The revenue decline is structural (divestiture), not operational — core Insights grew 3.1% and CV accelerated. The raised guidance and strong FCF generation are positive signals. Monitor the consulting segment (-14.7%) and FX headwinds (-4.3% on revenue). The $600M incremental buyback authorization signals continued capital return confidence.
Price Chart
Executive Summary
Gartner reported Q1 2026 GAAP diluted EPS of $3.18 (+17.3% YoY) and Adjusted EPS of $3.32 (+11.4% YoY), both ahead of consensus. However, GAAP revenue declined 1.5% YoY to $1.511B due to the divestiture of Digital Markets, while the core Insights segment grew 3.1%. The company raised full-year guidance for Adjusted EBITDA, Adjusted EPS, and free cash flow, and the Board authorized an additional $600M share repurchase.
Key Financial Metrics
Key Facts
- GAAP diluted EPS $3.18, +17.3% YoY; Adjusted EPS $3.32, +11.4% YoY
- GAAP revenue $1.511B, -1.5% as reported, -4.3% FX neutral; adjusted revenue $1.492B, +1.6% as reported
- Net income $222M, +5.4% YoY
- Adjusted EBITDA excluding divested operation $395M, +5.7% as reported, +1.0% FX neutral
- Operating cash flow $391M, +24.7%; free cash flow $371M, +28.7%
- Repurchased 3.3M shares for $535M in Q1; Board authorized additional $600M buyback in April 2026
- Contract Value $5.3B, +1.0% YoY FX neutral (GTS CV $4.0B, +0.4%; GBS CV $1.3B, +3.2%)
- Insights revenue $1.294B, +3.1% as reported; Consulting revenue $119M, -14.7%; Conferences $78M, +7.9%
- Raised full-year 2026 guidance for Adjusted EBITDA ex-divested op, Adjusted EPS, and free cash flow
- Divested Digital Markets in February 2026, removing $19M of revenue in Q1 2026 vs $66M in Q1 2025
Financial Impact
GAAP revenue declined 1.5% YoY to $1.511B due to Digital Markets divestiture; adjusted revenue grew 1.6%. EPS beat consensus by ~11% on an adjusted basis. Free cash flow improved 28.7% to $371M.
Risk Factors
- GAAP revenue decline of 1.5% YoY, even if divestiture-driven, may spook headline-focused investors
- Consulting revenue down 14.7% YoY, indicating potential weakness in advisory demand
- FX headwinds of -4.3% on revenue and -1.4% on adjusted revenue
- Interest expense increased 57% YoY to $21M, reflecting higher leverage from bond issuance
- Share count down 10% YoY (70.0M vs 77.8M diluted), masking underlying earnings growth comparisons
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000749251-26-000165 |
| Document: it-20260430.htm | 0000749251-26-000165 |
| Document: 0000749251-26-000165-index-headers.html | 0000749251-26-000165 |
| Document: 0000749251-26-000165-index.html | 0000749251-26-000165 |
| Document: 0000749251-26-000165.txt | 0000749251-26-000165 |
| 8-K Data (Synthetic) | 0000749251-26-000165 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 12, 2026 7w ago | Insider Cluster | $179.46 $170.62 | ▼ −4.93% | ▼ −3.03% | $186.33 (+3.83%) |
Aug 11, 2026 7w ago | Insider Cluster | $187.27 $169.69 | ▼ −9.39% | ▼ −8.33% | $186.33 (−0.50%) |
Aug 4, 2026 8w ago | 8-K | $185.79 $189.93 | ▲ +2.23% | ▲ +3.47% | $186.33 (+0.29%) |
May 5, 2026 21w ago | 8-K | $148.86 $170.62 | ▲ +14.62% | ▲ +9.67% | $186.33 (+25.18%) |
Apr 15, 2026 24w ago | DEFA14A | $155.32 $144.46 | ▼ −6.99% | ▼ −12.80% | $186.33 (+19.97%) |
US Market Status
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