GET DAILY SIGNALSGartner (IT) Reports Q3 2026 Earnings: +30% EPS Growth and Guidance Raise
Key Takeaways
- Gartner reported third-quarter 2026 revenue of $1.50 billion, with adjusted revenue up 2.4% as reported and 2.6% on a foreign-currency-neutral (FX-neutral) basis.
- Adjusted earnings per share (EPS) came in at $3.59, up 30% from a year earlier and well above the consensus estimate of roughly $2.84–$2.86.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) excluding the divested operation reached $364 million, beating expectations with a 24.2% margin.
- Contract value (CV) climbed to $5.3 billion, up 2.5% year over year, marking a third consecutive quarter of accelerating growth.
- Management raised full-year 2026 guidance across adjusted revenue, adjusted EBITDA, adjusted EPS, and free cash flow.
- The company repurchased $1.7 billion of stock over the past four quarters, including $138 million in the third quarter.
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Earnings Context and Why It Matters
Gartner’s quarterly results matter because contract value is the clearest leading indicator of its future subscription revenue, and that metric has now accelerated for three straight quarters. As the world’s largest research and advisory firm, Gartner’s performance offers a window into enterprise technology spending and executive confidence amid tariff-driven budget constraints. I’m watching retention rates closely, since improvements there directly feed contract value and long-term profitability. The quarter’s combination of rising contract value, expanding margins, and a reduced share count helped drive a sharp gain in adjusted EPS even as reported revenue dipped slightly year over year, underscoring the durability of the company’s subscription-based model.
Reported Results
For the quarter ended September 30, 2026, IT reported total revenue of $1.50 billion, a decline of about 1.2% year over year as reported, though adjusted revenue rose 2.4% as reported and 2.6% on an FX-neutral basis after excluding the divested operation. Adjusted EPS was $3.59, up 30% from $2.76 in the prior-year quarter and well ahead of consensus estimates near $2.84–$2.86. Adjusted EBITDA excluding the divested operation was $364 million, up 8% year over year and above the roughly $327.5 million consensus.
On a GAAP basis, net income was $214.4 million, or $3.35 per diluted share, compared with $35.4 million, or $0.47 per share, a year earlier. Contract value ended the quarter at $5.3 billion, up 2.5% year over year. Free cash flow on a last-twelve-months basis was $1.3 billion. Management also raised full-year guidance, now projecting adjusted EPS at or above $14.65, adjusted revenue at or above $6.405 billion, and adjusted EBITDA excluding the divested operation at or above $1.615 billion. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Market Reaction and Investor Sentiment
IT shares traded modestly lower in pre-market activity on November 3, 2026, dipping roughly 0.6% to near $233.99 despite the top- and bottom-line beats and raised guidance. The muted reaction partly reflects the stock’s underperformance versus the broader market earlier in the year and a cautious sell-side stance heading into the report. Investors appeared to weigh the slight year-over-year decline in reported revenue against the company’s improving contract value trajectory and strong adjusted EPS growth. Sentiment also centered on management’s commentary around retention, the continued normalization of U.S. federal demand, and the cost trajectory tied to ongoing analyst hiring.
Forward Outlook and Key Factors to Monitor
Following this report, the central theme for investors is whether Gartner can sustain its three-quarter streak of contract value acceleration. Contract value remains the most important driver of future revenue, and its 2.5% year-over-year growth—2.8% excluding the U.S. federal business—signals a gradually improving demand environment. Watching wallet retention across both Global Technology Sales (GTS) and Global Business Sales (GBS) will be essential, since higher retention flows directly into contract value growth.
Another factor to monitor is the cost curve. Management continues to hire analysts as part of its business transformation, which is expected to push expenses higher over the next several quarters. While margins expanded in the third quarter, investors will want to see whether that hiring translates into stronger retention and engagement without eroding profitability.
Finally, capital allocation remains a notable tailwind. With $1.7 billion in buybacks over the past year and a share count that has declined meaningfully, Gartner has been boosting per-share results even during a period of slower revenue growth. Upcoming catalysts include further evidence on new business growth, the pace of U.S. federal recovery, and the company’s ability to hit its newly raised full-year guidance across revenue, adjusted EBITDA, adjusted EPS, and free cash flow.
Exploring AI-Powered Research Tools
In my own workflow, Tickeron’s AI Screener has become a go-to resource for quickly filtering stocks by fundamentals, technical patterns, and AI signals. It helps surface comparable names and momentum ideas around earnings events like this one, allowing me to cross-check ideas without spending hours on manual screens. The tool’s customizable filters make it straightforward to compare IT against peers in the information services space.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for IT turns positive, indicating new upward trend
IT saw its Momentum Indicator move above the 0 level on October 05, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 75 similar instances where the indicator turned positive. In 50 of the 75 cases, the stock moved higher in the following days. The odds of a move higher are at 67%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for IT just turned positive on October 08, 2026. Looking at past instances where IT's MACD turned positive, the stock continued to rise in 23 of 36 cases over the following month. The odds of a continued upward trend are 64%.
Following a +4.53% 3-day Advance, the price is estimated to grow further. Considering data from situations where IT advanced for three days, in 214 of 340 cases, the price rose further within the following month. The odds of a continued upward trend are 63%.
The Aroon Indicator entered an Uptrend today. In 114 of 203 cases where IT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 56%.
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 59%.
IT broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 5 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: IT's P/B Ratio (-88.777) is very low in comparison to the industry average of (2.802). P/E Ratio (21.118) is within average values for comparable stocks, (18.164). Projected Growth (PEG Ratio) (0.737) is also within normal values, averaging (2.284). Dividend Yield (0.000) settles around the average of (0.195) among similar stocks. P/S Ratio (2.103) is also within normal values, averaging (139.965).
The Tickeron SMR rating for this company is 13 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 15 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 36 (best 1 - 100 worst), indicating steady price growth. IT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. IT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
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General Information
a provider of information technology, research and consulting services
Industry InformationTechnologyServices
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