GET DAILY SIGNALSThe Hackett Group (HCKT) Delivers Q3 Earnings at Guidance Top Despite Revenue Dip
Key Takeaways
- Adjusted (non-GAAP) diluted earnings per share rose to $0.39, hitting the high end of the company's own $0.37–$0.39 guidance and up from $0.34 in the prior quarter.
- Total revenue was $69.8 million, down 4.5% year over year, while revenue before reimbursements came in at $68.9 million.
- The company guided fourth-quarter revenue before reimbursements to $68.0–$70.0 million and adjusted diluted EPS to $0.39–$0.41.
- The Hackett Group repurchased $2.5 million of stock, paid $3.0 million in dividends, and declared a fourth quarterly dividend of $0.12 per share.
- For more details on the company's Major News, Today's Price Move, Price Targets, and Forecast, explore Tickeron's dedicated pages for HCKT.
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Why This Quarter Matters
The Hackett Group, Inc. (HCKT) operates as a Gen AI strategic consulting and digital transformation firm. Its third-quarter results offer a useful checkpoint on the shift from traditional consulting toward AI-enabled, platform-led delivery. Revenue has softened over the past year as clients have lengthened decision cycles while assessing returns on generative AI projects. Investors are therefore focused on whether efficiency improvements and restructuring efforts can translate into better profitability. The sequential increase in adjusted earnings per share this quarter suggests the AI transition is starting to support margins, even while top-line pressure persists in a cautious demand environment.
Quarterly Results in Detail
For the third quarter of fiscal 2026, ended September 25, 2026, The Hackett Group reported adjusted (non-GAAP) diluted earnings per share of $0.39, up from $0.34 in the second quarter and at the upper end of the guided range of $0.37–$0.39. Non-GAAP results exclude items such as stock-based compensation and restructuring costs to better reflect core operations.
Total revenue reached $69.8 million, a 4.5% decline year over year, while revenue before reimbursements was $68.9 million, near the midpoint of the $68.0–$70.0 million guidance. GAAP diluted earnings per share came in at $0.14.
Management guided fourth-quarter revenue before reimbursements to $68.0 million to $70.0 million, noting an estimated 6% to 8% reduction in available working days due to holidays and vacations. Adjusted diluted earnings per share are projected between $0.39 and $0.41, based on a GAAP effective tax rate of 26.5%.
Market Response and Investor Focus
The results aligned closely with company guidance, with adjusted earnings per share at the top of the range and revenue near the midpoint. Figures were generally in line with, or modestly ahead of, consensus estimates from various sources. The outcome supports management’s view that the AI-led model is contributing to sequential earnings gains, although year-over-year revenue remains under pressure. Attention now centers on whether margin expansion can be sustained and revenue growth resumed as AI platform adoption increases, alongside scrutiny of the fourth-quarter outlook and the seasonal impact on the top line.
Looking Ahead: Factors to Watch
Investors will want to monitor whether The Hackett Group can extend its sequential earnings momentum. Fourth-quarter guidance calls for adjusted diluted earnings per share of $0.39 to $0.41, pointing to further profit improvement even as revenue before reimbursements is expected to remain roughly flat at $68.0 million to $70.0 million.
A central element to track is adoption of the company’s AI platforms. Expanded use of the XT and AIX delivery platforms aims to boost sales and delivery productivity, and progress here will be key to maintaining margin gains. Management has also highlighted shifts in the partnership pipeline, including an IBM deferral, and is broadening alliances with partners such as ServiceNow, TCS, and Genpact to compensate.
Segment trends merit attention as well, particularly improving contributions from SAP Solutions amid continued softness in Global S&BT (Strategy and Business Transformation). Cash flow and balance-sheet developments remain relevant: the company continued share repurchases and dividend payments while carrying debt on its credit facility, and management expects operating cash flow to rise sequentially in the fourth quarter. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
HCKT in upward trend: price rose above 50-day moving average on October 08, 2026
HCKT moved above its 50-day moving average on October 08, 2026 date and that indicates a change from a downward trend to an upward trend. In 22 of 31 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 71%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 01, 2026. You may want to consider a long position or call options on HCKT as a result. In 52 of 89 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 58%.
The Moving Average Convergence Divergence (MACD) for HCKT just turned positive on October 02, 2026. Looking at past instances where HCKT's MACD turned positive, the stock continued to rise in 31 of 47 cases over the following month. The odds of a continued upward trend are 66%.
The 10-day moving average for HCKT crossed bullishly above the 50-day moving average on October 13, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 7 of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 54%.
Following a +4.60% 3-day Advance, the price is estimated to grow further. Considering data from situations where HCKT advanced for three days, in 174 of 303 cases, the price rose further within the following month. The odds of a continued upward trend are 57%.
The Aroon Indicator entered an Uptrend today. In 119 of 192 cases where HCKT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 62%.
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HCKT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 64%.
HCKT broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 39 (best 1 - 100 worst), indicating steady price growth. HCKT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 50 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 64 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.758) is normal, around the industry mean (2.796). P/E Ratio (20.062) is within average values for comparable stocks, (18.242). Projected Growth (PEG Ratio) (0.613) is also within normal values, averaging (2.284). Dividend Yield (0.037) settles around the average of (0.207) among similar stocks. P/S Ratio (1.007) is also within normal values, averaging (139.965).
The Tickeron PE Growth Rating for this company is 82 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. HCKT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
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General Information
a provider of advisory, benchmarking and transformation consulting services
Industry InformationTechnologyServices
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