10-Q · August 4, 2026
Gartner delivered a mixed top line but materially stronger profitability in Q2: revenue declined 1% year over year to $1.676 billion following the Digital Markets sale, while diluted EPS increased 33% to $4.14 and…
Earnings analysis · 10-Q
IT earnings analysis
Filed November 3, 2026 · Our reading of the company's report
The latest report
Gartner delivered a mixed but favorable quarter: revenue was $1,504.8 million, down 1.3% year over year, while GAAP diluted EPS rose to $3.35 from $0.47 and exceeded the $2.84 consensus estimate. Adjusted EPS increased…
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Gartner delivered a mixed but favorable quarter: revenue was $1,504.8 million, down 1.3% year over year, while GAAP diluted EPS rose to $3.35 from $0.47 and exceeded the $2.84 consensus estimate. Adjusted EPS increased 30.1% to $3.59, adjusted revenue rose 2.4%, and full-year 2026 guidance was raised, supporting a bullish outlook. Offsetting concerns include the sequential decline in revenue and free cash flow, $3.0 billion of debt, and foreign-currency exposure affecting $1.6 billion of cash.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.35
What stood out
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Revenue beat estimates
Third-quarter revenue was $1,504.8 million, down 1.3% year over year but above the $1,485.7 million consensus estimate. Adjusted revenue increased 2.4% and Contract Value increased 2.5%.
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Strong year-over-year EPS recovery
GAAP diluted EPS was $3.35, exceeding the $2.84 consensus estimate and rising from $0.47 in the prior-year quarter, although it declined from $4.14 in Q2 2026.
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Adjusted earnings grew 30.1%
Adjusted EPS increased 30.1% to $3.59, indicating substantial underlying earnings growth despite the 1.3% reported revenue decline.
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Free cash flow increased year over year
Free cash flow was $275 million, up 2.2% from $269 million in the prior-year quarter, though down from $378 million in Q2 2026.
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Full-year outlook raised
The company raised full-year 2026 revenue, Adjusted EBITDA excluding the divested operation, Adjusted EPS, and free cash flow guidance; no numerical guidance ranges were disclosed.
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Continued share repurchases
The company repurchased 881,291 shares in the open market during the quarter, leaving $1,145.9 million available under the repurchase authorization at September 30, 2026.
What to watch
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Reported revenue remains pressured
Reported revenue declined 1.3% year over year to $1,504.8 million and declined from $1.68 billion in Q2 2026, indicating sequential volatility despite growth in adjusted revenue and Contract Value.
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Material debt balance
Total debt principal outstanding was $3.0 billion as of September 30, 2026. Although none of the debt used a floating base rate, the debt load remains a material balance-sheet obligation.
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Foreign-exchange exposure
The company held $1.6 billion of cash and cash equivalents, with a substantial portion denominated in foreign currencies; a 10% move in those currencies against the U.S. dollar could change reported cash by approximately $129.4 million.
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Sequential cash-flow decline
Free cash flow declined from $378 million in Q2 2026 to $275 million in Q3 2026, a sequential reduction of approximately $103 million, or 27.2%.
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No material risk-factor changes
The filing states that there were no material changes to the risk factors disclosed in the December 31, 2025 Form 10-K, so no new quarterly risk-factor changes were identified.
Management's outlook
Management raised full-year 2026 revenue, Adjusted EBITDA excluding the divested operation, Adjusted EPS, and free cash flow guidance; the filing does not provide numerical ranges.
Earlier filings 2
10-Q · May 5, 2026
Gartner, Inc. reported total revenues of $1.5 billion for Q1 2026, a decline of 2% from the previous year primarily due to the sale of its Digital Markets business. Net income increased to $222.3 million, with diluted…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.