Key Highlights

  • Shares fell USD 41.55, or 17.66%, to USD 193.72 in regular trading on November 3, 2026.
  • Third quarter 2026 adjusted EPS was USD 3.59, up about 30% from USD 2.76 a year earlier.
  • Contract value was USD 5.3 billion, up 2.5% from a year earlier on an FX-neutral basis.
  • Adjusted EBITDA was USD 364 million, compared with USD 339 million a year earlier.
  • Free Cash Flow was USD 275 million in the quarter, and the company repurchased USD 138 million of shares.

What Moved the Shares Today (down USD 41.55, 17.66%)

Gartner (NYSE:IT) fell 17.66% to USD 193.72 in regular trading on November 3, 2026, measured against the November 2, 2026 close of about USD 235.27 (calculated). The decline came on the day the company reported third quarter results, with Volume of 852.96K shares per the screen and a Market Capitalisation of about USD 12.23 billion.

The headline numbers were not weak. Earnings Per Share beat expectations and the full-year outlook went up. The reaction instead appears tied to the pace of growth, since contract value expanded only 2.5% and management said growth excluding United States federal Business was unlikely to reach a 4% exit rate by year end.

The Third Quarter in Detail

Revenue for the quarter ended September 30, 2026 was USD 1.505 billion. That compares with USD 1.524 billion on a reported basis a year earlier, a decline of about 1.3% (calculated), but with USD 1.469 billion once the divested Digital Markets business is excluded, which implies growth of about 2.4% (calculated).

Insights Revenue was USD 1.292 billion, up 1.7%. Conferences revenue was USD 86 million, up 15.4%, and consulting revenue was USD 126.4 million, up 2.3%. GAAP diluted EPS was USD 3.35 against USD 0.47 a year earlier, when the quarter carried USD 154 million of impairments.

Business Background and Recent Updates

Gartner provides research, advisory and conference services to technology, business and Supply chain leaders worldwide.

Global Technology Sales contract value was USD 4.0 billion, up 2.1%, and Global Business Sales contract value was USD 1.3 billion, up 3.7%. On the Earnings Call management cited wallet retention of 98% for the technology unit and 99% for the business unit, and about USD 240 million of new business in the quarter. The company sold Digital Markets in February 2026.

Outlook, Cash and Capital Return

The company raised its 2026 outlook. It now expects revenue at or above USD 6.405 billion, adjusted EBITDA at or above USD 1.615 billion, which is USD 45 million higher than before, adjusted EPS at or above USD 14.65 and free cash flow at or above USD 1.235 billion. Fourth quarter adjusted EBITDA is expected at or above USD 390 million.

Free cash flow was USD 275 million in the third quarter, against USD 269 million a year earlier. Management said cash was about USD 1.6 billion and Debt about USD 3 billion, with gross debt below 2 times trailing EBITDA. The company repurchased 0.9 million shares for USD 138 million in the quarter and about USD 1.7 billion over four quarters, leaving roughly USD 1.1 billion of authorisation. Diluted shares were 63.9 million, down about 14.8% from 75.0 million.

What to Watch Next

Contract value is the key figure. Investors will look for whether growth excluding federal business can climb toward the higher rates management discussed, and whether new business holds near the USD 240 million recorded in the third quarter.

Other items to track include fourth quarter adjusted EBITDA against the USD 390 million floor, the pace of share repurchases after a sharp price decline, and further commentary on how technology spending and federal budgets are affecting subscription demand.