IT · 8-K · 20260804PR000243

Operating Margin Drivers

GARTNER INC · 2026-08-04 · Importance 54 · Surprise 40 · From source text

Operating income increased to $378.5 million in the second quarter of 2026 from $327.1 million in the prior-year quarter, raising operating margin to approximately 22.6% from 19.4%. Cost of services and product development decreased to $487.0 million from $531.7 million, a reduction of 8.4% that supported the operating-income improvement. Selling, general and administrative expense declined to $764.6 million from $777.0 million, while adjusted EBITDA excluding the divested operation rose 6.4% to $466 million.

Key facts

• Adjusted EBITDA excluding divested operation for Q2 2026: $466 million, +6.4% as reported, +4.4% FX neutral source
• Adjusted EBITDA reconciliation shows Adjusted EBITDA $466 million for Q2 2026 and $443 million for Q2 2025 source
• Q2 2026 Adjusted EBITDA excluding divested operation margin implication: Adjusted EBITDA excluding divested operation $466 million divided by Adjusted Revenue $1,676 million (per definitions) is the basis for Adjusted EBITDA Margin Excluding Divested Operation source
• Total costs and expenses for Q2 2026: $1,297.4 million and operating income: $378.5 million source
• Costs and expenses line items for Q2 2026: Cost of services and product development $487.0 million; Selling, general and administrative $764.6 million; Depreciation $25.1 million; Amortization of intangibles $20.0 million source
• Other (expense) income, net for Q2 2026 was $(1.6) million compared to $2.5 million in Q2 2025 source
• Amortization of acquired intangibles in Q2 2026: $20 million and $0.30 per share source
• Interest expense, net for three months ended June 30, 2026: $22 million (22.3 in statement) source

Impact estimates