IT · Earnings call · 2026Q2T · Full report

Customer Retention Dynamics

GARTNER INC · 2026-08-04 · Importance 17 · Surprise 24

Wallet retention improved sequentially across GTS and GBS as downsell activity stabilized and in-quarter retention rates increased. Management said outright cancellations remain a small issue, with the primary pressure coming from customers holding or reducing spend rather than expanding at renewal. Stronger engagement and the BTI transformation are expected to create more opportunities for price increases, higher-level services, additional users and new buying centers within existing enterprises.

Key facts

• Client engagement improved 140 basis points compared to last year.
• GTS retention for the quarter was 97%, an improvement from the first quarter.
• Ex-Fed wallet retention was 99%.
• GBS wallet retention for the quarter was 99%.