IT · 10-Q · 2026Q2 · Full report

Consulting Demand And Backlog

GARTNER INC · 2026-08-04 · Importance 36 · Surprise 40

Consulting revenue declined 9% year over year in the second quarter of 2026 and 12% in the first six months, with labor-based consulting revenue down 13% in both periods. Second-quarter weakness was concentrated in Japan and Europe, Middle East and Africa, primarily in commercial-sector work; six-month weakness also included the United States, particularly the public sector. Contract optimization revenue increased 1% in the quarter but decreased 8% for the six-month period, reflecting variability in this offering. Despite lower revenue, consulting backlog increased 9% to $213.8 million at June 30, 2026, while six-month consultant utilization declined three percentage points.

Key facts

• Consulting backlog was $213,800 (in thousands) as of June 30, 2026 compared to $195,900 (in thousands) as of June 30, 2025, an increase of $17,900 or 9% excluding foreign currency impact. source
• Consulting billable headcount decreased by 107, or 11%. source
• Consultant utilization decreased by 3 points for the six months ended June 30, 2026 compared to the same period in 2025. source