We prove the analog of Kostant's Theorem on Lie algebra cohomology in the context Of quantum groups. In particular, it is shown that Kostant's cohomology formula holds for quantum groups at a generic parameter q, recovering an earlier result of Malikov in the case where the underlying semisimple Lie algebra g = sl(n). We also show that Kostant's formula holds when q is specialized to an l-th root of unity for odd l >= h - 1 (where h is the Coxeter number of g) when the highest weight of the coefficient module lies in the lowest alcove. This can be regarded as an analog of results of Friedlander-Parshall and Polo-Tilouine on the cohomology of Lie algebras of reductive algebraic groups in prime characteristic.