November 4, 2026 | TickerRoast Markets Analysis
Gartner (NYSE: IT) closed down 13.37% on Tuesday, Nov 3, 2026, according to StockTitan’s close-of-session wrap, from a prior close of $235.26 reported by MarketBeat. TheStreet’s live coverage showed it as the worst performer in the S&P 500 at midday. Data as of the Nov 3, 2026 close.
What Happened: Earnings Up, Growth Barely Moving
Gartner reported third-quarter 2026 results before the open. According to the company’s release, carried by Business Wire via Yahoo Finance, total revenue fell 1.3% to $1.505 billion, or rose 2.4% excluding the divested Digital Markets business. Insights revenue, the core research subscription line, grew 1.7% to $1.292 billion, conferences rose 15.4% to $86 million and consulting rose 2.3% to $126 million.
Profits looked far better. Adjusted EPS jumped 30.1% to $3.59, GAAP diluted EPS was $3.35, against $0.47 a year earlier, and adjusted EBITDA excluding the divested operation rose 7.5% to $364 million. According to StockStory, analysts had expected adjusted EPS of $2.84 and revenue of $1.49 billion. Gartner also raised its full-year guidance for revenue, adjusted EBITDA, adjusted EPS and free cash flow.
| Metric (Q3 2026) | Figure | Change / comment |
|---|---|---|
| Total revenue | $1,505M | -1.3% reported; +2.4% ex-divested unit |
| Insights revenue | $1,292M | +1.7% |
| Contract value (FX-neutral) | $5.3B | +2.5% year over year |
| Adjusted EPS | $3.59 | +30.1%; $2.84 expected per StockStory |
| Adjusted EBITDA (ex-divested) | $364M | +7.5% |
| Shares repurchased in Q3 | 0.9M | $138M |
Why It Moved: The Market Looked Past the Beat
Contract value is the number to watch here. It is the annualized value of Gartner’s subscription research contracts, and CFO Craig Safian has called it the most important measure of the business, according to call transcripts. It grew just 2.5% year over year to $5.3 billion. CEO Gene Hall said in the release that “Contract Value growth accelerated again,” but growth at that level is far from the double-digit pace the company once delivered.
Several outlets reported investor concerns about the quality of the beat. According to The Motley Fool and IBTimes, part of the EPS upside came from share buybacks rather than operating growth, and the company’s share count dropped to 63.9 million diluted shares from 75.0 million a year earlier, per Investing.com. The Fool also reported that Safian said a 4% contract value exit rate excluding the U.S. federal business is unlikely this year, citing the Middle East conflict and tech layoffs as pressures. Those are the reported facts. My own interpretation is that a stock that, according to the Fool, had rallied roughly 27% before the report was priced for better news on growth, and the EPS beat was not the kind of news investors were looking for.
The AI question also hangs over the name. IBTimes noted that AI tools are changing how companies buy research and advisory services. Management disagrees: Hall said on the call that AI “continues to be the most requested topic across our client base,” according to an Investing.com transcript. Investors appear to be waiting for proof in contract value growth.
Context: A Rough Stretch for a Former Compounder
The broader tape was split on Election Day. According to Yahoo Finance market data, the S&P 500 closed up 0.36% at 7,568.92 on Nov 3, 2026, the Nasdaq Composite gained 0.83% to 25,372.01 on a rebound in chip stocks, and the Dow Jones Industrial Average slipped 0.38% to 51,786.72, weighed down by Apple. Gartner’s decline was among the worst in the index; TheStreet showed it down 16.94% early in the session before it pared some losses.
Tuesday’s slide adds to a difficult year. StockStory reported that the shares were down about 13% year to date during the session, and that a $1,000 investment five years ago would now be worth about $632. According to MarketBeat, the stock opened at $208.00, well below Monday’s close.
The chart above shows the last six months of trading with moving averages, volume and RSI, using Yahoo Finance data. Tuesday’s session appears as the final candle.
What to Watch: Contract Value, Federal Exposure and Buybacks
The next catalysts are the fourth-quarter report, whose date has not yet been announced, and any update on contract value trends. According to call coverage by Investing.com, U.S. federal clients represent about 2% to 3% of contract value and contract value excluding federal grew 2.8%, so the business outside government is not dramatically stronger. The company had about $1.1 billion of buyback authorization remaining, per the same source, and repurchased $1.7 billion of stock over the last four quarters, according to the release. Updated full-year guidance calls for adjusted EPS of at least $14.65, according to transcript summaries.
Gartner is still very profitable. The question investors are asking is whether its research product can grow faster in a world where AI is changing how companies get advice.
Disclaimer: This article is for informational and entertainment purposes only and does not constitute investment, financial, legal or tax advice, nor a recommendation or solicitation to buy or sell any security. Market data are as of the stated close and may be delayed or revised; sources are cited above. Past performance does not guarantee future results. Investing involves risk, including the possible loss of capital. Do your own research and consult a licensed financial advisor before making any investment decision. TickerRoast and its authors may not hold positions in the securities mentioned and receive no compensation from the companies discussed.
Sources
- Gartner Reports Third Quarter 2026 Financial Results — Business Wire via Yahoo Finance
- Gartner Stock Crashed Despite Raised Guidance. Here’s What Spooked Investors — The Motley Fool
- Earnings call transcript: Gartner beats Q3 2026 estimates but shares fall — Investing.com
- Gartner exceeds Q3 2026 expectations — StockStory
- Why Gartner (IT) shares are getting obliterated today — StockStory
- Gartner shares fall on earnings forecast — IBTimes
- Gartner Shares Gap Down — MarketBeat
- Stock Market Today (Nov. 3, 2026) — TheStreet
- Stock Market Today Live, November 3, 2026 — StockTitan
- Stock market today: Dow slips, S&P and Nasdaq gain as chip stocks rally — Yahoo Finance
Market data: Yahoo Finance, close of 2026-11-03. Charts generated by TickerRoast from this data.
Disclaimer: This article is for informational and educational purposes only. It provides general financial and business analysis and does not constitute investment advice, a personal recommendation, a recommendation to buy, sell or hold any security, or an offer to transact in any financial instrument. Information is based on publicly available sources as of November 4, 2026 and market data as of the 2026-11-03 close (Yahoo Finance). Past performance is not a reliable indicator of future results; forecasts are uncertain and actual results may differ materially. Investing in shares involves risk, including the loss of capital. The publisher does not guarantee the accuracy or completeness of the information and accepts no responsibility for investment decisions made on the basis of this article. Readers should consult official company disclosures, conduct their own research and, where appropriate, seek advice from a licensed financial adviser. Any relevant financial interests held by the author or publisher in the securities mentioned are disclosed where applicable. This article was prepared with the assistance of AI tools and is based on the sources listed above.
Anonymous reader poll, just for fun. Not investment advice.
Read next
Get the daily market briefing
The stories that move markets, in your inbox every trading day at 9 a.m. ET. Free, unsubscribe anytime.
