Tuesday, November 03, 2026
Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
3Q26 Overview. ISG delivered a robust financial performance in the third quarter, with strong cash generation, expanding margins, and solid revenue growth. Revenue in the quarter was driven by a return to growth in Asia Pacific, up 47%, AI-related revenues reaching over $30 million for the first time, and recurring revenues continuing to build, up 7%. This mix of growth helped drive adjusted EBITDA margin expansion to 15.4%, the highest quarterly margin in four years.
3Q26 Results. Revenues for 3Q26 were $65.1 million, up 4.4% from $62.4 million in the prior year. Revenues were $41.9 million in the Americas, down 1%; revenues in Europe were $17.0 million, up 6% on a reported basis; and Asia Pacific revenues were $6.2 million, up 47% on a reported basis. ISG reported GAAP net income of $3.4 million, compared with net income of $3.1 million in the prior year. Fully diluted earnings per share were $0.07, compared with fully diluted earnings per share of $0.06 in the prior year. Adjusted EPS was $0.10, up from $0.09 in the prior year’s third quarter. Adjusted EBITDA was $10.0 million, up 19% from the prior year.
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