Information Services Group, Inc. (ISG) reported a revenue increase of 3% for the first quarter of 2026, totaling $61.2 million compared to $59.6 million in the same period of 2025. The growth was primarily driven by a significant rise in revenues from Europe, which surged by 25% to $17.3 million, attributed to increased activity in the Consulting and Network & Software service lines. However, revenues in the Americas declined by 3% to $39.8 million, largely due to decreases in the same service lines, while the Asia Pacific region saw a 15% drop to $4.1 million.
Operating income for the quarter rose to $5.0 million, up from $3.4 million a year earlier, reflecting improved profitability. Net income also increased significantly to $2.7 million, or $0.06 per share, compared to $1.5 million, or $0.03 per share, in the prior year. The company’s effective tax rate for the quarter was 37.2%, slightly lower than the 37.9% reported in the previous year, influenced by a higher pre-tax income and non-deductible expenses.
In terms of operational developments, ISG completed the acquisition of AI Maturity Index, a SaaS platform, for $750,000, which will enhance its AI-related offerings. Additionally, the company continues to focus on expanding its geographic footprint and service offerings, with a particular emphasis on leveraging AI to drive operational excellence for its clients. As of March 31, 2026, ISG had approximately 1,500 employees and served over 900 clients, including 75 of the world's top 100 enterprises.
The company’s cash and cash equivalents decreased to $22.8 million from $28.8 million at the end of 2025, primarily due to net cash used in operating activities and debt repayments. ISG's outstanding borrowings remained stable at $59.2 million, with the company maintaining compliance with its financial covenants. Looking ahead, ISG anticipates that its current cash and ongoing cash flows will be sufficient to meet its working capital and capital expenditure needs for at least the next twelve months, although it remains vigilant regarding potential economic fluctuations and their impact on business operations.
About Information Services Group Inc.
Information Services Group, Inc. is a global AI-focused technology research and advisory firm providing digital transformation, sourcing, analytics, and risk management services. Serving private and public sector clients worldwide, it leverages proprietary data, market intelligence, and industry expertise to help organizations optimize operations, adopt emerging technologies, and achieve growth through independent, data-driven advice and innovative platforms.
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