<PAGE>


                                      FORM 10-Q



                          SECURITIES AND EXCHANGE COMMISSION
                               Washington, D.C.  20549


               (x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                         THE SECURITIES EXCHANGE ACT OF 1934
                  For the quarterly period ended September 30, 1998

                                          or

               ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                         THE SECURITIES EXCHANGE ACT OF 1934


                            Commission file number 0-4090

                          ANALYSTS INTERNATIONAL CORPORATION

                          Minnesota           41-0905408

                                 7615 Metro Boulevard
                                Minneapolis, MN  55439
                                    (612) 835-5900




Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months and (2) has been subject to such filing requirements for
the past 90 days.
                                   Yes   X       No
                                       -----




As of October 30, 1998, 22,518,625 shares of the Registrant's Common Stock were
outstanding.

<PAGE>

                          ANALYSTS INTERNATIONAL CORPORATION

                                        INDEX



<TABLE>
<CAPTION>
                                                                       Page
                                                                     Number
                                                                     ------

PART I.   FINANCIAL INFORMATION:
<S>          <C>                                                     <C>
   Item 1.   Condensed Consolidated Balance Sheets
              September 30, 1998 (Unaudited) and June 30, 1998            1

             Condensed Consolidated Statements of Income
              Three months ended September 30, 1998 and 1997
              (Unaudited)                                                 2

             Condensed Consolidated Statements of Cash Flows
              Three months ended September 30, 1998 and 1997
              (Unaudited)                                                 3

             Notes to Condensed Consolidated Financial
              Statements (Unaudited)                                      4

   Item 2.   Management's Discussion and Analysis of Financial
              Condition and Results of Operations                       5-6
</TABLE>

<PAGE>

                          ANALYSTS INTERNATIONAL CORPORATION

                        CONDENSED CONSOLIDATED BALANCE SHEETS

                                        ASSETS

<TABLE>
<CAPTION>
                                                     September 30,     June 30,
(In thousands)                                            1998           1998
                                                     -------------     ---------
                                                      (Unaudited)
<S>                                                  <C>               <C>
Current assets:
   Cash and cash equivalents                           $ 13,583       $ 11,868
   Accounts receivable, less allowance
    for doubtful accounts                                95,477         94,294
   Other current assets                                   3,971          3,808
                                                          -----          -----
    Total current assets                                113,031        109,970

Property and equipment, net                              14,916         10,360
Other assets                                             12,518         12,331
                                                         ------         ------
                                                       $140,465       $132,661
                                                        -------        -------
                                                        -------        -------

                         LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
   Accounts payable                                     $21,288        $21,236
   Dividend payable                                       2,249          1,795
   Salaries and vacations                                14,763         15,669
   Other, primarily self-insured health care reserves     2,056          2,161
   Income taxes payable                                   5,362          1,635
                                                          -----          -----
    Total current liabilities                            45,718         42,496

Long-term liabilities                                     7,381          7,171

Shareholders' equity                                     87,366         82,994
                                                         ------         ------
                                                       $140,465       $132,661
                                                       --------       --------
                                                       --------       --------
</TABLE>

Note:  The balance sheet at June 30, 1998 has been taken from the audited
          financial statements at that date, and condensed.


              See notes to condensed consolidated financial statements.


                                          1
<PAGE>

                          ANALYSTS INTERNATIONAL CORPORATION

                     CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                     (Unaudited)

<TABLE>
<CAPTION>
                                                          Three Months Ended
(In thousands except per share amounts)                      September 30
                                                        -----------------------
                                                             1998        1997
                                                             ----        ----
<S>                                                     <C>           <C>
Professional services revenues:
  Provided directly                                      $123,373    $104,671
  Provided through sub-suppliers                           35,091      30,487
                                                           ------      ------
       Total revenues                                     158,464     135,158

Expenses:
  Salaries, contracted
    services and direct charges                           123,621     104,571
  Selling, administrative and other
    operating costs                                        24,959      21,951
                                                           ------      ------
       Total expenses                                     148,580     126,522
                                                          -------     -------

Operating income                                            9,884       8,636

Non-operating income                                          309         331
                                                             ----        ----

Income before income taxes                                 10,193       8,967

Income taxes                                                4,067       3,587
                                                            -----      ------

Net income                                               $  6,126    $  5,380
                                                            -----       -----
                                                            -----       -----

PER COMMON SHARE:*
  Net income (basic)                                     $    .27    $    .24
                                                            -----       -----
                                                            -----       -----
  Net income (diluted)                                   $    .27    $    .24
                                                            -----       -----
                                                            -----       -----
  Dividends paid                                         $    .08    $    .06
                                                            -----       -----
                                                            -----       -----

Average common shares
  outstanding*                                             22,481      22,310
                                                           ------      ------
                                                           ------      ------

Average common and common
  equivalent shares outstanding*                           22,875      22,757
                                                           ------      ------
                                                           ------      ------
</TABLE>

*1997 amounts have been adjusted to reflect the 3 for 2 common stock split in 
the form of a stock dividend distributed December 3, 1997.

              See notes to condensed consolidated financial statements.



                                          2
<PAGE>

                          ANALYSTS INTERNATIONAL CORPORATION

                   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                     (Unaudited)

<TABLE>
<CAPTION>
                                                            Three Months Ended
                                                               September 30
                                                            ------------------
(In thousands)                                               1998        1997
                                                             ----        ----
<S>                                                       <C>         <C>
Net cash provided by operating activities                 $ 8,419     $ 4,991


Cash flows from investing activities:
 Property and equipment additions                          (5,404)     (1,050)
                                                            -----       -----
  Net cash used in investing activities                    (5,404)     (1,050)


Cash flows from financing activities:
 Cash dividends                                            (1,798)     (1,337)
 Proceeds from exercise of stock options                      498         539
                                                              ---         ---
  Net cash used in financing activities                    (1,300)       (798)


                                                            -----       -----
Net change in cash and equivalents                          1,715       3,143

Cash and equivalents at beginning of period                11,868      17,888
                                                           ------      ------

Cash and equivalents at end of period                     $13,583     $21,031
                                                           ------      ------
                                                           ------      ------
</TABLE>


              See notes to condensed consolidated financial statements.





                                          3
<PAGE>

                          ANALYSTS INTERNATIONAL CORPORATION

                 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                     (Unaudited)

1.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Condensed Consolidated Financial Statements - The condensed consolidated
     balance sheet as of September  30, 1998, the condensed consolidated
     statements of income for the three month periods ended September 30, 1998
     and 1997 and the condensed consolidated statements of cash flows for the
     three month periods then ended have been prepared by the Company, without
     audit.  In the opinion of management, all adjustments (which include only
     normal recurring adjustments) necessary to present fairly the financial
     position, results of operations and the cash flows at September 30, 1998
     and for the periods then ended have been made.

     Certain information and footnote disclosures normally included in financial
     statements prepared in accordance with generally accepted accounting
     principles have been condensed or omitted.  It is suggested these condensed
     consolidated financial statements be read in conjunction with the financial
     statements and notes thereto included in the Company's June 30, 1998 annual
     report to shareholders.

2.   SHAREHOLDERS' EQUITY

<TABLE>
<CAPTION>
                                                    Three Months Ended
                                                    September 30, 1998
                                                   --------------------
                                                      (In thousands)
     <S>                                           <C>
     Balance at beginning of period                       $82,994
     Cash dividends declared:
        August 20, 1998 at $.10 per share                  (2,252)
     Proceeds upon exercise of stock options                  443
     Stock-based compensation                                  55
     Net income                                             6,126
                                                            -----
     Balance at end of period                            $ 87,366
                                                         --------
                                                         --------
</TABLE>

3.   NET INCOME PER COMMON SHARE

     Basic and diluted earnings per share (EPS) are presented in accordance with
     Statement of Financial Accounting Standards (SFAS) No. 128, "Earnings per
     Share". The difference between average common shares and average common and
     common equivalent shares is the result of outstanding stock options.



                                          4
<PAGE>

Item 2.

                         MANAGEMENT'S DISCUSSION AND ANALYSIS
                   OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                    Three Months Ended September 30, 1998 and 1997



CHANGES IN FINANCIAL CONDITION

Working capital at September 30, 1998 was $67.3 million, down 0.3% from the
$67.5 million at June 30, 1998.  This includes cash and cash equivalents of
$13.6 million compared to $11.9 million at June 30, 1998 and accounts receivable
of $95.5 million compared to $94.3 million at June 30, 1998.  Ratios of current
assets to current liabilities and total assets to total liabilities have
decreased slightly since June 30, 1998.

The Company's primary need for working capital is to support accounts receivable
resulting from the growth in its business and to fund the time lag between
payroll disbursement and receipt of fees billed to clients.  Over the past
years, the Company has been able to support the growth in its business with
internally generated funds.  The Company's sub-supplier contracts are not
expected to burden working capital.

On August 20, 1998 the Board of Directors increased the regular quarterly
dividend to $.10 per share payable November 13, 1998 to shareholders of record
on October 30, 1998. The previous dividend rate was $.08 per share.

In January 1998 the Company entered into an agreement to build a facility for
use as its corporate headquarters and its Minneapolis branch operations.  The
Company expects construction and related costs will be approximately $22,000,000
and these costs will be financed through a combination of unsecured debt and use
of cash reserves.

The Company believes funds generated from its business, current cash balances
and the above mentioned financing are adequate to meet demands placed upon its
resources by its operations, capital investments and the payment of quarterly
dividends.

The Company intends to achieve Year 2000 compliance by replacing its computer
systems with new, Y2K compliant hardware and software which is currently being
subjected to compliance testing.  It is expected the new hardware/software
system will be ready for use in production by February 1, 1999.  The cost of the
new system is expected to be approximately $2,500,000, of which $2,000,000 has
already been incurred.  The Company depends on its computer system for critical
business functions, including time record keeping, billing, payroll, and
accounts payable and receivable.  The loss of these capabilities would have a
material adverse impact on the Company.  The Company believes, however, its new
computer systems will be ready in time for the millennium date change, and
accordingly no contingency plan has been developed at this time.  If Y2K
compliance testing currently being performed exposes weaknesses (Y2K or
otherwise) in the new system, or if implementation into production is deferred
beyond February 1, 1999, the Company intends to develop a contingency plan,
which will likely take into account the fact it has a staff of over 4,500
computer programmers as well as a national Y2K practice which can assist in
achieving Y2K compliance.  The Company's business does not depend on raw
materials, parts or other goods supplied by third parties and therefore, the
Company believes the inability of its vendors to achieve Y2K compliance would
not have a material adverse impact on the Company.  The Company does use utility
services (electricity, telecommunication, natural gas and the like) for its
offices, and interruption of these services could have a material adverse impact
on the Company's operations.  The inability of the Company's clients to achieve
Y2K compliance could have an impact on their ability to pay the Company for the
services it renders to them, with consequent adverse impact on the Company's
cash flow.  Nearly all of the Company's revenue is derived from services
rendered to Fortune 1000 companies, and the Company considers it unlikely a
material number of its customers would encounter Y2K compliance issues which
would prevent them from paying the Company's invoices in a timely manner.

                                          5
<PAGE>

The Company's services addressing the Year 2000 problem involve key aspects of
its clients' computer systems.  A failure in a client's system could result in a
claim for substantial damages against the Company, regardless of the Company's
responsibility for such failure.  Litigation, regardless of its outcome, could
result in substantial cost to the Company.  Accordingly, any contract liability
claim or litigation against the Company could have an adverse effect on the
Company's business, operations and financial results.


RESULTS OF OPERATIONS

Revenues provided directly for the three months ended September 30, 1998 were
$123.4 million, an increase of 17.9 % over the same period a year ago.
Approximately 50% of this increase is the result of an increase in billed hours
and 50% from increases in hourly rates.  While the Company has been able to
increase rates over the prior year, there can be no assurance the Company will
be able to continue this as competitive conditions in the industry make it
difficult for the Company to continually increase the hourly rates it charges
for services.  Revenues provided through sub-suppliers for the three months
ended September 30, 1998 were $35.1 million, an increase of 15.1% over the same
period a year ago.  This increase in sub-supplier revenues resulted almost
exclusively from an increase in billable hours of service rendered to clients.

Personnel totalled 5,200 at September 30, 1998, compared to 4,900 at September
30, 1997, an increase of 6.1%. Substantially all of the increase consists of
billable technical staff.

Salaries, contracted services and direct charges, which represent primarily the
Company's direct labor cost, were 78.0% of revenues for the three months ended
September 30, 1998 compared to 77.4% for the same period a year ago.  By
comparison, these costs were 77.8% of revenues for the fourth quarter of fiscal
1998 and 77.9% of revenues for the fourth quarter of fiscal 1997.  The increase
in this expense category as a percentage of revenues is mostly a consequence of
the increase in business done through sub-suppliers.  The fees which the Company
pays to the sub-suppliers are higher per hour than the labor costs for its own
employees.  The Company's efforts to control these costs involve controlling
labor costs, passing on labor cost increases through increased billing rates
where possible, and maintaining productivity levels of its billable technical
staff.  Labor costs, however, are difficult to control because the highly
skilled technical personnel the Company seeks to hire and retain are in great
demand and intense competition in the industry makes it difficult to pass cost
increases on to customers, while unfavorable economic conditions could adversely
affect productivity.  Although the Company has taken steps to control this
category of expense, there can be no assurance the Company will be able to
maintain or improve this level.

Selling, administrative and other operating costs, which include commissions,
employee fringe benefits and location costs, represented 15.8% of revenues for
the three months ended September 30, 1998 compared to 16.2% for the same period
a year ago.  While the Company is committed to careful management of these
costs, there can be no assurance the Company will be able to maintain these
costs at their current relationship to revenues.

Net income for the three months ended September 30, 1998 increased 13.9% over
the same period a year ago.  As a percentage of revenue, net income has
decreased from 4.0% for the three months ended September 30, 1997 to 3.9% for
the three months ended September 30, 1998.  The Company's net income as a
percentage of revenues provided directly for the three months ended September
30, 1998 and 1997 was 5.0% and 5.1%, respectively.





                                          6
<PAGE>

PART II.  OTHER INFORMATION

     Item 6. EXHIBITS AND REPORTS ON FORM 8-K

     (a)  Exhibit 27 - Financial Data Schedule.

     (b)  There were no reports on Form 8-K filed for the three months ended
          September 30, 1998.


CAUTIONARY STATEMENT UNDER THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995

Statements included in this document may be "forward-looking statements" within
the meaning of the term in Section 27A of the Securities Act of 1933 as amended,
and of Section 21F of the Securities Exchange Act of 1934, as amended.
Additional oral or written forward-looking statements may be made by the Company
from time to time, and such statements may be included in documents that are
filed with the Securities and Exchange Commission.  Words such as "believes,"
"intends," "possible," "expects," "estimates" "anticipates," or "plans" and
similar expressions are intended to identify forward-looking statements.

Forward-looking statements are based on expectations and assumptions, and they
involve risks and uncertainties which could cause results or outcomes to differ
materially from expectations.  Among the risks and uncertainties important to
the Company's business are (i) the continued need of current and prospective
customers for the Company's services, (ii) the revewal of contracts with
customers, especially major customers, (iii) the cancellation of contracts by
customers, especially major customers, (iv), competition, (v) the availability
of qualified professional staff, (vi) the Company's ability to increase hourly
billing rates as labor and operating costs increase and (vii) the Company's
ability to continue to operate its business and support growth with internally
generated funds.  There may be other factors, such as general economic
conditions which affect businesses generally, which may cause results to vary
from expectations.



                                          7
<PAGE>

                                      SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned there unto duly authorized.

                                        ANALYSTS INTERNATIONAL CORPORATION
                                        ----------------------------------
                                                   (Registrant)




Date  November 12, 1998                 By /s/ Gerald M. McGrath
     ------------------                   ----------------------
                                         Gerald M. McGrath
                                         Treasurer and Chief Financial Officer

Date  November 12, 1998                 By /s/ Marti R. Charpentier
     ------------------                   ----------------------
                                         Marti R. Charpentier
                                         Controller and Assistant
                                         Treasurer (Chief Accounting Officer)











                                          8
<PAGE>


                                    EXHIBIT INDEX

<TABLE>
<CAPTION>
Exhibit Number                       Exhibit                   Page No.*
--------------                       -------                   ---------
<S>                      <C>                                   <C>
  27                     Financial Data Schedule                   13
</TABLE>


* Page numbers in the sequential numbering system of the manually signed
original report.