Gartner’s first quarter results were marked by a modest 1.5% decline in sales year over year, but market reaction was positive due to stronger-than-expected profitability. Management attributed the quarter’s performance to disciplined expense management and improved operating margins, even as new business momentum slowed in March because of geopolitical uncertainty. CEO Eugene Hall highlighted, “New business with enterprise leaders was strong in the first 2 months of the quarter,” but acknowledged that some client decisions were delayed until April. Programs to increase client engagement and retention were credited as supporting stable contract value performance.
Is now the time to buy IT? Find out in our full research report (it’s free for active Edge members).
Gartner (IT) Q1 CY2026 Highlights:
- Revenue: $1.51 billion vs analyst estimates of $1.51 billion (1.5% year-on-year decline, in line)
- Adjusted EPS: $3.32 vs analyst estimates of $2.92 (13.6% beat)
- Adjusted EBITDA: $400.3 million vs analyst estimates of $373.4 million (26.5% margin, 7.2% beat)
- Operating Margin: 20.9%, up from 18.1% in the same quarter last year
- Constant Currency Revenue fell 1.5% year on year (5.7% in the same quarter last year)
- Market Capitalization: $10.3 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are 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 Q1 Earnings Call
- Jeffrey Meuler (Baird) asked about the pace of client decision-making following March’s slowdown. CEO Eugene Hall indicated most delayed deals closed in April, with both new and existing clients contributing to the rebound.
- Faiza Alwy (Deutsche Bank) inquired about regional differences in geopolitical impacts. Hall explained that slowdowns were broad-based but particularly acute in transportation, financial institutions, and Gulf countries.
- Andrew Nicholas (William Blair) queried the timeline for U.S. federal government headwinds to subside. CFO Craig Safian stated that the most significant challenges would be lapped starting in the second quarter, with expectations for stabilization thereafter.
- Toni Kaplan (Morgan Stanley) asked if there were plans to distribute proprietary data via large language models. Hall reaffirmed that Gartner’s differentiated value relies on proactive, tailored insights and human expertise, rather than broad distribution through LLMs.
- Jasper Bibb (Truist Securities) requested clarification on pricing strategy and discounting. Safian confirmed no changes in discounting practices, with normal annual price increases remaining in effect.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be focused on (1) tracking the acceleration of contract value growth, particularly in non-U.S. federal segments and software/services clients, (2) monitoring the effectiveness of new digital engagement and insight delivery initiatives, and (3) assessing whether recent margin improvements can be sustained as the company invests in new business development. We will also watch for stabilization in government business and the impact of ongoing share repurchases.
Gartner currently trades at $153.80, up from $147.71 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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