IT · Earnings call · 2026Q2T · Full report

Contract Value Performance

GARTNER INC · 2026-08-04 · Importance 49 · Surprise 32 · In source text

Second-quarter total contract value was $5.3 billion, up 2% year-over-year and accelerating 70 basis points from Q1, while increasing 30 basis points sequentially. Contract value excluding the U.S. federal government grew 3.3%, supported by positive $4 million of ex-federal NCVI in the quarter. GTS contract value was $4 billion, up 1% year-over-year, while GBS contract value was $1.3 billion, up 3% year-over-year. GBS core subscription contract value grew about 7% year-over-year, and management expects overall and ex-federal contract-value growth to continue accelerating.

Key facts

• Contract value at the end of Q2: $5.3 billion, a sequential increase of 30 basis points from Q1.
• Contract value year-over-year: up 2%, a 70-basis-point acceleration from last quarter.
• New business in Q2 was about $240 million.
• Consulting backlog at June 30 was $214 million, up about 9% year-over-year.
• At June 30, U.S. federal contract value was approximately $125 million.
• Contract optimization had $148 million of revenue on an LTM basis, consistent with Q1 of this year.
• Contract value ex-Fed grew 3.3% in the quarter and total CV year-over-year growth improved by 70 basis points from Q1 of 2026.
• Across GTS and GBS, new business dollars increased by about 10% from Q1.

Impact estimates