Gartner Lifts 2026 EPS Outlook While Revenue Guidance Edges Lower

Gartner, Inc. IT raised its 2026 profit and cash-flow expectations even as it lowered its adjusted revenue outlook. The divergence shifts investor attention toward cost control, margins and capital allocation.

The key question is whether those levers can keep supporting per-share earnings while top-line growth remains restrained.

Gartner Raises Its 2026 Profit Expectations

Gartner lifted adjusted EPS guidance to at least $14 from $13.25. Adjusted EBITDA excluding the divested operation is now expected to reach at least $1.570 billion, up from $1.545 billion previously.

Free cash flow guidance also increased to at least $1.185 billion from $1.160 billion. The higher targets point to greater confidence in profitability and cash generation despite a more measured revenue outlook.

IT Trims Its Revenue Outlook

Adjusted revenue guidance declined to at least $6.375 billion from $6.405 billion. The Insights revenue outlook also moved lower to at least $5.170 billion from $5.200 billion.

The simultaneous profit upgrade and revenue reduction puts more weight on operating efficiency and business mix. Gartner said expenses reflect agile cost management while it continues investing in experts and artificial intelligence to support future top-line growth.

Gartner’s Q2 Margins Show Why Profits Can Rise

Second-quarter adjusted EBITDA excluding the divested operation increased 6.4% to $466 million. The corresponding margin reached 27.8%, expanding 90 basis points year over year.

GAAP operating income rose to $378.5 million from $327.1 million. Operating margin improved to 22.6% from 19.4%, reinforcing the margin expansion behind the higher full-year profit expectations.

IT’s Segment Mix Creates Both Support and Pressure

Insights revenues rose 2.1% to $1.290 billion, while Conferences revenues increased 15.5% to $244 million. Conferences contribution margin reached 59.5%, up from 57.4% a year earlier.

Consulting revenues fell 8.8% to $142 million and contribution declined 12.6% to $54 million. Forrester Research, Inc. FORR, an independent research and advisory firm, is a relevant peer for the Insights business. Accenture plc ACN, which offers broad consulting and technology services, provides context for Gartner’s Consulting exposure.

Gartner’s Cash Flow and Buybacks Add Leverage

Second-quarter free cash flow increased 8.9% to $378 million. Gartner also repurchased 3.6 million shares for $547 million during the quarter, while its board increased the repurchase authorization by $500 million in July.

Adjusted EPS rose 23.8% to $4.37, faster than the 6.6% increase in adjusted net income to $291 million. The diluted share count fell to 66.6 million from 77.4 million, showing how buybacks amplified per-share growth.

                                                                 Image Source: Zacks Investment Research

IT’s Positive Signals Reinforce the Profit Story

Gartner’s raised earnings and free cash flow outlook, wider margins and lower share count support the profit case, but slower revenue expectations keep execution risk in focus. Improvement in Consulting and sustained margin discipline remain important variables.

The stock currently carries a Zacks Rank #1 (Strong Buy), You can see the complete list of today’s Zacks #1 Rank stocks here.It carries a Value Score of A and VGM Score of A. It also has a Growth Score of B and Momentum Score of B.

The Zacks Rank places IT among the top-ranked stocks based on earnings estimate revisions, while the A and B Style Scores indicate favorable value, growth and momentum characteristics. These signals are positive, but revenue growth and segment execution still warrant monitoring.

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This article originally published on Zacks Investment Research (zacks.com).

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