year (digital engagement +110 bps; human interactions +150 bps); wallet retention improved sequentially and ex-Fed wallet retention was 99%.
Business Segment and End-Market Strengths
Core GBS subscription products grew 7% in the quarter; midsized enterprise clients across GTS and GBS grew mid-single digits year-over-year; conferences revenue $244 million with ~12% same-conference growth (FX-neutral).
Bookings, Backlog and Consulting Momentum
Bookings increased 17% year-over-year; backlog at June 30 was $214 million, up ~9% year-over-year (first YoY backlog increase since Q1 2025); consulting bookings strengthened despite revenue being down vs. prior year.
Capital Deployment and Shareholder Returns
Repurchased $547 million of stock in the quarter (share count down ~5% sequentially and ~14% year-over-year); exited the quarter with roughly $1 billion deployable cash; Board increased buyback authorization to ~$1.2 billion.
Raised Full-Year Outlook
Updated 2026 guidance: revenue at or above $6.375 billion (FX-neutral growth ~1%), EBITDA at or above $1.57 billion (up $40 million operationally), adjusted EPS at or above $14, and free cash flow at or above $1.185 billion.
Return on Invested Capital
Rolling 4-quarter return on invested capital was 31%.
IT Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed