Friday, May 08, 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.
Overview. ISG delivered a strong first quarter, with revenue and adjusted EBITDA both at the top end of guidance. For the quarter, adjusted EBITDA margins expanded more than 100 basis points from the prior year. Revenue growth was driven primarily by Europe, up 25%, and recurring revenues, up 9%, as AI continues to be a tailwind for the Company.
1Q26 Results. ISG reported 1Q26 revenue of $61.2 million, up 2.7% y-o-y and above our $60.5 million estimate. Americas’ revenue of $39.8 million was down 3% y-o-y, Europe was up 25% to $17.3 million, and Asia Pacific was down 15% to $4.1 million. Adjusted EBITDA rose 11.8% y-o-y to $8.27 million, while the margin expanded to 13.5% from 12.4%. We were at $7.55 million and 12.5%. ISG reported net income of $2.7 million, up 83% y-o-y, and EPS of $0.05. Adjusted EPS was $0.09, up 17%. We were at $0.04 and $0.07, respectively.
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