Latest quarter
Gartner reported Q2 FY2026 revenue of $1.7 billion, compared with the consensus of $1.6 billion, and adjusted EPS of $4.37, compared with the consensus of $3.77. The filing shows revenue of $1.7 billion, down −0.62% from Q2 FY2025, while diluted EPS rose 33.1% to $4.14.
According to the filing, the revenue decline primarily reflected the February 2026 sale of the Digital Markets business. Insights revenue increased 2% and Conferences revenue increased 15%, while Consulting revenue decreased 9%. Gartner attributed the Conferences increase to higher exhibitor and attendee revenue, while it cited lower labor-based consulting revenue for the Consulting decline.
The filing shows gross margin increased to 70.9% from 68.5% and operating margin increased to 22.6% from 19.4%. Gartner reported free cash flow of $378.4 million, up 8.94% from Q2 FY2025.
| Q2 FY2026 | Q2 FY2025 | Change | |
|---|---|---|---|
| Revenue | $1.7 billion | $1.7 billion | −0.62% |
| Diluted EPS | $4.14 | $3.11 | 33.1% |
| Gross margin | 70.9% | 68.5% | 2.5 percentage points |
| Operating margin | 22.6% | 19.4% | 3.2 percentage points |
| Free cash flow | $378.4 million | $347.3 million | 8.94% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $4.37 | $3.77 | Beat by 15.9% |
| Revenue | $1.7 billion | $1.6 billion | Beat by 1.80% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
On Gartner’s Q2 FY2026 earnings call, Chairman and Chief Executive Officer Gene Hall said the selling environment improved during the quarter, with the public sector among the areas that were modestly better. Hall said AI was Gartner’s largest source of client demand and that the company helps clients reprioritize spending to free up funds for AI.
When analysts asked about the selling environment outside the federal business, Hall said conditions were mixed: areas where the macro environment improved had performed well, while areas where it worsened were more challenging. Chief Financial Officer Craig Safian said Gartner expects overall contract-value growth to continue accelerating during the year, with growth excluding the federal business contributing to that acceleration. Safian said the company would not provide contract-value guidance or a medium-term contract-value growth target.
Analysts also asked whether Gartner would add salespeople in the second half. Hall said the company has underutilized sales capacity and intends to add sales headcount when productivity improves; he said the pace would depend on how that productivity improvement develops. Safian said Gartner was managing its operating-expense base to meet profit and free-cash-flow expectations while directing spending toward areas expected to support client value and long-term company value.
On pricing, Hall said Gartner’s core research clients prefer its seat-based contract structure and have not asked for enterprise licenses. In Consulting, Safian said Q2 bookings were high and attributed the quarter’s execution to work on backlog, pipeline generation and converting bookings into future backlog. Hall said Gartner expects contract-value growth to continue accelerating and expects adjusted EPS to grow at a compound annual rate above 12% over the next three years.
Guidance
Gartner’s supplied FY2026 guidance from its Q1 2026 earnings call included revenue of $6.4 billion, EBITDA of $1.5 billion, operating margin of 24.1%, free cash flow of $1.2 billion and EPS of $13.25. On the Q2 FY2026 call, Hall said Gartner expects adjusted EPS to grow at a compound annual rate above 12% over the next three years.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Operating margin | Medium term | 24.1% | — | New |
| Free cash flow | FY2026 | $1.2 billion | — | New |
| EPS | FY2026 | $13.25 | — | New |
| Operating margin | FY2026 | 24.1% | — | New |
| EBITDA | FY2026 | $1.5 billion | — | New |
| Revenue | FY2026 | $6.4 billion | — | New |