The Hackett Group (NASDAQ:HCKT – Get Free Report) announced its earnings results on Tuesday. The business services provider reported $0.39 EPS for the quarter, beating the consensus estimate of $0.37 by $0.02, FiscalAI reports. The Hackett Group had a return on equity of 34.77% and a net margin of 5.86%. The company had revenue of $69.79 million for the quarter, compared to analyst estimates of $68.67 million.
Here are the key takeaways from The Hackett Group’s conference call:
- Third-quarter results improved sequentially: Revenue before reimbursements rose 1% to $68.9 million, adjusted EPS reached $0.39, and adjusted gross margin increased to 44.9% from 44.1% in Q2 and 42.6% a year ago.
- AI-enabled platforms are beginning to improve operating leverage. Management cited productivity gains from XT and AIX, lower SG&A, and improved delivery economics, with the platforms expected to support more than 90% of engagements over time.
- Management expects revenue growth to resume as early as 2027. Executives believe AI-related scope expansion, higher-margin new business, and broader platform adoption can drive further margin expansion and operating leverage.
- Fourth-quarter guidance calls for relatively stable revenue but stronger margins: Revenue is expected at $68 million-$70 million, adjusted gross margin at approximately 48.5%, and adjusted EPS at $0.39-$0.41, despite fewer billing days, a 53-week fiscal year, and a roughly $0.03 EPS calendar impact.
- Demand remains subject to delayed client decisions and uneven segment performance. Clients continue to scrutinize AI ROI, SAP revenue fell 6% sequentially, fourth-quarter VAR revenue is expected to be below last year’s record level, and the company plans to record an approximately $1 million AI transition charge.
The Hackett Group Stock Up 5.4%
HCKT traded up $0.70 during trading on Wednesday, hitting $13.74. 150,269 shares of the company’s stock were exchanged, compared to its average volume of 304,770. The company has a quick ratio of 1.94, a current ratio of 1.94 and a debt-to-equity ratio of 1.19. The business’s 50 day moving average is $11.24 and its two-hundred day moving average is $12.29. The Hackett Group has a fifty-two week low of $9.15 and a fifty-two week high of $20.68. The stock has a market cap of $341.98 million, a P/E ratio of 21.01, a PEG ratio of 1.13 and a beta of 0.89.
The Hackett Group Announces Dividend
The firm also recently declared a quarterly dividend, which will be paid on Friday, January 8th. Shareholders of record on Thursday, December 24th will be paid a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date is Thursday, December 24th. The Hackett Group’s payout ratio is 73.85%.
Wall Street Analyst Weigh In
HCKT has been the topic of several recent analyst reports. Wall Street Zen raised The Hackett Group from a “hold” rating to a “buy” rating in a research note on Saturday, September 5th. Weiss Ratings restated a “sell (d+)” rating on shares of The Hackett Group in a report on Friday, October 2nd. Finally, Zacks Research raised shares of The Hackett Group from a “strong sell” rating to a “hold” rating in a research report on Monday, October 5th. One analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $16.50.
Read Our Latest Stock Analysis on The Hackett Group
Key Headlines Impacting The Hackett Group
Here are the key news stories impacting The Hackett Group this week:
- Positive Sentiment: Q3 adjusted earnings were $0.39 per share, ahead of the $0.37 consensus and up from $0.37 a year earlier. Revenue of $69.79 million also topped expectations of $68.67 million; coverage reported profit rose 37%. The beats may support investor sentiment. Hackett Group beats Q3 earnings and revenue estimates
- Positive Sentiment: The company declared a quarterly dividend of $0.12 per share, or $0.48 annualized, representing a stated yield of about 3.5%. The payout may appeal to income-focused investors.
- Neutral Sentiment: For Q4, Hackett projected revenue of $68 million–$70 million and an adjusted gross margin of about 48.5% as it transitions its AI platform. The revenue range is broadly around Q3’s level, so investors may look for evidence that the transition can support future growth and margins. Hackett Q4 revenue and margin outlook
- Negative Sentiment: Despite the earnings growth highlighted in coverage, Q3 revenue declined year over year, a sign that top-line momentum remains a concern. Hackett Group Q3 2026: Profit Rises Despite Revenue Dip
About The Hackett Group
The Hackett Group, Inc is a global business and technology consulting firm that helps organizations improve performance, transform operations and adopt digital technologies. Its services are informed by proprietary research, benchmarking data and best-practice insights across major corporate functions.
The company advises clients on finance, human resources, procurement, information technology, supply chain management and other enterprise operations. Its offerings include benchmarking and performance studies, business transformation programs, enterprise performance management, technology consulting and implementation services.
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