IT · 10-Q · 2026Q2 · Full report
Operating Expense Trends
GARTNER INC · 2026-08-04 · Importance 43 · Surprise 32 · No source text
Cost of services and product development decreased $44.8 million, or 8%, to $486.9 million in the second quarter and decreased $90.5 million, or 9%, to $916.2 million for the first six months. Quarterly reductions included $22.8 million less product and content delivery expense and $22.8 million less personnel expense; six-month reductions were $48.7 million and $42.8 million, respectively. SG&A declined $12.3 million, or 2%, in the quarter and $16.3 million, or 1%, year to date, primarily from lower severance expense, while quota-bearing sales associates declined 3% to 3,581 in Global Technology Sales and 1,293 in Global Business Sales.
Key facts
- Cost of services and product development was $486,909 (in thousands) for the three months ended June 30, 2026, a decrease of $44,822, or 8%, compared to the same period in 2025. source
- Cost of services and product development was $916,216 (in thousands) for the six months ended June 30, 2026, a decrease of $90,545, or 9%, compared to the same period in 2025. source
- Selling, general and administrative expense was $764,592 (in thousands) for the three months ended June 30, 2026, a decrease of $12,296, or 2%, compared to the same period in 2025. source
- Cost of services and product development as a percent of revenues was 29% for the three months ended June 30, 2026 and 32% for the three months ended June 30, 2025. source
- Cost of services and product development as a percent of revenues was 29% for the six months ended June 30, 2026 and 31% for the six months ended June 30, 2025. source
- SG&A expense as a percent of revenues was 46% during both the three months ended June 30, 2026 and 2025. source
- Stock-based compensation expense for the six months ended June 30, 2026: $86,860 (in thousands) and for the six months ended June 30, 2025: $93,195 (in thousands). source
- Depreciation expense was $25,145 (in thousands) for the three months ended June 30, 2026, a decrease of $5,390, or 18%, compared to the same period in 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +5.4% | Cost of services and product development was $916,216 (in thousands) for the six months ended June 30, 2026, a decrease of $90,545, or 9%,… |
| margin | positive | realized | +3.0% | Cost of services and product development as a percent of revenues was 29% for the three months ended June 30, 2026 and 32% for the three… |
| operating_income | positive | realized | +2.7% | Cost of services and product development was $486,909 (in thousands) for the three months ended June 30, 2026, a decrease of $44,822, or… |
| margin | positive | realized | +2.0% | Cost of services and product development as a percent of revenues was 29% for the six months ended June 30, 2026 and 31% for the six… |
| operating_income | positive | realized | +0.7% | Selling, general and administrative expense was $764,592 (in thousands) for the three months ended June 30, 2026, a decrease of $12,296,… |