Gartner beats Q1 Adj. EPS estimates, raises FY outlook

Gartner

05/05/2026 11:12

Overview

US business insights provider's Q1 revenue declined and missed analyst expectations

Adjusted EPS for Q1 rose and beat analyst expectations

Company repurchased $535 mln shares and increased buyback authorization by $600 mln

Outlook

Gartner raises full-year guidance for adj EBITDA excluding divested operation, adj EPS, free cash flow

Result Drivers

INSIGHTS GROWTH - Insights segment revenue grew 3.1% as reported, driven by continued demand for business and technology research

CONSULTING DECLINE - Consulting segment revenue fell 14.7% as reported, weighing on overall revenue performance

CONTRACT VALUE - Company said contract value accelerated in the quarter, with GBS contract value up 3.2% FX neutral and GTS contract value up 0.4% FX neutral

Company press release: ID:nBw2cvmW7a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$1.50 bln
$1.52 bln (12 Analysts)
Q1 Adjusted EPS
Beat
$3.32
$2.91 (14 Analysts)
Q1 EPS
$3.18
Q1 Net Income
$222 mln
Q1 Operating Cash Flow
$391 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the it services & consulting peer group is "buy."

Wall Street's median 12-month price target for Gartner Inc is $170.50, about 15.4% above its May 4 closing price of $147.71

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 15 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)