ISG Reports Record $10.9B in Q4 2025 Tech Services Demand in Europe
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Businesswire
- Strong Quarterly Performance: According to ISG, Europe's technology services annual contract value (ACV) reached $10.9 billion in Q4 2025, marking a 27% year-over-year increase and the region's eighth consecutive quarter of growth, indicating robust market demand and rising confidence.
- Surge in Cloud Demand: The ACV for cloud services soared 34% year-over-year to $6.3 billion in Q4, driving overall market growth and reflecting sustained enterprise demand for cloud transformation and AI, further solidifying cloud services' dominance in the market.
- Divergent Industry Spending: While most industries saw increased managed services spending, with transportation, retail, and healthcare experiencing triple-digit growth, traditional sectors like banking, manufacturing, and telecom faced significant declines, highlighting shifts in market dynamics.
- Optimistic Future Outlook: ISG forecasts a 2.1% revenue growth for managed services and a 20% growth for cloud services (XaaS) in 2026, indicating that despite policy uncertainties and economic challenges, enterprises are actively investing in cloud and AI sectors.
Analyst Views on III
Wall Street analysts forecast III stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for III is 6.75 USD with a low forecast of 6.50 USD and a high forecast of 7.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 6.080
Low
6.50
Averages
6.75
High
7.00
Current: 6.080
Low
6.50
Averages
6.75
High
7.00
About III
Information Services Group, Inc. is a global artificial intelligence (AI)-centered technology research and advisory firm. The Company specializes in digital transformation services, including sourcing advisory, cloud and data analytics; managed governance and risk services, network carrier services, technology strategy and operations design; change management, and market intelligence and technology research and analysis. The Company’s ISG Network and Software Advisory services and its software platforms, including ISG GovernX and ISG Tango. ISG GovernX includes real-time third-party risk management capabilities, including integrated data feeds and real-time alerts. ISG Tango sourcing platform is an AI-embedded, comprehensive solution that enables enterprises and public sector organizations to evaluate their business requirements and identify desired outcomes. Its AI Maturity Index, a data-driven assessment platform designed to benchmark workforce readiness for AI at scale.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
