Gartner (IT) Q3 2026 earnings summary

Executive summary

• FX-neutral Contract Value reached $5.3B, up 2.5% YoY and 1.1% sequentially; growth accelerated for a third consecutive quarter, with retention improving.

• Q3 Adjusted Revenue, Adjusted EBITDA excluding the divested operation, Adjusted EPS and free cash flow exceeded expectations; FY26 guidance increased for all four.

• Reported revenue fell 1.3% to $1.505B, as segment growth was offset by the Digital Markets divestiture; prior-year net income included a $150M goodwill impairment.

Financial highlights

• Reported revenue was $1,504.8M, down 1.3%; Adjusted Revenue was $1.505B, up 2.4% reported and 2.6% FX-neutral.

• Adjusted EBITDA excluding the divested operation was $364M, up 7.5%; adjusted EPS was $3.59, up 30.1%.

• Net income was $214.4M versus $35.4M; diluted EPS was $3.35 versus $0.47, with the prior-year quarter including a $150M goodwill impairment.

• Free cash flow was $275M, up 2.2%; rolling four-quarter free cash flow was $1.3B, up 6%.

• Consolidated contribution margin was 71.2%; adjusted EBITDA margin was 24.2%, versus 22.8% in Q3 2025.

Outlook and guidance

• FY26 minimum guidance: Adjusted Revenue $6.405B, adjusted EBITDA excluding the divested operation $1.615B, adjusted EPS $14.65 and free cash flow $1.235B.

• Revenue guidance implies 1% FX-neutral growth; EBITDA guidance increased $45M, with a margin outlook of at least 25.2%.

• Segment revenue outlook: Insights $5.180B, Conferences $710M and Consulting $515M; guidance assumes 55 in-person destination conferences.

• Free cash flow guidance reflects 136% conversion from GAAP net income; Q4 EBITDA is expected to be at least $390M.

• October FX rates are expected to provide ~80 bps of revenue growth tailwind and ~150 bps of adjusted EBITDA tailwind; expense plans balance cost management with investment in experts, AI and QBH.