UNITED STATES
                        SECURITIES AND EXCHANGE COMMISSION
                               WASHINGTON, D.C. 20549

                                    FORM 10-Q


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

                                         OR

( )   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
        OF THE SECURITIES EXCHANGE ACT OF 1934.
         For the Transition period from ______ to ______

                 
                          Commission File Number 0-27280

                                  META Group, Inc.
            (Exact name of registrant as specified in its charter)


                Delaware                               06-0971675
       ----------------------------         --------------------------------
     (State or other jurisdiction of        (IRS Employer Identification No.)
      incorporation or organization) 
 

                  208 Harbor Drive, Stamford, Connecticut  06912-0061
                 -----------------------------------------------------
              (Address of principal executive offices, including Zip Code)


                                 (203) 973-6700
                                 ---------------
               (Registrant's telephone number, including area code)

                         ____________________________

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 (or for such shorter period that the 
registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.

     Yes	(x)      No	( )

Indicate the number of shares outstanding of each of the issuer's classes of 
common stock, as of the latest practicable date: The number of shares of the 
issuer's Common Stock, $.01 par value per share, outstanding as of
July 31, 1998 was 11,338,212.

                   Total Number of Pages:    18
                   Exhibit Index is on Page  16

(PAGE)

                           META Group, Inc.


                                INDEX
                                -----

                                                                     Page
                                                                     ----

Part I   FINANCIAL INFORMATION

         Item 1. Financial Statements

         Balance Sheets:
           June 30, 1998 (unaudited) and December 31, 1997              3

         Statements of Income (unaudited):
           Three months ended June 30, 1998 and 1997                    4
           Six months ended June 30, 1998 and 1997

         Statements of Cash Flows (unaudited):
           Six months ended June 30, 1998 and 1997                      5

         Notes to Financial Statements                                  6


         Item 2. Management's Discussion and Analysis of Financial 
                 Condition and Results of Operations                    7


Part II  OTHER INFORMATION

         Item 1. Legal Proceedings                                     13

         Item 4. Submission of Matters to a Vote of Security Holders   13

         Item 5. Other Information                                     14

         Item 6. Exhibits and Reports on Form 8-K                      14

Signature                                                              15

<PAGE> 3

<TABLE>
<CAPTION>

PART I - FINANCIAL INFORMATION

       Item 1.	Financial Statements


                                META Group, Inc.

                                 BALANCE SHEETS
                                 (in thousands)


                                                 June 30,       December 31,
______________________________________________________________________________
Assets                                              1998               1997
                                          -------------------------------------
<S>                                              <C>               <C>
Current assets:                                  (unaudited)
  Cash and cash equivalents                       $10,994           $12,910
  Marketable securities                            23,327            23,700
  Accounts receivable, net                         22,562            26,302
  Other current assets                              5,037             3,967
                                                  -------           -------
    Total current assets                           61,920            66,879

Marketable securities                              10,313             4,046
Furniture and equipment, net                        3,278             2,765
Deferred tax asset                                  5,384             7,759
Other assets                                        9,160             8,004
                                                  -------           -------
     Total assets                                 $90,055           $89,453
                                                  =======           =======

Liabilities and Stockholders' Equity
Current liabilities:
  Accounts payable and accrued expenses           $ 2,158           $ 4,917
  Deferred revenues                                27,926            29,136
                                                  -------           -------
     Total current liabilities                     30,084            34,053
                                                  -------           -------
Stockholders' equity:
  Preferred stock                                      --                --
  Common stock                                        119               118
  Paid-in capital                                  50,898            49,943
  Retained earnings                                 9,274             5,659
  Treasury stock, at cost                            (320)             (320)
                                                  -------           -------
     Total stockholders' equity                    59,971            55,400
                                                  -------           -------
     Total liabilities and stockholders' equity   $90,055           $89,453
                                                  =======           =======

                           See notes to financial statements.
</TABLE>

<PAGE>  4
<TABLE>
<CAPTION>
                                 META Group, Inc.

                                STATEMENTS OF INCOME
                       (in thousands, except per share data)
                                    (unaudited)


                            For the three months ended  For the six months ended
                                       June 30,                   June 30,
______________________________________________________________________________
                                    1998       1997           1998        1997
                                  --------   --------       --------    --------
<S>                               <C>       <C>             <C>        <C>
Revenues:
 Continuous services              $13,347    $9,846         $26,319    $19,018
 Other, principally consulting
  and publications                  3,113     1,892           5,283      3,531
                                  -------   -------         -------    -------
    Total revenues                 16,460    11,738          31,602     22,549
                                  -------   -------         -------    -------
Operating expenses:
 Cost of services and fulfillment   7,857     5,838          15,395     11,370
 Selling and marketing              4,050     2,770           7,496      5,111
 General and administrative         1,437     1,199           2,957      2,357
 Depreciation and amortization        453       366             900        699
                                  -------   -------         -------     ------
    Total operating expenses       13,797    10,173          26,748     19,537
                                  -------   -------         -------    -------
Operating income                    2,663     1,565           4,854      3,012

Interest income                       677       501           1,282        966
                                  -------   -------         --------   -------

Income before provision for 
 income taxes                       3,340     2,066           6,136      3,978

Provision for income taxes          1,373       868           2,521      1,673
                                  -------    ------         -------    -------

Net income                        $ 1,967   $ 1,198         $ 3,615    $ 2,305
                                  =======   =======         =======    =======

Net income per diluted 
 common share                     $   .16   $   .10         $   .29    $   .19
                                  =======   =======         =======    =======

Weighted average number of 
 diluted common shares outstanding 12,570    11,970          12,444     11,853
                                  =======   =======         =======    =======

Net income per basic common share $   .17   $   .11         $   .32    $   .22
                                  =======   =======         =======    =======

Weighted average number of 
 basic common shares outstanding   11,261    10,976          11,212     10,585
                                  =======   =======         =======    =======

</TABLE>
                           See notes to financial statements.


<PAGE>  5
<TABLE>
<CAPTION>

                                 META Group, Inc.

                            STATEMENTS OF CASH FLOWS
                                 (in thousands)
                                   (unaudited)


                                                      For the six months ended
                                                               June 30,
______________________________________________________________________________
                                                          1998            1997
                                                      ________________________
<S>                                                    <C>             <C>
Operating activities:
Net income                                              $3,615          $2,305
Adjustments to reconcile net income to net cash 
 provided by operating activities:
Depreciation and amortization                              900             699
Deferred income taxes                                    2,375           1,673
Changes in assets and liabilities:
 Accounts receivable                                     3,740           3,509
 Other current assets                                   (1,070)           (418)
 Other assets                                             (587)            (81)
 Accounts payable and accrued expenses                  (2,759)          (3030)
 Deferred revenues                                      (1,210)           (838)
                                                        ------          ------
Net cash provided by operating activities                5,004           3,819
                                                        ------          ------

Investing activities:
 Capital expenditures                                   (1,413)           (979)
 Investments in marketable securities                   (5,894)         (3,437)
 Investments and advances                                 (569)           (698)
                                                        ------          ------
 Net cash used in investing activities                  (7,876)         (5,114)
                                                        ------          ------

Financing activities:
 Proceeds from exercise of stock options                   788             349
 Proceeds from employee stock purchase plan                168             148
                                                        ------           ------

Net cash provided by financing activities                  956             497
                                                        ------           ------ 

Net decrease in cash and cash equivalents               (1,916)           (798)
Cash and cash equivalents, beginning of period          12,910          19,335
                                                        ------          ------
Cash and cash equivalents, end of period               $10,994         $18,537
                                                       =======         =======
<TABLE/>

                        See notes to financial statements.

<PAGE>  6

                               META Group, Inc.

                     NOTES TO FINANCIAL STATEMENTS

Note 1 - Interim Financial Statements
_____________________________________

   The accompanying unaudited interim financial statements have been prepared
in accordance with generally accepted accounting principles for interim 
financial information and pursuant to the rules and regulations of the
Securities and Exchange Commission for reporting on Form 10-Q. Accordingly, 
certain information and footnote disclosures required for complete financial 
statements are not included herein. It is recommended that these financial 
statements be read in conjunction with the financial statements and related 
notes of META Group, Inc. (the "Company") as reported on the Company's 
Annual Report on Form 10-K for the year ended December 31, 1997. In the 
opinion of management, all adjustments (consisting of normal recurring
adjustments) considered necessary for a fair presentation of financial 
position, results of operations and cash flows at the dates and for the 
periods presented have been included. Results for interim periods are not
necessarily indicative of results for the entire year.

Note 2 - Income Taxes
_____________________

   During the quarter and six months ended June 30, 1998, the Company 
recorded a tax provision of $1.4 million and $2.5 million, respectively, 
reflecting an effective tax rate of 41%. The Company's effective tax rate
has declined from 42% in the quarter and six months ended June 30, 1997, 
due to the continued expansion of business in states with lower income tax 
rates. The Company was not required to pay federal income tax due to the 
utilization of net operating loss carryforwards. The total deferred tax 
asset, including the current portion (included in "Other current assets"),
decreased to $6.9 million at June 30, 1998 from $9.2 million at December 31, 
1997 as the Company utilized its net operating loss carryforwards to offset 
taxable income.

Note 3 - Stock Dividend
________________________

   On April 27, 1998, the Company's Board of Directors authorized a 
three-for-two stock split of the Company's Common Stock, which was effected 
in the form of a 50% stock dividend paid on June 11, 1998 to shareholders of 
record on May 22, 1998. All share and per share amounts have been 
retroactively restated for all periods presented to reflect the stock split.
Accordingly, approximately $40,000 was transferred from paid-in capital to 
common stock.

Note 4 - Subsequent Event
_________________________

   On July 31, 1998, the Board of Directors approved a Long-Term Incentive 
Compensation Plan with a significant retention feature for key management 
employees. The Plan will be funded with potential returns from a commitment 
by the Company to invest up to $4.0 million in a venture capital fund managed 
by JMI Associates, which will co-invest with other JMI venture funds. In 
addition, a JMI affiliate concurrently became a full-service client of the 
Company. Harry Gruner, a director of the Company, is a managing member of the
general partner of JMI Equity Fund III, L.P.

<PAGE>  7

Item 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
         CONDITION AND RESULTS OF OPERATIONS

   The discussion and analysis below contains trend analysis and other 
forward-looking statements. Actual results could differ materially from those
projected in the forward-looking statements as a result of the risk factors 
set forth below under "Certain Factors That May Affect Future Results" and 
in the Company's other filings with the Securities and Exchange Commission, 
principally the Company's Annual Report on Form 
10K for the year ended December 31, 1997.

Overview

   META Group is an independent market assessment company providing research 
and analysis of developments, trends and organizational issues relating to 
the computer hardware, software, communications, and related information 
technology ("IT") industries to IT users and vendors. IT user organizations 
utilize META Group's research, analysis and recommendations to develop and 
employ cost-effective strategies for selecting and implementing timely IT 
solutions and for aligning these solutions with business priorities. IT 
vendors use META Group's services for help in product positioning, marketing 
and market planning, as well as for internal IT decision making.

   Continuous Services subscriptions, which are annually renewable contracts 
and generally payable by clients in advance, comprised approximately 81% and 
84% of the Company's total revenues for the quarters ended June 30, 1998 and 
1997, respectively. Billings attributable to the Company's Continuous 
Services are initially recorded as deferred revenues and then recognized pro 
rata over the contract term. The Company's other revenues are derived from 
project consulting, benchmarking, conferences, speaker engagement fees and 
publications. The Company's consulting clients typically consist of Continuous
Services clients seeking additional advice tailored to their individual IT 
requirements.

   One measure of the volume of the Company's business is its annualized 
"Contract Value," which the Company calculates as the aggregate annualized 
subscription revenue recognized from all Continuous Services contracts in 
effect at a given point in time, without regard to the remaining duration of 
such contracts. While Contract Value is not necessarily indicative of future 
revenues, Contract Value has grown, sequentially and year-over-year, every 
quarter since the Company's inception and increased 36% to $53.4 million at 
June 30, 1998 from $39.4 million at June 30, 1997. At June 30, 1998, the 
Company had 3,660 Continuous Services subscribers in approximately 1,600 
client organizations worldwide, as compared to 2,930 subscribers in 1,300 
organizations at June 30, 1997. Continuous Services revenues attributable to 
international clients are billed and collected by the Company's international
sales representative organizations. The Company realizes revenues from the
international sales representative organizations at rates of 40% to 60% of 
amounts billed to those clients. 

   The Company's operating expenses consist of cost of services and 
fulfillment, selling and marketing expenses and general and administrative 
expenses. Cost of services and fulfillment represents the costs associated 
with production and delivery of the Company's products and services and 
includes the costs of research, development and preparation of periodic 
reports, analyst telephone consultations, executive briefings and 
conferences, publications, consulting services, new product development, 
and all associated editorial and support services. Selling and marketing 
expenses include the costs of salaries, commissions and related benefits for 
such personnel, travel and promotion. General and administrative expenses 
include the costs of the finance and accounting departments, legal, human 
resources, corporate IT and other administrative functions of the Company.

<PAGE>  8

THREE MONTHS ENDED JUNE 30,1998 AND 1997

TOTAL REVENUES  Total revenues increased 40% to $16.5 million in the quarter 
ended June 30, 1998 from $11.7 million in the quarter ended June 30, 1997. 
Revenues from Continuous Services increased 36% to $13.3 million in the 
quarter ended June 30, 1998 from $9.8 million in the quarter ended June 30, 
1997. The increases in revenues from Continuous Services were primarily due 
to continued expansion of the Company's domestic sales force, continued 
expansion of the Company's international business, and the recognition of 
revenue from the Company's three Continuous Services launched in the first 
quarter of 1997, particularly Enterprise Architecture Strategies Service 
("EAS"). The Company increased Contract Value 36% to $53.4 million at 
June 30, 1998 from $39.4 million at June 30, 1997. The Company grew its
subscriber client base 25% to 3,660 Continuous Service clients at June 30, 
1998 from 2,930 clients at June 30, 1997.

   Other revenues, consisting principally of revenues from consulting and 
publications, increased 65% to $3.1 million in the quarter ended June 30, 
1998 from $1.9 million in the quarter ended June 30, 1997, and increased as 
a percentage of total revenues to 19% from 16%. The increase in Other 
Revenues was primarily attributable to continued expansion of META Group 
Consulting activities. Other Revenues grew at a faster rate than Continuous 
Services revenue principally due to continued expansion of existing 
consulting practices and the hiring of new consulting professionals.

   Continuous Services revenues attributable to international clients 
increased 69% in the quarter ended June 30, 1998 from the quarter ended 
June 30, 1997, and increased as a percentage of Continuous Services revenue 
to 13% from 10%. The increase was due principally to continued expansion of 
the Company's international business, the successful international launch of 
the EAS service, and, to a lesser extent, the expansion in the total number 
of sales representative organizations. The Company has independent sales 
representation in 30 countries as of June 30, 1998, compared to 25 countries
as of June 30, 1997. The Company expects that international revenues will 
continue to account for a significant portion of its total revenues.

COST OF SERVICES AND FULFILLMENT  Cost of services and fulfillment increased 
35% to $7.9 million in the quarter ended June 30, 1998 from $5.8 million in 
the quarter ended June 30, 1997 principally due to increased staffing for 
analyst and fulfillment positions and related compensation expense. Cost of
services and fulfillment decreased as a percentage of total revenues to 48% 
from 50%. This decrease primarily reflects the increase in the Company's 
client/analyst ratio for all Continuous Services, which increased to 44-to-1 
at June 30, 1998, as compared to a ratio of 40-to-1 at June 30, 1997. While 
the Company anticipates continuing increases in the costs of services and 
fulfillment, it expects that such expenses as a percentage of sales will 
remain approximately the same.

SELLING AND MARKETING EXPENSES  Selling and marketing expenses increased 46% 
to $4.1 million in the quarter ended June 30, 1998 from $2.8 million in the 
quarter ended June 30, 1997 and increased as a percentage of total revenues 
to 25% from 24%. The increase in expenses was principally due to increased 
marketing expenditures, sales-related compensation expense associated with 
increased domestic revenues, and expansion of the direct marketing sales
channel for publications. The increase in expense as a percent of sales was 
principally attributable to additional international travel and market 
development (primarily related to the establishment of a European fulfillment
center) associated with expanding the Company's international revenue this 
quarter. While the Company anticipates continuing increases in the amount of 
selling and marketing expenses, it expects that such expenses as a percentage
of total revenues will decrease slightly.

<PAGE>  9

GENERAL AND ADMINISTRATIVE EXPENSES  General and administrative expenses 
increased 20% to $1.4 million in the quarter ended June 30, 1998 from 
$1.2 million in the quarter ended June 30, 1997 and decreased as a percentage
of total revenues to 9% from 10%. The increase in expenses was principally
due to increased benefits costs, legal and accounting fees. The Company 
anticipates continuing increases over the prior year in the amount of general
and administrative expenses and expects such expenses to remain relatively 
constant as a percentage of total revenues.

DEPRECIATION AND AMORTIZATION  Depreciation and amortization expense 
increased 24% to $453,000 in the quarter ended June 30, 1998 from $366,000 in
the quarter ended June 30, 1997. The increase in depreciation and 
amortization expense was principally due to purchases of computer equipment,
leasehold improvements, and office furniture required to support business
growth.

INTEREST INCOME  Interest income increased 35% to $677,000 in the quarter 
ended June 30, 1998 from $501,000 in the quarter ended June 30, 1997 due to 
an increase in the Company's cash and marketable securities balances, which 
resulted from a positive cash flow from operations during 1997 and the first 
half of 1998. In addition, the Company benefited from the reinvestment of a 
portion of its cash into short-term, higher yield marketabe securities. 
(See "Liquidity and Capital Resources.")

PROVISION FOR INCOME TAXES  Provision for income taxes of $1.4 million was 
recorded for the quarter ended June 30, 1998, as compared to a provision of 
$868,000 recorded for the quarter ended June 30, 1997, reflecting an 
effective tax rate of 41% and 42%, respectively. The Company's effective tax 
rate has declined due to the continued expansion of business in states with 
lower income tax rates. The Company was not required to pay federal income 
tax in either quarter due to the utilization of net operating loss 
carryforwards. Total deferred tax asset, including the current portion, 
decreased to $6.9 million at June 30, 1998 from $9.2 million at 
December 31, 1997 as a result of utilizating existing net operating loss 
carryforwards to offset taxable income. Due to the likelihood of the 
continued utilization of such net operating loss carryforwards, the Company 
does not anticipate having to pay federal income taxes in the next twelve 
months.

EARNINGS PER SHARE  Diluted EPS increased to $.16 per common share for the 
second quarter of 1998 as compared to $.10 for the second quarter of 1997 as 
a result of increased net income. For the quarter ended June 30, 1998, the 
Company's weighted average number of diluted common shares outstanding were 
approximately 12,570,000 shares.

SIX MONTHS ENDED JUNE 30, 1998 AND 1997

TOTAL REVENUES  Total revenues increased 40% to $31.6 million in the six  
months ended June 30, 1998 from $22.5 million in the six months ended 
June 30, 1997. Revenues from Continuous Services increased 38% to $26.3 
million in the six months ended June 30, 1998 from $19.0 million in the six
months ended June 30, 1997. The increases in total revenues and revenues from
Continuous Services were primarily due to continued expansion of the 
Company's domestic sales force, recognition of revenue from the Company's 
three Continuous Services launched in the first quarter of 1997, 
particularly, EAS, and the growth in international Continuous Services.

<PAGE>  10

   Other Revenues increased 50% to $5.3 million in the six months ended 
June 30, 1998 from $3.5 million in the six months ended June 30, 1997, and 
increased as a percentage of total revenues to 17% from 16%. The increase in 
Other Revenues was primarily attributable to the expansion of META Group
Consulting activities.
  	
   Continuous Services Revenues attributable to international clients 
increased 64% in the six months ended June 30, 1998 from the six months 
ended June 30, 1997, and increased as a percentage of Continuous Services 
revenues to 13% from 11%. The increase was due principally to continued 
expansion of the Company's international business, the successful 
international launch of the EAS service, and the expansion in the total 
number of sales representative organizations.

COST OF SERVICES AND FULFILLMENT  Cost of services and fulfillment increased 
35% to $15.4 million in the six months ended June 30, 1998 from $11.4 million
in the six months ended June 30, 1997 principally due to increased staffing 
for analyst and fulfillment positions and related compensation expense. Cost 
of services and fulfillment decreased as a percentage of total revenues to 
49% from 50%, primarily due to the increase in the Company's client/analyst 
ratio for all Continuous Services, which increased 44-to-1 at June 30, 1998,
as compared to a ratio of 40-to-1 at June 30, 1997.

SELLING AND MARKETING EXPENSES  Selling and marketing expenses increased 47% 
to $7.5 million in the six months ended June 30, 1998 from $5.1 million in 
the six months ended June 30, 1997 and increased as a percentage of total 
revenues to 24% from 23%. The increase in expenses was principally due to 
increased sales-related compensation expense associated with increased 
domestic revenues and the expansion of the direct marketing sales channel 
for publications, as well as increased marketing and conference promotion 
expenses.

GENERAL AND ADMINISTRATIVE EXPENSES  General and administrative expenses 
increased 25% to $3.0 million in the six months ended June 30, 1998 from 
$2.4 million in the six months ended June 30, 1997 and decreased as a 
percentage of total revenues to 9% from 10%. The increase in expenses was
principally due to increased benefits costs, facilities expense, professional
development and legal expenses.

DEPRECIATION AND AMORTIZATION  Depreciation and amortization expense 
increased 29% to $900,000 in the six months ended June 30, 1998 from 
$699,000 in the six months ended June 30, 1997. The increase in depreciation 
and amortization expense was principally due to purchases of computer
equipment and office furniture required to support business growth.

INTEREST INCOME  Interest income increased 33% to $1.3 million in the 
six months ended June 30, 1998 from $966,000 in the six months ended 
June 30, 1997 due to an increase in the Company's cash and marketable 
securities balances resulting from a positive cash flow from operations 
during 1997 and the first half of 1998.

PROVISION FOR INCOME TAXES  Provision for income taxes of $2.5 million was 
recorded for the six months ended June 30, 1998, as compared to a provision 
of $1.7 million recorded for the six months ended June 30, 1997, reflecting 
an effective tax rate of 41% and 42%, respectively. The Company was not
required to pay federal income tax in either quarter due to the utilization 
of net operating loss carryforwards.

EARNINGS PER SHARE  Diluted EPS increased to $.29 per common share for the 
first half of 1998 as compared to $.19 for the first half of 1997 as a 

<PAGE> 11

result of increased net income. For the six months ended June 30, 1998, the 
Company's weighted average number of diluted common shares outstanding were
approximately 12,444,000 shares.

LIQUIDITY AND CAPITAL RESOURCES

   The Company generated $5.0 million of cash from operations during the
six months ended June 30, 1998, compared with $3.8 million of cash generated
from operations in the six months ended June 30, 1997. The increase in cash 
generated from operations in 1998 is primarily due to increased net income 
and the collection of the December 31, 1997 accounts receivable, partially 
offset by payment of employee bonuses in the first half of 1998. 

   The Company used $1.4 million of cash in the six months ended June 30, 
1998, compared with $979,000 in the six months ended June 30, 1997, for the 
purchase of furniture, equipment, computers and related software for use by 
the Company's employees. The Company expects that additional purchases of
equipment will be made as the Company's employee base continues to grow. 
As of June 30, 1998, the Company had no material commitments for capital 
expenditures; however, the Company is currently planning a significant 
upgrade of internal systems within the next twelve months. The total cash 
outlay for the project is not expected to exceed $1.0 million.

   The Company regularly invests excess funds in investment-grade, short-term
commercial paper, debt instruments, and money market funds. As these 
investments generally have terms of less than three months, they are 
included under the caption "Cash and cash equivalents" in the balance sheets.

   In addition, the Company invests in other short-term (less than one-year 
maturity), high quality investment grade marketable debt securities. 
Generally, these securities are purchased in denominations of $1 million
to $5 million and held to maturity.

   As of June 30, 1998, the Company had cash and cash equivalents of 
$11.0 million, marketable securities of $33.6 million and working capital 
of $31.8 million. The Company believes that existing cash balances and 
anticipated cash flows from operations will be sufficient to meet its 
working capital and capital expenditure requirements for the forseeable 
future.

Impact of the Year 2000 Issue

   The Company has commenced efforts to ensure that the computer systems
and applications upon which it relies for internal operations and external
communications with clients and others will function properly beyond 1999.  
The Company presently believes that the computer systems and programs upon 
which it relies for its internal operations and external communications are 
Year 2000 compliant. There can be no assurance, however, that further 
assessment of the Company's internal systems and applications will not 
indicate that additional efforts to assure Year 2000 compliance are 
necessary, and such efforts may be costly and may divert the Company's 
resources from other product development or infrastructure improvement 
programs. Further, there can be no assurance that the systems operated by 
other companies upon which the Company relies will be Year 2000 complaint on 
a timely basis. The Company's business, financial condition or results of
operations could be materially adversely affected by the failure of the 
Company's internal systems and applications to properly operate or manage 
data beyond 1999.

<PAGE>  12

CERTAIN FACTORS THAT MAY AFFECT FUTURE RESULTS

   The Company does not provide forecasts of the future financial performance
of the Company. However, from time to time, information provided by the 
Company or statements made by its employees may contain "forward-looking" 
information that involve risks and uncertainties. In particular, statements
contained in this Form 10-Q that are not historical facts (including, but not
limited to, statements concerning international revenues, anticipated 
operation expense levels, expense levels relative to the Company's total 
revenues, net operating loss carryforwards, and planned capital expenditures)
constitute forward-looking statements and are made under the safe harbor 
provisions of the Private Securities Litigation Reform Act of 1995. The 
Company's actual results of operations and financial condition have varied 
and may in the future vary significantly from those stated in any 
forward-looking statements. Factors that may cause such differences include, 
without limitation, the risks, uncertainties and other information discussed 
below, as well as the accuracy of the Company's internal estimates of revenue
and operation expense levels. Each of these factors, and others, are 
discussed from time to time in the filings made by the Company with the 
Securities and Exchange Commission.

   The Company's future operating results are subject to substantial 
risks and uncertainties. The Company currently derives most of its revenues 
from subscriptions to its Continuous Services. As a result, any decline in 
the Company's ability to secure subscription renewals may have a material 
adverse effect on the Company's results of operations. The Company's ability 
to secure subscription renewals, at favorable average selling prices, as well
as to successfully market and sell its consulting services, is dependent upon
the Company's ability to deliver consistent, high-quality and timely analysis
and advice with respect to issues, developments and trends that clients view 
as important. The Company's successful delivery of such analysis and advice 
is, in turn, dependent upon many factors, including, among other things: its 
ability to recruit and retain highly talented professionals in a competitive 
job market, to understand and anticipate rapidly changing technologies and 
market trends so as to keep its analysis focused on the changing needs of
its clients, and to deliver products and services of sufficiently high 
quality and timeliness to withstand competition from competitors which may 
have greater financial, information gathering and marketing resources than 
the Company. The Company's ability to market and sell its products and 
services could also be adversely affected by the emergence of new competitors
into one or more of the market segments addressed by the Company's products 
and services, which could cause pricing pressure and loss of market share. 
In addition, a significant portion of the Company's revenues are attributable
to international clients, which may be adversely affected by factors 
including difficulties in developing and managing relationships with 
independent international sales representative organizations, reliance on 
sales entities which the Company does not control, greater difficulty in 
maintaining direct client contact, fluctuations in exchange rates, adverse 
political and economic conditions, tariffs and other trade barriers, longer 
accounts receivable collection cycles and adverse tax consequences. The 
Company's future financial results also depend in part on the development or
acquisition of new products and services, which may not successfully be 
achieved due to the inherent costs and risks associated with development, 
assimilation and marketing of a new product or service, as well as the 
Company's limited experience in introducing new products and services.

   Furthermore, the Company's quarterly operating results may fluctuate 
significantly due to various factors. Since a disproportionately large 
portion of the Company's Continuous Services contracts expire in the 
fourth quarter of each year, the Company incurs operating expenses in the 
fourth quarter at a higher level than would otherwise be required by its 
sequential growth, and such increased expenses are not normally offset 
immediately by higher revenues. In addition, the Company's operating results 
may fluctuate as a result of a variety of other factors, including the level 
and timing of renewals of subscriptions to Continuous Services, the timing 
and amount of business generated by the Company, the mix of domestic versus 
international business, the timing of the development, introduction and 
marketing of new products and services, the timing of the acquisition and 

<PAGE>  13

integration into the Company of new business, products and services, the 
timing of the hiring of research analysts and consultants, the cost of 
addressing, or the failure to address, the ability of the Company's 
computer systems and applications to function properly beyond 1999, changes 
in the spending patterns of the Company's target clients, the Company's 
accounts receivable collection experience, changes in market demand for IT 
research and analysis, and competitive conditions in the industry. Due to 
these factors, the Company believes period-to-period comparisons of results 
of operations are not necessarily meaningful and should not be relied upon 
as an indication of future results of operations. The potential fluctuations 
in the Company's operating results make it likely that, in some future 
quarter, the Company's operating results will be below the expectations of 
securities analysts and investors, which would have a material adverse effect
on the price of the Company's Common Stock.

PART II - OTHER INFORMATION

Item 1.   Legal Proceedings.
          -----------------

   As disclosed in the Company's Annual Report on Form 10-K for the year 
ended December 31, 1997, in November, 1995, a complaint was filed in the 
Bridgeport Judicial District of the Superior Court of Connecticut by a 
former consultant to the Company naming the Company and its Chief Executive 
Officer as defendants. Subsequent to June 30, 1998, the Company and its 
Chief Executive Officer reached a settlement with the former consultant in
which the suit was dismissed with prejudice. The settlement did not have a 
material effect on the financial statements of the Company.

   The Company is a party to certain other legal proceedings. However, the 
Company believes that none of these proceedings is likely to have a material 
adverse effect on the Company's business, results of operations or financial 
condition.

Item 4.   Submission of Matters to a Vote of Security Holders.
          ---------------------------------------------------
   
   On May 27, 1998, the Company held its Annual Meeting of Stockholders. 
At such Annual Meeting the stockholders of the Company voted on the election 
of two Class III Directors to serve for a three-year term and until their 
successors have been duly elected and qualified. The number of votes cast 
for the re-election of each of the Class III Directors listed below was as 
follows:


Nominees                                  Number of Shares
--------                                  ----------------

                                     For            Withhold Authority
                                     ---            ------------------
George McNamee                    6,780,201               89,149
Michael Simmons                   6,836,400               32,950


Each of Dale Kutnick, Francis J. Saldutti, Marc Butlein and Harry S. Gruner 
continued as Directors of the Company after the Annual Meeting of 
Stockholders. 

   The amendment and restatement of the Corporation's 1995 Stock Plan 
(the "Amended and Restated 1995 Plan") to (i) increase the number of shares 
of Common Stock of the Company issuable over the term of the Plan by 
1,500,000 shares to 3,000,000 shares in the aggregate and (ii) extend the 
exercise period after death from 180 days to one year for "incentive" stock 

<PAGE>  14

options granted after the date the stockholders of the Corporation approve 
the Amended and Restated 1995 Plan was adopted and approved with 4,408,500 
shares voting in favor, 2,001,303 shares voting against, 5,621 shares 
abstaining and 453,876 shares counted as unvoted.


Item 5.   Other Information.
          -----------------

   The Company's By-laws establish an advance notice procedure with regard 
to stockholder proposals not included in the Company's proxy statement.  
In general, proposals of stockholders intended for inclusion in the proxy 
statement to be furnished to all stockholders entitled to vote at the next 
Annual Meeting of Stockholders of the Corporation must be received at the 
Corporation's principal executive offices not later than December 11, 1998 
nor earlier than November 11, 1998 and contain certain specified information.
In order to curtail controversy as to the date on which a proposal was 
received by the Corporation, it is suggested that proponents submit their 
proposals by certified mail, return receipt requested to META Group, Inc., 
208 Harbor Drive, Stamford, Connecticut 06912-0061, Attention: Secretary.


Item 6.	Exhibits and Reports on Form 8-K.
        ---------------------------------

        (a) Exhibits.

         Exhibit
         Number                Description
         -------               -----------
         11.1                  Statement re-computation of per-share earnings
         27.1                  Financial Data Schedule

        (b) Reports on Form 8-K.


   On June 12, 1998, the Company filed a Current Report on Form 8-K 
announcing that the Company effected a three-for-two stock split in the form 
of a 50% stock dividend paid on June 11, 1998 to stockholders of record 
on May 22, 1998.

<PAGE>  15

                                SIGNATURE



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 thereunto duly authorized.



                                META Group, Inc.




Date: August 14, 1998           By: /s/ Bernard F. Denoyer
                                    -----------------------
                                    Bernard F. Denoyer
                                    Senior Vice President, Finance, Chief
                                    Financial Officer, Secretary and Treasurer
                                   (Principal Financial and Accounting Officer)

<PAGE>  16

                                   EXHIBIT INDEX


                                                                Sequentially
Exhibit                                                            Numbered
Number                              Description                      Page
_______     __________________________________________________   _____________

11.1        Statement re computation of per-share earnings            17
27.1        Financial Data Schedule                                   18


__________________


<PAGE>  17


EXHIBIT 11.1


</TABLE>
<TABLE>
<CAPTION>

                                META Group, Inc.
 
                      EXHIBIT TO ANNUAL REPORT ON FORM 10-Q

                    Computation of Net Income Per Common Share


                           For the three months ended 	For the six months ended
                                      June 30,                 June 30,
_______________________________________________________________________________
                                     1998       1997          1998       1997
                                  ______________________  ______________________

<S>                             <C>          <C>         <C>         <C>                      
Net income....................    $1,967,000  $1,198,000  $3,615,000  $2,305,000
                                  ==========  ==========  ==========  ==========

Weighted average number of common 
  and common equivalent shares 
   outstanding:

Common shares
  outstanding during the period  11,261,272  10,975,694   11,211,746  10,584,765

Common share equivalents
   -- options to purchase common 
       shares                     1,308,283     994,127    1,232,257   1,267,983
                                 ----------  ----------   ----------  ----------
          Total                  12,569,555  11,969,820   12,444,003  11,852,748
                                 ==========  ==========   ==========  ==========

Net income per diluted
  common share                      $.16        $.10        $.29        $.19
                                    ====        ====        ====        ====
Net income per basic 
  common share                      $.17        $.11        $.32        $.22
                                    ====        ====        ====        ====


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17

17



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