Gartner raises 2026 profit outlook on strong cash flow, insights growth

Gartner (NYSE:IT) raised its full-year financial outlook after a first quarter characterized by resilient contract value growth and a significant jump in cash generation, prompting the board to bolster its share repurchase program.

The Stamford, Connecticut-based research and advisory firm reported first-quarter net income of $222 million, a 5.4% increase from the prior year.

While total reported revenue dipped 1.5% to $1.5 billion—largely due to currency headwinds and the impact of divested operations—adjusted revenue rose 1.6% on a reported basis.

On a foreign-exchange neutral basis, contract value, a key forward-looking indicator for its subscription-based business, accelerated during the period.

Profitability remained a highlight, with adjusted EBITDA excluding divested operations rising 5.7% to $395 million.

The company’s ability to convert earnings into liquidity was particularly strong: operating cash flow surged nearly 25% to $391 million, while free cash flow jumped 28.7% to $371 million.

Meanwhile, Gartner continues to aggressively return capital to investors.

The firm repurchased 3.3 million shares for $535 million during the first three months of the year.

Following the quarter's end, the Board of Directors increased the share repurchase authorization by an additional $600 million in April 2026, signaling confidence in the company’s long-term valuation and balance sheet.