Gartner, Inc. stock research
FY2026 Q1
Gartner (IT) Gross Margin — Quarter Ended Mar 31, 2026
Revenue decreased from the prior quarter, while gross profit also decreased, but gross margin improved due to a larger proportional decrease in cost of revenue. Compared to the same quarter last year, revenue and gross profit were stable, while gross margin was higher as cost of revenue was lower.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue decreased from the prior quarter, while gross profit also decreased, but gross margin improved due to a larger proportional decrease in cost of revenue. Compared to the same quarter last year, revenue and gross profit were stable, while gross margin was higher as cost of revenue was lower.
- The improvement in gross margin is primarily associated with a reduction in cost of revenue relative to revenue, as revenue was stable year-over-year and lower sequentially.
- Gross margin strengthened sequentially from the prior quarter and improved versus the same quarter last year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.9%
Gross profit
$1.1B
Revenue
$1.5B
Cost of revenue
$429.3M
Quarter-over-quarter change
+4.1 pts
Year-over-year change
+2.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $1.7B | $1.2B | $531.7M | 68.6% |
| Sep 30, 2025 | $1.5B | $1.1B | $474.2M | 69.3% |
| Dec 31, 2025 | $1.8B | $1.2B | $572.6M | 67.8% |
| Mar 31, 2026 | $1.5B | $1.1B | $429.3M | 71.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+4.1 pts
Year-over-year change
Mar 31, 2025
+2.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin is primarily associated with a reduction in cost of revenue relative to revenue, as revenue was stable year-over-year and lower sequentially.
Gross margin strengthened sequentially from the prior quarter and improved versus the same quarter last year.
Monitor whether the lower cost of revenue level is sustainable in upcoming quarters.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Gartner, Inc. (IT) | 71.9% |