$IT · GARTNER INC
Gartner reported Q3 FY2026 results with GAAP diluted EPS of $3.35 and Adjusted EPS of $3.59, up 30.1% YoY. Revenue was $1.505B (-1.3% reported, -1.1% FX neutral), while Adjusted Revenue (excluding divested Digital Markets) grew 2.4%. The company raised full-year 2026 guidance across Revenues, Adjusted EBITDA, Adjusted EPS, and free cash flow.
- Adjusted EPS of $3.59 grew 30.1% YoY vs. $2.76 in Q3 2025
- GAAP net income surged to $214M from $35M, driven by absence of $150M goodwill impairment from prior year
- Total Contract Value FX Neutral reached $5.3B, +2.5% YoY and +1.1% sequentially
- Free cash flow rose 2.2% to $275M; company repurchased 0.9M shares for $138M in the quarter
- Full-year guidance raised for Revenues, Adjusted EBITDA excluding divested operation, Adjusted EPS, and free cash flow
Extended-hours trading shows shares at $220.00, down 6.58% from the regular close of $235.49, despite the earnings beat and guidance raise — suggesting the market may have priced in even stronger results or is reacting to the -1.3% reported revenue decline.
Gartner's 30% Adjusted EPS growth, Contract Value acceleration, and across-the-board guidance raise signal strong execution, yet the extended-hours selloff suggests the market wanted more.
Gartner's 30%+ Adjusted EPS growth and Contract Value acceleration stand out in the information-services sector, where peers face macro headwinds. The $1.7B in buybacks over four quarters signals aggressive capital return.
Revenue declined 1.3% as reported (-1.1% FX neutral), with the "Other" segment dropping to zero from $55.2M due to the Digital Markets divestiture. Interest expense rose to $23.6M from $16.3M YoY, reflecting higher debt costs.