Hackett Group (HCKT) Earnings Date & Reports

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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Earnings Context and Why It Matters

The Hackett Group, Inc. (NASDAQ: HCKT) is a Gen AI strategic consulting and digital transformation firm, and its third-quarter report is a key checkpoint on the company's transition from traditional consulting toward AI-enabled, platform-led delivery. Over the past year, revenue has declined as clients extended decision cycles while evaluating the return on investment of generative AI initiatives. Against that backdrop, investors are watching whether the company can convert efficiency gains and restructuring actions into stronger profitability. This quarter's sequential rise in adjusted earnings per share signals that the AI transition is beginning to support margins, even as the top line remains under pressure from a cautious demand environment.

Reported Results

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 top of the company's guided range of $0.37–$0.39. Non-GAAP, or non-Generally Accepted Accounting Principles, results exclude items such as stock-based compensation and restructuring costs to highlight core operating performance.

Total revenue was $69.8 million, a decline of 4.5% year over year, while revenue before reimbursements was $68.9 million, near the midpoint of the company's $68.0–$70.0 million guidance. GAAP (Generally Accepted Accounting Principles) diluted earnings per share was $0.14.

For the fourth quarter of 2026, management guided revenue before reimbursements to a range of $68.0 million to $70.0 million, reflecting an estimated 6% to 8% fewer available working days from holidays and vacation. Adjusted diluted earnings per share are expected between $0.39 and $0.41, assuming a GAAP effective tax rate of 26.5%.

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Market Reaction and Investor Sentiment

The third-quarter results landed near the company's own guidance, with adjusted earnings per share at the top of the range and revenue near the midpoint. Reported figures were broadly in line with, or slightly ahead of, varying consensus estimates depending on the source. The results reinforce management's message that the AI-led operating model is beginning to drive sequential earnings improvement, though year-over-year revenue continues to contract. Investor sentiment remains focused on whether the company can sustain margin expansion and return to revenue growth as its AI platform adoption scales, with attention also turning to the fourth-quarter outlook and the impact of fewer available working days on the top line.

Forward Outlook and Key Factors to Monitor

Looking ahead, investors should watch whether The Hackett Group can build on its sequential earnings momentum. Management's fourth-quarter guidance calls for adjusted diluted earnings per share of $0.39 to $0.41, implying continued profit improvement even as revenue before reimbursements is expected to hold roughly flat at $68.0 million to $70.0 million.

A key factor to monitor is the company's AI platform adoption. The expanded use of its XT and AIX delivery platforms is intended to improve both sales and delivery productivity, and progress here will be central to sustaining margin gains. The company has also noted that a portion of its partnership pipeline, including an IBM deferral, has shifted, with management expanding alliances with partners such as ServiceNow, TCS, and Genpact to offset this.

Investors may also want to track segment performance, particularly SAP Solutions, which showed improving contribution, against ongoing softness in Global S&BT (Strategy and Business Transformation). Finally, cash flow and balance-sheet trends remain relevant: the company continued to repurchase stock and pay dividends while carrying debt on its credit facility, and management has indicated it expects operating cash flow to increase sequentially in the fourth quarter.

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