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    IT
    Earnings call· Mar 2026(Q1 FY26)

    GARTNER Q1 FY26 earnings call IT

    May 5, 2026 Source

    Executive summary

    Gartner Q1 FY26 — Strong Q1 Results, Increased Full-Year Guidance, and Accelerated CV Growth Expected

    Gartner delivered a strong Q1 FY26, exceeding expectations across key financial metrics and raising full-year guidance for EBITDA, adjusted EPS, and free cash flow. Despite a slowdown in client decision-making in March due to geopolitical factors, contract value growth accelerated, driven by increased client engagement and strategic investments in insights. The company remains committed to driving future growth through operational efficiencies, share repurchases, and targeted M&A, expecting adjusted EPS to grow above 12% compounded annually over the next three years.

    Highlights

    5

    • Q1 revenue, EBITDA, adjusted EPS, and free cash flow were ahead of expectations, with EBITDA up 6% and adjusted EPS up 11% year-over-year.

    • Full-year EBITDA guidance increased by $30 million to at or above $1.545 billion, and adjusted EPS guidance raised to at or above $13.25.

    • Contract value (CV) grew 1% year-over-year, accelerating from Q4 FY25, with ex-federal CV growing 3.5%.

    • Reduced share count by over 4% in Q1, buying back $535 million of stock, with a new $1.2 billion buyback authorization.

    • Client engagement levels increased, with overall engagement up over 170 basis points year-over-year in Q1.

    Concerns

    3

    • Client decisions slowed somewhat in March due to changes in the geopolitical environment, impacting new business.

    • U.S. federal government business remained a headwind, impacting CV growth by 250 basis points in the quarter.

    • Consulting revenue decreased to $119 million from $140 million in the prior year period, and labor-based revenue was $90 million.

    Guidance & targets

    6
    CategoryTargetConfidence
    Consolidated Revenue
    at or above $6.405 billion
    high materiality
    High
    Adjusted EBITDA
    at or above $1.545 billion
    high materiality
    High
    Adjusted EPS
    at or above $13.25
    high materiality
    High
    Free Cash Flow
    at or above $1.16 billion
    high materiality
    High
    Adjusted EBITDA
    at or above $425 million
    medium materiality
    High
    Adjusted EPS CAGR
    above 12%
    high materiality
    High

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Insights
    Contribution margin up about 120 basis points versus last year. Contract value was $5.3 billion at quarter-end, up 1% YoY and an acceleration from year-end. Ex-U.S. federal government, CV growth was 3.5%.
    FX neutral growth: flat
    		—3% as reported—78% contribution margin
    Conferences
    Held 10 destination conferences in Q1 as planned. Guidance based on 56 in-person destination conferences planned for 2026.
    Same conference revenue growth: ~9% FX neutral
    		$78 million——39% contribution margin
    Consulting
    Backlog at March 31 was $201 million. Prudent view for the balance of the year based on Q1 results.
    Labor-based revenue: $90 million
    		$119 milliondown from $140 million—31% contribution margin
    Contract Optimization
    Revenue is highly variable. Had several very strong years.
    2-year CAGR: up ~15%
    		$147 millionabout flat compared with Q1 2025 (LTM basis)——

    Operational metrics

    36
    Total Contribution Margin
    72%
    Q1 FY26
    Adjusted EBITDA
    $395 millionup 6% as reported, up 1% FX neutral
    Q1 FY26

    Outperformed expectations through effective expense management.

    Adjusted EPS
    $3.32up 11% from Q1 last year
    Q1 FY26
    Return on Invested Capital
    27%
    LTM Q1 FY26
    Total Revenue
    $1.5 billionup 2% as reported, down 1% FX neutral
    Q1 FY26
    U.S. Federal Contract Value
    $114 million
    Q1 FY26

    Bulk of CV in GTS. Expected to be flat in 2026.

    New Business
    more than $200 million
    Q1 FY26

    Seasonally lowest new business quarter. New business dollars increase each quarter through the year.

    Overall Client Engagement
    up over 170 basis pointscompared to prior year quarter
    Q1 FY26

    Consistent improvements in both digital and human interactions.

    Digital Engagement
    more than 160 basis pointsyear-over-year
    Q1 FY26
    Human Interactions Engagement
    more than 80 basis pointsyear-over-year
    Q1 FY26
    GTS Contract Value
    $4 billionup versus prior year
    Q1 FY26

    GTS CV for both enterprise leaders and tech vendors increased by more than 3% year-over-year ex Fed.

    GTS Wallet Retention
    97%
    Q1 FY26
    GTS New Business
    down 4%compared to last year
    Q1 FY26

    Tracking ahead of prior year through February, affected in March by geopolitical environment.

    GBS Contract Value
    $1.3 billionup 3% year-over-year
    Q1 FY26

    Ex-Fed, GBS CV grew 5%. Growth led by sales, supply chain, and legal practices.

    GBS Wallet Retention
    98%
    Q1 FY26
    GBS New Business
    down 2%compared to last year
    Q1 FY26

    Tracking very favorably through February, slowing in March due to client decision-making.

    Fully Diluted Weighted Average Shares Outstanding
    70 millionimprovement of ~8 million shares or ~10% year-over-year
    Q1 FY26
    Fully Diluted Shares Outstanding
    68 million
    Q1 FY26
    Free Cash Flow Conversion
    20%
    LTM Q1 FY26

    Adjusted for several items detailed in earnings supplement.

    Free Cash Flow Conversion
    79%
    LTM Q1 FY26

    Adjusted for several items detailed in earnings supplement.

    Free Cash Flow Conversion
    145%
    LTM Q1 FY26

    Adjusted for several items detailed in earnings supplement.

    Cash and Investments Balance
    $1.7 billion
    Q1 FY26

    Includes $500 million for running the business and $1.2 billion available to deploy.

    Total Debt
    $3 billion
    Q1 FY26
    Gross Debt to Trailing 12-Month EBITDA
    under 2x
    LTM Q1 FY26
    Stock Repurchases
    $535 million
    Q1 FY26
    Buyback Authorization
    about $1.2 billion
    current

    Board expects to refresh the amount as needed.

    Adjusted EBITDA Margin
    at or above 24.1%up from last quarter
    FY26
    Free Cash Flow Conversion
    137%
    FY26
    Fully Diluted Weighted Average Shares Outstanding
    69 million
    FY26

    Incorporates repurchases made through end of Q1.

    2-way conversations with executives
    more than 0.5 million
    annual

    Across every major function and industry.

    Briefings with Technology Providers
    more than 27,000
    annual
    High-Impact Documents
    increased by 22%
    current

    Objective is to ensure insights are on topics clients care about most.

    Insights Library Documents
    up 19%
    current
    Same-Day Published Documents
    more than doubled
    current

    Introduced for important events.

    Gartner Peer Community Executives
    more than 100,000
    current

    From nearly every enterprise function.

    Stock Repurchases
    $2.4 billion - $2.5 billion
    LTM Q1 FY26

    Over the last 12 months.

    Industry KPIs

    3
    MetricValueDetails
    Rpo current rpo$5.3 billionUSD
    Customer logo metrics14,000clients
    Sales capacity productivitylow single-digit growth (GTS), mid-single-digit growth (GBS)%

    Orderbook & backlog

    2
    Contract Value$5.3 billionend of Q1 FY26

    up 1% versus prior year

    Acceleration from year-end. Based on 2026 foreign exchange rates. Ex-U.S. federal government, CV growth was 3.5%.

    Consulting Backlog$201 millionMarch 31

    Product announcements

    1
    ProductTypeDetails
    AskGartnerupdate

    Risks & headwinds

    2
    Client decision-making slowdown due to geopolitical environmentQ1 FY26 (March) and potentially ongoing

    New business with enterprise leaders slowed in March after strong Jan/Feb. Affected deals in April took longer to close.

    Mitigation: Clients still want to buy, but decisions are escalated and take longer. Gartner is adapting sales and service with tools and contracts to succeed in chaotic environments.

    U.S. federal government business underperformanceSince March of last year, expected to be flat in 2026

    250 basis point headwind to CV growth in Q1 FY26. U.S. federal CV at $114 million at March 31.

    Mitigation: Business is rebaselined; expect to lap significant challenges starting in Q2 FY26. Renewing a lot of business and writing new business.

    What to watch in Q2 FY26

    5

    Contract Value (CV) Growth

    Q2 FY26 and beyond
    Current1% year-over-year (total), 3.5% (ex-federal)
    TargetAcceleration over the course of the year

    Why it matters

    CV growth is a key indicator of future revenue and overall business health, especially given the expectation for reacceleration.

    Looking ahead to the rest of the year, we expect contract value will accelerate.

    Q&A highlights

    5

    Did the geopolitical slowdown in March continue into April, and how is the mix of new business evolving?

    Gene Hall confirmed that many deals delayed in March due to geopolitical factors actually closed in April. Craig Safian added that the slowdown and subsequent recovery were broad-based across both new logo and existing client upsells.

    “By and large, clients and prospects told us, we still want to buy from you, but we can't make a decision today. To your point, as a role to April, we're seeing many of those deals actually closed where clients delayed in March, but actually be came through and closed in April.”

    asked by Jeffrey Meuler · answered by Eugene Hall

    2 min read5 chapters

    Detailed Narrative

    01

    Client Engagement and Insights Transformation

    Gartner is actively transforming its business and technology insights organization to drive increased client engagement. Key dimensions include increasing high-impact documents by 22%, growing the insights library by 19%, and improving timeliness with same-day publications more than doubling. These efforts are expected to lead to higher retention and new business growth by providing more relevant and timely information to clients.

    02

    AI Strategy and Positioning

    AI remains a top requested topic across all client roles, positioning Gartner as a leading guide for executives on AI strategy, ROI, ethics, governance, and workforce readiness. The company leverages its proprietary data and analyst expertise to provide independent and objective guidance on AI journeys, while also being a world-class internal user of AI. This dual approach aims to solidify its authority in the rapidly evolving AI landscape.

    03

    Impact of Geopolitical Environment

    New business in January and February was strong, but client decisions slowed in March due to geopolitical uncertainties. This led to longer sales cycles and increased escalation to senior leadership for deal approvals, particularly in affected industries and geographies like financial institutions and GCC countries. However, many delayed deals from March closed in April, indicating continued underlying demand despite extended timelines.

    04

    Sales Force Strategy and Productivity

    Gartner aims for low single-digit headcount growth for GTS and mid-single digits for GBS, with a strategic bias towards hiring incremental new business developers over account managers. This approach is designed to capture the large addressable market of 140,000 potential enterprise clients, of which Gartner currently serves 14,000. The company is also driving productivity from existing account management teams by adding incremental clients to their territories and dynamically adjusting territories based on demand.

    05

    Cost Management and Margin Expansion

    The company is focused on effective expense management, continuous innovation, and operational efficiencies to deliver on profitability commitments. Investments are strategically directed towards areas like analyst teams and quota-bearing headcount (QBH) that drive long-term growth. Other areas are optimized for efficiency, leveraging AI and process improvements, to support overall margin expansion and ensure resources are allocated to value-driving initiatives.

    AI-generated summary of the company’s earnings call. Not investment advice.