Gartner (IT) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $1.51 billion, down 1.5–2% year-over-year, primarily due to the sale of the Digital Markets business in February 2026; adjusted revenues rose 1.6% as reported.

• Net income increased 5–5.4% to $222.3 million, with diluted EPS rising to $3.18, up 17.3% year-over-year; adjusted EPS was $3.32, up 11.4%.

• Operating income rose 14% to $316.1 million, driven by reduced operating expenses and a $6.1 million gain from the divestiture.

• Free cash flow for the quarter was $371 million, up 28.7% year-over-year; operating cash flow was $391 million, up 24.7%.

• 3.3 million shares repurchased for $535 million in Q1, with repurchase authorization increased by $600 million in April 2026.

Financial highlights

• Insights segment revenue grew 3–3.1% year-over-year to $1.29 billion, with a 78–78.2% contribution margin.

• Conferences revenue increased 7.9–8% to $78–78.3 million, with a 38.8–39% margin; Consulting revenue declined 14.7–15% to $119–119.1 million, margin at 30.9–31%.

• Adjusted EBITDA excluding divested operation rose 5.7% to $395 million; margin improved to 26.5%.

• Contract value at quarter-end was $5.3 billion, up 1% year-over-year and 3.5% excluding U.S. federal government.

• Global Technology Sales CV up 0.4% YoY FX neutral; Global Business Sales CV up 3.2% YoY FX neutral.

Outlook and guidance

• Full-year 2026 consolidated revenue expected at or above $6.405 billion, reflecting 1% FX neutral growth.

• Full-year EBITDA guidance raised to at or above $1.545 billion, with margins at or above 24.1%.

• Adjusted EPS for 2026 expected at or above $13.25, and free cash flow at or above $1.16 billion.

• Guidance based on 69 million fully diluted weighted average shares; FX expected to be a tailwind.

• Expectation to deliver adjusted EPS CAGR above 12% over the next three years.