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Gartner (IT) Q3 2026 Earnings Report
IT Q3 2026 EPS Results
- Actual EPS
- $3.59
- Consensus EPS
- $2.84
- Beat/Miss
- Beat by +$0.75
- One Year Ago EPS
- $2.76
IT Q3 2026 Revenue Results
- Actual Revenue
- $1.50B
- Expected Revenue
- $1.49B
- Beat/Miss
- Beat by +$17.97M
- YoY Revenue Growth
- -1.27%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/03/2026
- Time
- Before Open
- Conference Call
- Tuesday, November 3, 2026
Gartner's next earnings date is estimated for February 9, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was predominantly positive: third-quarter revenue, EBITDA, adjusted EPS, and free cash flow exceeded expectations; contract value growth accelerated for the third consecutive quarter; retention improved; cash generation and capital returns remained strong; and full-year guidance was raised across all key measures. Management also highlighted strong AI demand, conference attendance, client engagement, and progress in the BTI transformation. Offsetting concerns included geopolitical pressure, longer sales cycles, year-over-year declines in GTS and GBS new business, modest Insights revenue growth, and the expectation that ex-Federal contract value growth will not reach 4% by year-end.
For 2026, Gartner now expects revenue at or above $6.405 billion, with FX-neutral growth of 1%; EBITDA at or above $1.615 billion, up $45 million from prior guidance, with full-year margins at or above 25.2%, consistent with 2025, adjusted for the divestiture; adjusted EPS at or above $14.65; and free cash flow at or above $1.235 billion, reflecting a conversion from GAAP net income of 136%, based on 66 million fully diluted weighted average shares outstanding. For Q4, Gartner expects EBITDA at or above $390 million, and it continues to expect adjusted EPS on a three-year compound basis from 2025 above 12%; overall CV growth is expected to continue to accelerate, while ex-Fed CV is unlikely to get to 4% by the end of the year.
- Third-Quarter Results Exceeded ExpectationsThird-quarter revenue, EBITDA, adjusted EPS, and free cash flow were ahead of expectations. Revenue was $1.5 billion, up 2% year over year as reported and 3% FX-neutral; EBITDA was $364 million, up 8% as reported and 7% FX-neutral; adjusted EPS was $3.59, up 30%; and third-quarter free cash flow was $275 million, up 2% year over year.
- Contract Value Growth AcceleratedThird-quarter contract value was $5.3 billion, up 2.5% year over year, an 80 basis point acceleration from the prior quarter, and up about 110 basis points sequentially. Excluding U.S. federal government, contract value growth was 2.8%. Contract value growth accelerated for the third consecutive quarter, while Q3 NCVI dollars increased sequentially in line with historical seasonality.
- Retention and Client Engagement ImprovedWallet retention improved sequentially across both GTS and GBS, with GTS wallet retention at 98% and GBS wallet retention at 99%. In-quarter retention increased year over year, downsell remained relatively stable for the second consecutive quarter, and clients continued to engage at historically strong levels.
- Strong Global Business Sales PerformanceGlobal Business Sales contract value was $1.3 billion, up 1.8% from Q2 and 3.7% year over year. Sales and finance practices grew high single digits, several smaller practices collectively delivered double-digit contract value growth, and core GBS subscription products grew about 7% year over year, with faster growth from offerings for C-level leaders.
- Technology Vendor and Federal Business ProgressGlobal Technology Sales contract value was $4 billion, up almost 1% sequentially and about 2% year over year, representing more than a 90 basis point acceleration from Q2. Excluding U.S. federal business, GTS contract value grew 2.5%. Software and services and small technology vendors grew mid to high-single digits. The U.S. federal business delivered about $15 million of NCVI in Q3 through a mix of returning clients and new clients.
- AI Demand and Gartner's AI Offering Remained StrongAI continued to be the most requested topic across Gartner's client base and the number-one topic for every major role served. Gartner's Insights proactively guide more than 75,000 senior executives on getting value from AI, more than 10,000 CIOs and their teams on implementing AI, and more than 5,000 technology enterprises on building AI strategies. Gartner also reported an uptick in demand from clients seeking help with AI business cases, costs, and benefits after finding AI adoption more difficult than expected.
- BTI Transformation Expanded Insight Coverage and TimelinessThe BTI transformation continued across impact, quantity, timeliness, and client experience. Higher-impact documents increased mid-single digits, total documents continued to grow at double-digit rates, and Insights produced immediately after important events increased significantly. Gartner also expanded faster content types, moved training cycles for client-facing associates from monthly to weekly, and developed processes for quicker analyst consultations.
- Improved Digital Engagement and Client ExperienceMobile engagement increased year over year after improvements to usability, response times, audio features, and embedded AskGartner capabilities. AskGartner usage continued to increase sequentially and year over year. Gartner also continued enhancing its mobile app, website, and proactive client engagement.
- Conference Attendance and Revenue GrowthGartner hosted more than 50 technology and business conferences annually. The Orlando IT Symposium/Xpo hosted more than 7,500 technology leaders, with attendance up double digits year over year and 325 sessions addressing AI. North American HR Symposium/Xpo had increases in both C-level and total attendance. Third-quarter Conferences revenue was $86 million, same-conference revenue growth was around 8% FX-neutral, and contribution margin was 35%.
- Consulting Backlog IncreasedThird-quarter Consulting revenue was $126 million, up 2% year over year as reported and 3% FX-neutral. Consulting contribution margin was 34%, labor-based revenue was $94 million, and backlog at September 30 was $217 million, up about 9% year over year for the second consecutive quarter.
- Strong Cash Flow, Margins, and Capital ReturnsTotal contribution margin was 71%, while Insights contribution margin was 78%, up about 90 basis points year over year. Rolling four-quarter free cash flow was $1.3 billion, up 6% year over year, equal to 20% of reported revenue, 78% of adjusted EBITDA, and 136% of GAAP net income. Rolling four-quarter return on invested capital was 34%. Gartner repurchased $138 million of stock in Q3 and $1.7 billion over the last four quarters, reducing the share count by about 15% year over year.
- Full-Year 2026 Guidance RaisedGartner raised full-year guidance across revenue, EBITDA, adjusted EPS, and free cash flow. Revenue is now expected to be at or above $6.405 billion, with FX-neutral growth of 1%; EBITDA at or above $1.615 billion, $45 million above prior guidance; full-year margins at or above 25.2%; adjusted EPS at or above $14.65; and free cash flow at or above $1.235 billion, reflecting 136% conversion from GAAP net income. Q4 EBITDA is expected to be at or above $390 million.
- Disciplined Pricing and Capital AllocationGartner's standard price increase effective November 2 was closer to the 3% end of its historical 3% to 4% range and was described as broadly non-controversial. The company said it is maintaining standard contract terms and conditions and continues to plan price-sensitive, opportunistic share repurchases alongside strategic value-enhancing tuck-in M&A.
IT Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 09, 2027 | 2026 (Q4) | 3.81- | 3.94 | ― | ― |
| Nov 03, 2026 | 2026 (Q3) | 2.843.59 | 2.76 | 30.07% (+0.83) | |
| Aug 04, 2026 | 2026 (Q2) | 3.764.37 | 3.53 | 23.80% (+0.84) | |
| May 05, 2026 | 2026 (Q1) | 2.953.32 | 2.98 | 11.41% (+0.34) | |
| Feb 03, 2026 | 2025 (Q4) | 3.513.94 | 5.45 | -27.71% (-1.51) | |
| Nov 04, 2025 | 2025 (Q3) | 2.432.76 | 2.5 | 10.40% (+0.26) | |
| Aug 05, 2025 | 2025 (Q2) | 3.313.53 | 3.22 | 9.63% (+0.31) | |
| May 06, 2025 | 2025 (Q1) | 2.722.98 | 2.93 | 1.71% (+0.05) | |
| Feb 04, 2025 | 2024 (Q4) | 3.255.45 | 3.04 | 79.28% (+2.41) | |
| Nov 05, 2024 | 2024 (Q3) | 2.372.50 | 2.56 | -2.34% (-0.06) |
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.
