A research and advisory firm that helps companies around the world decide what technology to buy, serving thousands of enterprises through subscriptions, the Symposium/Xpo conference series, and custom consulting. Founded in 1979 by former IBM analyst Gideon Gartner, who gave the firm his own name, it built its reputation on the Magic Quadrant reports that rank technology vendors on a simple two-axis chart.
Q2 2026 operating income rose 15.7% to $378.5M as costs fell after the Digital Markets sale
Costs fell after the sale, lifting profit even as slipped. Revenue declined 0.6% to $1,675.9M while rose 33.1% to $4.14 on a of 71.5% and lower operating expenses. The business is earning more per dollar of revenue with a narrower base.
Key takeaways
rose 15.7% to $378.5M and rose 33.1% to $4.14, as cost of services and SG&A declined largely from the divestiture and lower headcount.
fell 0.6% to $1,675.9M and rose 10.9% from Q1, with the decline driven by the February 2026 sale of the business that previously made up the Other .
rose 15% to $244M on higher exhibitor and attendee revenue despite one fewer destination conference, the quarter's leading growth driver.
Section summaries
Management's Discussion and Analysis
Total revenue fell 1% to $1.7B on the Digital Markets sale; operating income rose 16% on lower costs, and net income reached $275M.
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grew 2% to $1.29B, with up 2% to $5.3B, led by banking and energy sectors while public sector declined mid-single digits.
grew 2% to $1.29B with contract value up 2% to $5.3B, led by banking and energy while public sector declined mid-single digits.
fell 9% to $142M on lower labor-based work, though rose 9% to $214M, signaling future revenue.
The company repurchased $1.1B of shares in H1 and held $1.5B cash with $1.0B available on its at quarter-end; reached $789M year-to-date.
was 71.5%, up 2.9 points , and rose 3.2 points to 22.6%.
What changed
contract value grew 2% to $5.3B from the $5.2B year-end 2025 base, recovering slightly from the 1% rate flagged to watch but still below the prior 7-8% levels.
US federal government contract value was not separately updated this quarter after the mid-2025 weakness to ~$200M; public sector declined mid-single digits within Insights, indicating the decline has not reversed.
Share repurchases resumed at $1.1B in H1 2026 against $1,666.9M cash and $1.0B after $534.6M in Q1, continuing the 2025 pace that deployed $2.0B.
gross contribution margin was again not disclosed, still absent since the 50% 2023 rate, even as Conferences rose 15% to $244M.
rose 21.0% to $2,979.3M , up from $2,976.7M at year-end 2025, after the $800M senior notes issued in 2025.
of $275.5M rose 14.4% with no one-off or insurance gain, unlike Q3 2025's $150M that cut net income to $35.4M.
What to watch
contract value next quarter from the $5.3B base — whether the 2% growth recovers toward prior 7-8% levels or stays flat.
US federal government contract value in Q3 2026 — whether the public sector mid-single-digit decline reverses or deepens.
gross contribution margin disclosure in Q3 2026, still absent since the 50% 2023 rate despite swings.
Pace of share repurchases in H2 2026 against $1.5B cash and $1.0B after $1.1B in H1.
jumped 15% to $244M driven by higher exhibitor and attendee revenue, despite holding one fewer destination conference.
fell 9% to $142M on lower labor-based work, though rose 9% to $214M, signaling future revenue.
Cost of services and SG&A both declined, largely from the divestiture and lower headcount, lifting .
rose to $789M year-to-date; the company held $1.5B in cash and $1.0B in available credit, and repurchased $1.1B in shares.
Quantitative and Qualitative Disclosures About Market Risk
Debt is entirely fixed-rate; foreign-currency cash holdings and translation exposure are the primary market risks, partially hedged with forwards.
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All $3.0 billion of debt principal was fixed-rate as of June 30, 2026, so earnings are not directly exposed to floating-rate moves.
A 10% adverse shift in all foreign exchange rates would have changed reported cash and cash equivalents by approximately $125.9 million.
from foreign-currency assets and liabilities is deferred in equity and has not historically had a material earnings impact, though significant volatility could change that.
The company uses foreign currency forward contracts to mitigate ; the net unrealized loss on those contracts was immaterial at quarter-end.
Credit risk is limited because cash, equivalents, and derivatives are placed with large investment-grade banks, and customer are widely dispersed.
We are involved in legal and administrative proceedings and litigation arising in the ordinary course of business. We believe that the potential liability, if any, in excess of amounts already accrued from all proceedings, claims and litigation will not have a material effect on…
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We are involved in legal and administrative proceedings and litigation arising in the ordinary course of business. We believe that the potential liability, if any, in excess of amounts already accrued from all proceedings, claims and litigation will not have a material effect on our financial position, cash flows or results of operations when resolved in a future period.
There were no material changes to the risk factors disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025.
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There were no material changes to the risk factors disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025.