Gartner Gears Up to Report Q2 Earnings: Key Takeaways for Investors
IT's Q2 revenues are expected to dip as Insights and Consulting weaken, while EPS may rise on cost discipline and share repurchases.
Gartner Inc. IT will release second-quarter 2026 results on Aug. 4, before market open.
IT has an impressive earnings surprise history. In the four trailing quarters, it surpassed the Zacks Consensus Estimate, with an average surprise of 10.6%.
Gartner’s Q2 Expectations
The Zacks Consensus Estimate for the top line is pinned at $1.7 billion. It is expected to recede 2.4% from the year-ago quarter’s actual. Revenues are expected to have sunk primarily due to a weaker performance in Insights, which contributes the majority of the top line. A slowdown in Consulting revenues is predicted to have affected the top line.
The consensus mark for Insights revenues is $1.3 billion, implying a 2.5% year-over-year decline. We expect the segment to have sustained a blow due to shrinking contract value, as evidenced by a Zacks Consensus Estimate of $4.2 billion, suggesting a 10.7% year-over-year drop. This anticipated cut down in contract value is likely to have stemmed from a slump in client engagement and retention.
For Conferences, the Zacks Consensus Estimate is pinned at $218.9 million. The figure is expected to move up 3.5% from the year-ago quarter’s actual. As mentioned by Craig Safian, the CFO, during first-quarter 2026 earnings, Gartner plans to hold 56 in-person destination conferences in 2026. The trajectory to complete these conferences is anticipated to have supported growth.
The consensus estimate for Consulting revenues is anticipated to plunge 13.5% year over year. This segment’s revenues are tracking at $134.5 million. Contract optimization is highly variable, which is anticipated to have potentially shifted revenue realization during the second quarter of 2026, affecting this segment.
The consensus estimate for earnings per share is $3.77, implying a 6.8% year-over-year escalation. The factors, including agile expense management, leading to margin expansion and continued share repurchases lowering share count, are expected to have supported this upsurge in the bottom line.
What Our Model Says About IT
Our proven model does not conclusively predict an earnings beat for Gartner this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
IT has an Earnings ESP of -1.48% and a Zacks Rank of 4 (Sell) at present.
Stocks to Consider
Here are a few stocks, according to our model, which have the right combination of elements to beat on earnings this season.
Duolingo, Inc. DUOL: The Zacks Consensus Estimate for second-quarter 2026 revenues is pegged at $297.4 billion, suggesting a 17.9% jump from the year-ago quarter’s actual. For earnings, the consensus mark is set at 61 cents per share, a 33% plunge from the year-ago quarter. DUOL beat the consensus estimate in the trailing four quarters, with an average surprise of 32.3%.
DUOL has an Earnings ESP of +9.02% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
It is scheduled to declare second-quarter 2026 results on Aug. 5.
Dave Inc. DAVE: The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is $169.8 million, suggesting a 28.9% jump from the year-ago quarter’s actual. For earnings, the consensus mark is $3.69 per share, indicating 17.5% growth. DAVE beat the consensus estimate for earnings in the trailing four quarters, with an average surprise of 45.8%.
DAVE has an Earnings ESP of +1.42% and a Zacks Rank of 2 at present. The company is scheduled to declare second-quarter 2026 results on Aug. 5.
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This article originally published on Zacks Investment Research (zacks.com).