Information Services Group Q2 revenue beats estimates, driven by AI-centered research

Information Services

05/08/2026 21:44

Overview
AI-centered tech advisory firm's Q2 revenue rose 6.4%, beating analyst expectations
Q2 adjusted net income and adjusted EBITDA both beat analyst estimates
Company expanded share repurchase program by $30 mln, largest in its history

Outlook
Company targets Q3 revenue between $63.5 mln and $64.5 mln
Company expects Q3 adjusted EBITDA between $8.5 mln and $9.5 mln
Company says demand for AI-centered services remains strong amid uncertain macro conditions

Result Drivers
AI SERVICES DEMAND - Co said recurring revenues reached a new quarterly high, driven by AI-centered research and governance services
REGIONAL GROWTH - Europe revenue rose 10% and Americas revenue rose 7%, leading overall growth, per CEO Michael P. Connors
COST OPTIMIZATION SERVICES - Co said demand for cost optimization and business transformation services remained strong amid uncertain macro conditions

Company press release: ID:nBw8gPz13a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$65.50 mln
$62.86 mln (5 Analysts)
Q2 EPS
 
$0.07
 
Q2 Adjusted Net Income
Beat
$5 mln
$4.45 mln (3 Analysts)
Q2 Adjusted EBITDA
Beat
$9.40 mln
$8.52 mln (5 Analysts)
Q2 Adjusted EBITDA Margin
 
14.30%
 
Q2 Operating Income
 
$5.90 mln
 

Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy."
Wall Street's median 12-month price target for Information Services Group Inc is $7.00, about 59.8% above its August 4 closing price of $4.38
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Aug 4 - Hackett Group Q2 adjusted revenue misses estimates on business model transition
Aug 5 - Wolters Kluwer reports 5% organic revenue rise as clients adopt AI tools
Aug 5 - Thomson Reuters Q2 revenue rises 9%, beats estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)