Gartner’s second quarter results drew a positive market response, as the company delivered revenue and profit metrics above Wall Street expectations despite flat year-over-year sales. Management pointed to higher client engagement and improved retention rates across both its technology and business segments as key contributors to performance. CEO Eugene Hall highlighted mid-single-digit growth among midsized enterprise clients and noted, “Contract value growth accelerated compared to the first quarter,” emphasizing progress in both government and private sector end markets. The company also benefitted from disciplined expense management, which supported margin expansion.
Is now the time to buy IT? Find out in our full research report (it’s free for active Edge members).
Gartner (IT) Q2 CY2026 Highlights:
- Revenue: $1.68 billion vs analyst estimates of $1.65 billion (flat year on year, 1.8% beat)
- Adjusted EPS: $4.37 vs analyst estimates of $3.73 (17.1% beat)
- Adjusted EBITDA: $466 million vs analyst estimates of $430.1 million (27.8% margin, 8.4% beat)
- Operating Margin: 22.6%, up from 19.4% in the same quarter last year
- Constant Currency Revenue rose 1.6% year on year (4.6% in the same quarter last year)
- Market Capitalization: $12.2 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Gartner’s Q2 Earnings Call
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Faiza Alwy (Deutsche Bank) asked about the shift in messaging toward AI’s impact, with CEO Eugene Hall emphasizing that AI is now the largest source of client demand and is driving increased relevance for Gartner’s services.
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Thomas Roesch (William Blair) inquired about the AskGartner tool’s impact on client renewals. CFO Craig Safian explained that AskGartner is part of a broader push to improve overall digital engagement, which is contributing positively to client experience but is just one aspect of the company’s strategy.
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Jason Haas (Wells Fargo) questioned the likelihood of achieving acceleration in contract value growth for non-federal segments. Safian affirmed that the company expects overall contract value to accelerate, with all segments, including ex-federal, contributing to this trend.
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Jasper Bibb (Truist Securities) asked about sales headcount and productivity. Hall stated that increased productivity from digital transformation would be prioritized before expanding sales staff, indicating operational leverage.
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Toni Kaplan (Morgan Stanley) asked about client tech budget reprioritization toward AI and its impact. Hall clarified that while clients are shifting spend toward AI, Gartner’s services remain a small portion of their budgets, and this trend is increasing demand for Gartner’s insights on AI strategy and implementation.
Catalysts in Upcoming Quarters
In the coming quarters, our analysts will be watching (1) continued growth in AI-driven research demand and its impact on contract value, (2) trends in client engagement and retention as a signal for sustained upsell opportunities, and (3) execution of the BTI transformation to drive productivity and margin improvements. We will also monitor ongoing macroeconomic pressures and the potential for further stabilization in large enterprise spending patterns.
Gartner currently trades at $192.39, up from $151.53 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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