Gartner Q3 2026 Earnings: Adjusted Revenue Grew Despite a GAAP Decline

Gartner (NYSE: IT) reported third-quarter 2026 revenue of $1.505 billion for the quarter ended September 30, down 1.3% from $1.524 billion a year earlier, while diluted EPS increased to $3.35 from $0.47. Adjusted revenue rose 2.4%, adjusted EBITDA excluding the divested operation grew 7.5%, and free cash flow increased 2.2%. The divergence between GAAP revenue and adjusted results primarily reflects the Digital Markets divestiture, while the sharp GAAP profit increase was amplified by impairment and restructuring charges recorded a year ago.

Core Financial Results

Gartner’s reported revenue declined because the prior-year quarter included $55 million from the divested Digital Markets operation. Excluding that business, adjusted revenue increased from $1.469 billion to $1.505 billion, representing 2.4% reported growth and 2.6% growth on an FX-neutral basis.

Underlying profitability improved, but the GAAP comparison was affected substantially by prior-year charges. Adjusted EPS rose 30.1%, while adjusted EBITDA excluding the divested operation increased 7.5%.

Business and Segment Performance

All three operating segments generated revenue growth, although their growth rates and contribution trends differed.

• Insights: Revenue increased 1.7% to $1.292 billion, or 1.8% on an FX-neutral basis. Gross contribution rose 2.9% to $1.003 billion, producing a 77.6% contribution margin. As Gartner’s largest segment, its moderate growth remained the main constraint on consolidated expansion.
• Conferences: Revenue rose 15.4% to $86 million, the fastest growth among the three segments. Gross contribution increased at a slower 9.8% to $30 million, with a 34.9% contribution margin.
• Consulting: Revenue grew 2.3% to $126.4 million, or 3.0% on an FX-neutral basis. Gross contribution increased 21.3% to $43 million, the strongest contribution growth among the segments, while the contribution margin was 33.8%.

FX-neutral contract value reached $5.3 billion, increasing 2.5% year over year and 1.1% sequentially. Global Technology Sales contract value rose 2.1% year over year to $4.0 billion, while Global Business Sales grew faster at 3.7% to $1.3 billion.

Divestiture and Prior-Year Impairment Distorted Headline Growth

The 1.3% GAAP revenue decline and 2.4% adjusted revenue increase describe different comparison bases. Q3 2025 included $55 million of revenue from Digital Markets, which Gartner sold in February 2026. Removing that operation reduces the prior-year revenue base to $1.469 billion and shows growth in the remaining business.

The GAAP profit increase was even more affected by unusual prior-year items. Q3 2025 included $154 million of goodwill and other asset impairments, including a $150 million Digital Markets goodwill impairment, as well as $25 million of workforce reduction and other nonrecurring expenses. The comparable 2026 quarter had no impairment charge and only $1 million of workforce reduction and other nonrecurring costs.

Adjusted measures therefore provide a less distorted view: adjusted EBITDA excluding the divested operation increased 7.5%, and adjusted EPS rose 30.1%. EPS also benefited from a lower diluted share count, which fell approximately 14.8% to 63.9 million from 75.0 million.

Profitability and Cash Flow

Adjusted EBITDA margin excluding the divested operation was approximately 24.2%, compared with about 23.1% a year earlier, an expansion of roughly 1.1 percentage points. This indicates that adjusted profit grew faster than the comparable revenue base.

Operating cash flow declined by $5 million to $294 million. Capital expenditures fell to $19 million from $29 million, allowing free cash flow to increase by $6 million to $275 million despite the lower operating cash flow. The quarter’s free cash flow improvement therefore came from reduced capital spending rather than stronger operating cash generation.

Gartner repurchased 0.9 million shares for $138 million during the quarter. Management also reported $1.7 billion of repurchases over the preceding four quarters, contributing to the lower diluted share count, but did not characterize the repurchases as an indication of valuation.

Recent Insider Transactions

The supplied six-month insider data showed 13 purchase transactions involving 8,135 shares and five sales involving 7,082 shares, resulting in a net 1,053 shares purchased. Among the 10 latest entries in the two-year transaction report, five were explicitly identified as sales; entries without a disclosed transaction type or value are excluded below.

These five disclosed sales had a combined reported value of $1,371,008. The transaction data alone does not establish insiders’ views of Gartner’s outlook.

Risks Investors Should Watch

• Moderate growth in the largest business: Insights revenue increased only 1.7%, while FX-neutral Global Technology Sales contract value grew 2.1%. Faster consolidated growth will depend heavily on improvement in these large operations.
• Conference contribution lagged revenue: Conferences revenue rose 15.4%, but gross contribution increased 9.8%. If that gap persists, faster segment growth may not translate into proportional profit growth.
• Free cash flow relied on lower capital spending: Operating cash flow declined, and the increase in free cash flow was supported by a $10 million reduction in capital expenditures. Free cash flow growth could weaken if capital spending rises without better operating cash generation.
• Share repurchases amplified EPS growth: The diluted share count declined approximately 14.8%, helping adjusted EPS grow much faster than adjusted EBITDA. If the repurchase pace changes, future per-share growth may track underlying profit growth more closely.

Summary

Gartner’s Q3 2026 results showed modest growth in the continuing business, improved adjusted profitability, and positive contract value growth across both sales categories. The reported revenue decline reflected the Digital Markets divestiture, while the unusually large GAAP earnings increase was driven partly by the absence of prior-year impairment and restructuring charges and by a lower share count. The main areas to monitor are contract value conversion, growth in the Insights segment, Conference contribution trends, and whether operating cash flow can improve without relying on lower capital expenditures.