Gartner tops Q3 profit estimates, but revenue falls short

Gartner (IT) topped third-quarter profit estimates on Nov. 3, while revenue came in slightly below forecast.

Adjusted earnings per share were $3.59 for the three months ended Sept. 30, 2026, ahead of the $2.93 consensus estimate compiled by Finnhub.

Revenue was $1.50 billion, below the $1.53 billion estimate. Revenue fell 1.3% from a year earlier as reported, while adjusted revenue, which excludes a divested operation, rose 2.4%.

Here's how the company did:

• Adjusted EPS: $3.59 vs. $2.76 a year earlier
• Diluted EPS: $3.35 vs. $0.47 a year earlier
• Revenue: $1.50 billion vs. $1.52 billion a year earlier
• Adjusted revenue: $1.50 billion vs. $1.47 billion a year earlier
• Net income: $214 million vs. $35 million a year earlier
• Free cash flow: $275 million vs. $269 million a year earlier

Net income rose to $214 million from $35 million a year earlier. The year-earlier period included a $150 million goodwill impairment related to the Digital Markets operation.

"Contract Value growth accelerated again," said Gene Hall, Gartner's Chairman and Chief Executive Officer. "Revenues, Adjusted EBITDA excluding divested operation, Adjusted EPS, and free cash flow were ahead of expectations."

Segment results

Contract Value, measured in constant currency, reached $5.3 billion, up 1.1% sequentially and 2.5% from a year earlier.

Global Technology Sales Contract Value was $4.0 billion, up 2.1% from a year earlier. Global Business Sales Contract Value rose 3.7% to $1.3 billion.

Insights revenue was $1.29 billion, up 1.7%, with a contribution margin of 77.6%.

Conferences revenue rose 15.4% to $86 million, with a contribution margin of 34.9%.

Consulting revenue rose 2.3% to $126 million, with a contribution margin of 33.8%.

2026 guidance

The company raised its full-year forecasts for revenue, adjusted EBITDA excluding its divested operation, adjusted EPS and free cash flow. Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, excludes items the company treats as outside its core operations.

The company's Digital Markets operation was sold in February 2026. The quarter included a $1.4 million gain from that sale.

Workforce reduction and other non-recurring expenses were $1 million, compared with $25 million a year earlier.

Cash and capital returns

Gartner repurchased 0.9 million common shares for $138 million in the quarter. Hall said the company had repurchased $1.7 billion of stock over the last four quarters.

Operating cash flow was $294 million, down 1.4% from a year earlier. Free cash flow, which is operating cash flow less capital expenditures, was $275 million, up 2.2%.