Key Highlights

  • EPS of USD 3.59 beat the consensus estimate of USD 2.84, while GAAP diluted EPS was USD 3.35.
  • Revenue of USD 1.505 billion topped the consensus estimate of USD 1.49 billion, though it slipped 1% after a divestiture.
  • Operating income reached USD 281.1 million, against USD 86.3 million a year earlier, which carried a USD 150.0 million impairment.
  • Contract value grew 2% to USD 5.34 billion, with Global Business Sales up 4% and Global Technology Sales up 2%.

Gartner, Inc. (NYSE:IT) reported third quarter 2026 revenues of USD 1.505 billion, down 1% from USD 1.524 billion a year earlier but above a consensus estimate of USD 1.49 billion. EPS of USD 3.59 compared with a consensus estimate of USD 2.84, while GAAP diluted EPS was USD 3.35 against USD 0.47 a year earlier. Net Income rose to USD 214.4 million from USD 35.4 million, and the company attributed the increase mainly to a USD 150.0 million Goodwill Impairment recorded in the prior year quarter. Diluted weighted average shares fell to 63.9 million from 75.0 million.

Insights and Conferences Offset the Divested Business

Insights Revenue rose 2% to USD 1.292 billion with gross contribution of USD 1.003 billion at a 78% margin, up from 77%. Conferences revenue rose 15% to USD 86.0 million on 13 destination conferences against 10, though segment Margin eased to 35% from 37%. Consulting revenue rose 2% to USD 126.4 million and its gross contribution margin widened to 34% from 29%. The Other segment, which consisted of the Digital Markets business sold in February 2026 for about USD 99.8 million, contributed USD 55.2 million in the prior year quarter and nothing this year. Cost of services and product development fell 9% to USD 433.1 million, and Insights personnel expense fell 3% on lower average headcount.

Retention, Financing and Stated Risks

Contract value stood at USD 5.34 billion, with client retention at 85% for Global Technology Sales against 84%, and at 87% for Global Business Sales, unchanged. Global Business Sales wallet retention was 99% against 102%, which the company tied to lower spending by existing clients. Senior notes outstanding total USD 3.0 billion across five maturities from 2028 to 2035, the revolving Credit Facility had about USD 1.0 billion of capacity, and cash and equivalents stood at USD 1.633 billion. Net interest expense rose to USD 23.6 million from USD 16.3 million. The company said growth in contract value signals the health of its subscription business and noted that cash interest payments rose by about USD 37.0 million over nine months.

Buybacks, Cash Flow and Segment Measures Against Prior Periods

Cash paid for share repurchases totaled USD 138.2 million in the quarter and USD 1.220 billion over nine months, against USD 1.493 billion a year earlier, leaving USD 1.1 billion under the authorization. Operating Cash Flow was USD 1.084 billion over nine months against USD 995.8 million, and cash fell from USD 1.723 billion at year end 2025. Global Business Sales contract value of USD 1.307 billion compares with USD 1.260 billion, and Global Technology Sales contract value of USD 4.033 billion compares with USD 3.951 billion. Destination conference attendees numbered 13,575 against 11,454, and the stockholders Deficit stood at USD 34.7 million.