IT · Earnings call · 2026Q2T · Full report
Liquidity and Debt Position
GARTNER INC · 2026-08-04 · Importance 56 · Surprise 24 · No source text
Gartner held approximately $1.5 billion of cash at June 30, 2026. Management identified about $500 million as required to run the business and approximately $1 billion as available for shareholder deployment. June 30 debt was approximately $3 billion, with reported gross debt to trailing-twelve-month EBITDA below 2x. Rolling four-quarter free cash flow was $1.3 billion, and second-quarter free cash flow was $378 million, up 9% year-over-year.
Key facts
- Expect 2026 free cash flow at or above $1.185 billion, reflecting conversion from GAAP net income of 136%.
- At the end of Q2, Gartner had about $1.5 billion of cash, including about $500 million for running the business and around $1 billion available to deploy on behalf of shareholders.
- After adjustments, free cash flow was 20% of reported revenue, 78% of adjusted EBITDA and 140% of GAAP net income.
- Free cash flow on a rolling four-quarter basis was $1.3 billion.
- June 30 debt balance was about $3 billion.
- Second quarter free cash flow: $378 million, up 9% year-over-year.
- Reported gross debt to trailing 12-month EBITDA was under 2x.
- Gartner expects the conversion of GAAP net income will improve as contract value accelerates (forward-looking assertion).
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | positive | committed | — | Expect 2026 free cash flow at or above $1.185 billion, reflecting conversion from GAAP net income of 136%. |
| cash | unclear | realized | — | At the end of Q2, Gartner had about $1.5 billion of cash, including about $500 million for running the business and around $1 billion… |
| cash | positive | realized | — | After adjustments, free cash flow was 20% of reported revenue, 78% of adjusted EBITDA and 140% of GAAP net income. |
| cash | positive | realized | — | Free cash flow on a rolling four-quarter basis was $1.3 billion. |
| liability | unclear | realized | — | June 30 debt balance was about $3 billion. |
| cash | positive | realized | — | Second quarter free cash flow: $378 million, up 9% year-over-year. |