Q2 2026 Gartner Inc Earnings Call Transcript
Key Points
- Gartner Inc (IT) reported Q2 revenue, EBITDA, adjusted EPS, and free cash flow ahead of expectations, with EBITDA up 6% and adjusted EPS up 24% year-over-year.
- Contract value (CV) growth accelerated to 2% year-over-year, marking the second consecutive quarter of acceleration, with ex-Fed CV growth at 3.3%.
- Client engagement improved significantly, up 140 basis points year-over-year, driven by both digital and human interactions, indicating strong client value delivery.
- The company saw strong performance in key segments: GBS core subscription products grew 7%, conferences revenue increased 12%, and midsized enterprise clients grew mid-single digits.
- Gartner Inc (IT) raised its full-year guidance for EBITDA, adjusted EPS, and free cash flow, and expects adjusted EPS to grow at a compound annual rate above 12% over the next three years.
- The company continues to return significant capital to shareholders, repurchasing $547 million of stock in Q2, reducing share count by 5% sequentially, and increasing the buyback authorization to $1.2 billion.
- Persistent macroeconomic and geopolitical challenges are creating budget pressures, leading executives to scrutinize expenses, escalate approval processes, and delay decisions.
- Total CV growth remains low at 2% year-over-year, reflecting a challenging selling environment, with GBS new business down 5% year-over-year.
- The US federal government business continues to be a drag, with CV of only $125 million and negative impact on overall growth, though it returned to positive net contract value in Q2.
- Consulting revenue declined to $142 million from $156 million in the prior year, though bookings and backlog improved.
- The company faces uncertainty from AI-related reprioritization of client budgets, which could impact spending on Gartner's services, though it also drives demand for AI insights.
- FX headwinds from a stronger US dollar are negatively impacting reported revenue and EBITDA, requiring guidance adjustments.
Good morning, everyone. Welcome to Gartner's second-quarter 2026 earnings call. I'm David Cohen, SVP of Investor Relations. (Operator Instructions) After comments by Gene Hall, Gartner's Chairman and Chief Executive Officer; and Craig Safian, Gartner's Chief Financial Officer, there will be a question-and-answer session. We ask that you limit yourself to one question in order to give all our analysts a chance to participate in the call.
Please be advised that today's conference is being recorded. This call will include a discussion of second quarter 2026 financial results and Gartner's outlook for 2026 as disclosed in today's earnings release and earnings supplement both posted to our website, investor.gartner.com. On the call, unless stated otherwise, all references to revenue are for adjusted revenue and all references to EBITDA are for adjusted EBITDA.
We in each case, excluding the divested operation and with the adjustments as described in our earnings release and supplement. All contract values and associated
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