Gartner earnings lift its outlook, but shares fall as contract growth stays modest
Earnings results
- EPS comparison not verified
Actual: $3.59 (adjusted)
- Revenue comparison not verified
Actual: $1.50479 (reported, billions)
- Guidance
Raised full-year 2026 revenue, adjusted EBITDA excluding the divested operation, adjusted EPS and free-cash-flow guidance.
Earnings and the stock move
Gartner released its third-quarter earnings before open on November 3 and raised its full-year revenue, adjusted earnings and free-cash-flow guidance. Shares fell during the subsequent regular session. The report shows an important tension: adjusted profit per share grew 30.1%, while currency-neutral contract value grew 2.5%. Buybacks also reduced the diluted share count from 75.0 million to 63.9 million. In our analysis, renewal strength and growth in subscriptions matter more for durable expansion than per-share improvement from fewer shares alone.
Q3 2026 ended September 30 earnings recap
Gartner raised its full-year outlook after earnings, yet shares fell 19.0% during trading on November 3, 2026. Modest subscription growth remains the key issue for the business.
- Third-quarter revenue was $1.51 billion, down 1.3% from a year earlier. Excluding the Digital Markets business sold in February, revenue grew 2.4%.
- Contract value, the annualized value of subscription commitments, reached $5.3 billion. Growth was 2.5% from a year earlier after removing currency changes.
- Adjusted EPS, or profit per share excluding selected costs, was $3.59. GAAP profit per share was $3.35; last year included a large impairment charge.
- Adjusted net income rose to about $230 million from $207 million. A smaller share count helped adjusted profit per share grow faster, at 30.1%.
- Management raised its full-year sales, adjusted profit and free-cash-flow guidance. Stronger cash generation can support investment and share repurchases.
- Quarterly free cash flow was $275 million, up 2.2%. Gartner bought back about $138 million of shares, so investors should track cash generation alongside those purchases.
Watch whether subscription commitments turn into faster recurring revenue growth. Customer renewals, government budgets and competition from AI tools remain risks.
Financials and technicals
Charts through Nov 2, 2026. The session move above may reflect later news.
Technical setup and risks
The charts show the November 2 close of $235.26, before the earnings release. November 3 trading has moved below the prior $214–$220 trading area. Reclaiming that area on sustained closes would improve the rebound case; continued trading below it would leave the recovery unconfirmed. The prior $234–$238 highs are a further recovery hurdle. These are approximate historical areas, not price targets.
AI-assisted research with source and calculation checks. Prices may be delayed. Technical charts use the stated completed session, which can precede the quoted intraday move. Educational information; investing involves risk.