IT — Gartner, Inc.

Gartner Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Revenue: $1.5 billion, up 2% year-over-year, down 1% FX neutral.
• Adjusted EBITDA: $395 million, up 6% as reported, 1% FX neutral.
• Adjusted EPS: $3.32, up 11% from Q1 2025.
• Free Cash Flow: $371 million, up 29% year-over-year.
• Contract Value (CV): $5.3 billion, up 1% year-over-year; excluding U.S. federal government, CV growth was 3.5%.
• Contribution Margin: 72% overall, with Insights at 78%.
• Share Repurchase: $535 million, reducing share count by 4%.

2. Strategic Updates and Business Highlights:

• Strong new business growth in January and February, with some slowdown in March due to geopolitical factors.
• Transformation efforts in the business and technology insights organization are ongoing, focusing on impact, volume, timeliness, and user experience.
• Increased engagement metrics: license user engagement levels are at their highest in three years, with improvements in both digital and human interactions.
• AI remains a key focus area, with Gartner positioned to provide comprehensive guidance on AI-related issues.
• Continued emphasis on retaining clients through enhanced engagement and insights.

3. Forward Guidance and Outlook:

• Expecting contract value growth to accelerate throughout 2026.
• Updated full-year guidance: revenue at or above $6.405 billion, EBITDA at or above $1.545 billion, and adjusted EPS at or above $13.25.
• Anticipating free cash flow at or above $1.16 billion, reflecting strong conversion rates.
• Projecting adjusted EPS growth of over 12% annually over the next three years.

4. Bad News, Challenges, or Points of Concern:

• March saw a slowdown in client decision-making, particularly in industries like airlines and financial services, attributed to geopolitical uncertainties.
• New business sales were down 4% year-over-year in Global Technology Sales, with similar trends in Global Business Sales.
• Client retention metrics showed a slight decline, though wallet retention improved, indicating a mixed performance in client engagement.
• The U.S. federal government business continues to be a headwind, contributing a 250-basis-point impact on CV growth.

5. Notable Q&A Insights:

• Clients expressed a desire to continue purchasing from Gartner but faced delays in decision-making during March.
• Engagement with the AskGartner tool is increasing, with frequent updates and enhancements being made.
• Pricing remains stable; clients are generally satisfied with current pricing levels, and no significant discounts are being offered.
• The company is focusing on hiring more new business developers while maintaining account management roles to support growth.
• The overall selling environment is expected to improve as the year progresses, although decision cycles may remain longer due to ongoing uncertainties.

This summary encapsulates Gartner's financial performance, strategic initiatives, and outlook while addressing challenges and insights from the Q&A session, providing a comprehensive overview of the company's current position and future direction.