Gartner Inc (IT) · Nov 3, 2026 · Earnings
Beat — Adjusted EPS $3.59 vs ~$2.84 consensus
Gartner’s Q3 earnings beat consensus, with adjusted EPS well ahead and full-year revenue, profit and cash-flow guidance raised.
Gartner is a recurring-revenue research and advisory business trying to turn enterprise demand for AI strategy, risk management and implementation guidance into renewed contract growth. The standing issue is that its underlying revenue growth remains modest even as management has been using margin discipline and heavy buybacks to support earnings; its second-quarter update had already raised several 2026 targets.
The quarter cleared the market’s bar, especially on profit. Adjusted EPS of $3.59 exceeded published consensus of roughly $2.84, while revenue of $1.505 billion edged past consensus near $1.49 billion. That makes this a genuine earnings beat rather than merely a favorable year-over-year comparison. Management explicitly said revenue, adjusted EBITDA excluding the divested operation, adjusted EPS and free cash flow were ahead of expectations. 〔0〕
| Q3 2026 | Q3 2025 | Consensus | |
|---|---|---|---|
| Revenue (Consolidated Results Highlights) | $1,505M | $1,524M | $1,490M |
| Adjusted EPS (Consolidated Results Highlights) | $3.59 | $2.76 | $2.84 |
| Adjusted EBITDA excl. divested operation (Financial Highlights) | $364M | $339M | $327.5M |
| Free cash flow (Cash Flow statement) | $275M | $269M |
The more important signal is the second guidance increase. Gartner raised its full-year adjusted revenue target to at least $6.405 billion from at least $6.375 billion, adjusted EBITDA excluding the divested operation to at least $1.615 billion from $1.570 billion, adjusted EPS to at least $14.65 from $14.00, and free cash flow to at least $1.20 billion from $1.15 billion. The filing says management increased revenue, profit and cash-flow guidance across the board. 〔1〕 This strengthens the operating story because it raises the expected 2026 finish instead of simply defending prior targets.
The earnings beat is stronger than the top-line growth, with buybacks amplifying per-share results. Adjusted revenue rose 2.4% year over year after excluding the divested operation, and adjusted EBITDA excluding that business rose 7.5%, but diluted shares fell to 63.9 million from 75.0 million. Gartner also said it repurchased $1.7 billion of stock over the last four quarters. That supports EPS, but it means the 30% adjusted-EPS growth should not be read as equivalent to 30% operating growth.
The underlying business is improving, but not accelerating dramatically. Insights revenue grew 1.7%, Conferences grew 15.4% and Consulting grew 2.3%; operating cash flow declined 1.4%, while free cash flow increased only 2.2%. The result therefore advances Gartner’s story through better execution, margin and capital returns—not through a sharp demand breakout.
Bottom line: Gartner delivered a clear earnings beat and raised every major 2026 target, which materially strengthens the current story. The main limitation is that revenue growth remains modest, so the upside is primarily better execution and per-share economics rather than a fundamental growth reset.
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