Key Highlights

  • AI-related revenue grew 64% and is now 37% of total revenue.
  • Second-quarter revenue was $65.5 million, up 6.4% year over year.
  • Adjusted EBITDA grew 13% in the second quarter.
  • The board authorised a $30 million share buyback.

Information Services Group, Inc. (NASDAQ:III) enters the week with investors weighing how quickly artificial intelligence advisory demand is feeding into reported results. The technology research and advisory firm said in its second-quarter 2026 report that AI-related revenue grew 64% and now represents 37% of total revenue, a notable shift in its business mix. The company has a market capitalisation of roughly $282 million, so the story rests on company-specific fundamentals.

Latest Company Context

For the second quarter of 2026, ISG reported revenue of $65.5 million, up 6.4% year over year, while adjusted EBITDA grew 13%. The company also announced a board authorisation for a $30 million share buyback, a sizeable figure relative to a market value of about $282 million. Management has indicated that it expects continued growth and margin expansion. The company pays a dividend of $0.18 per share annually, with the most recent ex-dividend date listed as September 4, 2026. Recent press releases have centred on ISG's research output, including topics such as public-sector digital modernisation, AI in revenue and billing software, and application modernisation.

Key Business Drivers

ISG sells advisory, research and sourcing services to enterprises that are navigating technology outsourcing, cloud migration and, increasingly, AI adoption. The rapid rise in AI-related revenue could indicate that clients are turning to independent advisers to evaluate vendors and manage complex deals. Whether that momentum can be sustained may depend on enterprise technology budgets, deal cycles and the pace of recurring research revenue. Margin expansion, if delivered, could potentially amplify the effect of top-line growth, as suggested by adjusted EBITDA growing roughly twice as fast as revenue in the quarter. Capital allocation is another driver: a buyback and dividend together may support per-share metrics, though execution and timing are at management's discretion.

What Investors Should Watch

The most identifiable catalyst is the third-quarter 2026 earnings release, estimated for November 2, 2026. Investors may watch whether AI-related revenue continues to outgrow the rest of the business, whether the share of AI revenue rises beyond 37%, and whether management maintains its growth and margin-expansion outlook. Other items include the pace of share repurchases under the new $30 million authorisation, any updates to the dividend, and the strength of bookings in the Americas and Europe. Commentary on pricing, client decision timelines and the competitive landscape among advisory firms may also be informative.

An AI-Heavy Revenue Mix With a Sizeable Buyback

ISG's second quarter shows AI advisory demand reshaping the revenue mix, now 37% of the total. The $30 million buyback is large against a market value near $282 million, and management's expected growth and margin expansion are the claims to track.