The Hackett Group (NASDAQ:HCKT – Get Free Report) released its quarterly earnings results on Tuesday. The business services provider reported $0.34 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.34, FiscalAI reports. The company had revenue of $68.34 million during the quarter, compared to analysts’ expectations of $68.80 million. The Hackett Group had a return on equity of 26.70% and a net margin of 4.75%. The Hackett Group updated its Q3 2026 guidance to 0.370-0.390 EPS.
Here are the key takeaways from The Hackett Group’s conference call:
- Management expects a Q3 inflection point, guiding to revenue of $68 million–$70 million and adjusted EPS of $0.37–$0.39, up approximately 11.8% sequentially at the midpoint. Adjusted gross margin is expected to improve to 46%–47%.
- The company closed several significant platform-led proposals totaling more than $30 million, with work expected to ramp through Q3 and extend into 2027. Management said platform-supported bids have produced a high win rate and improved pricing, delivery productivity, and scope.
- Hackett reported strong cash generation, with $15.2 million of operating cash flow in Q2, cash increasing to $14.2 million, $6.1 million of net debt reduction, and $4 million of share repurchases. The board also declared a quarterly dividend of $0.12 per share.
- Q2 revenue before reimbursements was slightly below the low end of guidance at $68.3 million, while Global S&BT revenue declined 2% sequentially and Oracle revenue declined 1%. The company also expects a roughly $1 million AI-transition charge in Q3 related primarily to severance and headcount reductions.
- IBM deferred its planned joint go-to-market activity, which caught management by surprise and creates uncertainty around that channel partnership. Hackett is instead relying more heavily on newer or expanding relationships with ServiceNow, TCS, Genpact, and other partners.
The Hackett Group Stock Down 2.5%
The Hackett Group stock traded down $0.28 during midday trading on Wednesday, reaching $11.01. The stock had a trading volume of 294,209 shares, compared to its average volume of 340,308. The stock has a market capitalization of $277.34 million, a P/E ratio of 20.80, a price-to-earnings-growth ratio of 0.92 and a beta of 0.92. The firm’s fifty day simple moving average is $10.67 and its 200-day simple moving average is $12.83. The company has a debt-to-equity ratio of 1.19, a quick ratio of 1.88 and a current ratio of 1.88. The Hackett Group has a 1-year low of $9.15 and a 1-year high of $21.40.
The Hackett Group Announces Dividend
Hedge Funds Weigh In On The Hackett Group
A number of large investors have recently modified their holdings of the business. Millennium Management LLC raised its stake in shares of The Hackett Group by 122.9% during the 3rd quarter. Millennium Management LLC now owns 807,457 shares of the business services provider’s stock worth $15,350,000 after purchasing an additional 445,267 shares in the last quarter. Russell Investments Group Ltd. lifted its stake in The Hackett Group by 7.0% in the fourth quarter. Russell Investments Group Ltd. now owns 429,032 shares of the business services provider’s stock valued at $8,422,000 after acquiring an additional 28,231 shares during the last quarter. Punch & Associates Investment Management Inc. grew its position in shares of The Hackett Group by 0.3% in the 3rd quarter. Punch & Associates Investment Management Inc. now owns 428,654 shares of the business services provider’s stock valued at $8,149,000 after acquiring an additional 1,253 shares during the period. Goldman Sachs Group Inc. increased its stake in shares of The Hackett Group by 123.4% during the 4th quarter. Goldman Sachs Group Inc. now owns 401,972 shares of the business services provider’s stock worth $7,891,000 after purchasing an additional 222,065 shares during the last quarter. Finally, Two Sigma Investments LP lifted its stake in The Hackett Group by 54.5% in the 3rd quarter. Two Sigma Investments LP now owns 401,852 shares of the business services provider’s stock valued at $7,639,000 after purchasing an additional 141,798 shares during the last quarter. 78.12% of the stock is currently owned by institutional investors and hedge funds.
The Hackett Group News Summary
Here are the key news stories impacting The Hackett Group this week:
- Positive Sentiment: Management projected third-quarter adjusted EPS of $0.37-$0.39, in line with the $0.38 analyst consensus, and said new AI platform wins are beginning to ramp. Hackett projects Q3 2026 adjusted EPS of $0.37-$0.39 as AI platform wins ramp
- Positive Sentiment: The board declared a quarterly dividend of $0.12 per share, payable October 2 to shareholders of record September 18. The annualized payout represents an approximately 4.6% yield based on the provided stock data. The Hackett Group Announces Second Quarter 2026 Results
- Neutral Sentiment: Second-quarter adjusted EPS was $0.34, matching estimates, while GAAP EPS increased to $0.18 from $0.06 a year earlier. Operating cash flow was solid at $15.2 million. Hackett Group Meets Q2 Earnings Estimates
- Negative Sentiment: Revenue declined to $69.3 million from $78.9 million year over year, and adjusted EPS fell from $0.38. Third-quarter revenue guidance of $68 million-$70 million is below the $73 million consensus estimate, signaling continued near-term demand pressure. Hackett Group Q2 revenue falls to $69.3 million
Wall Street Analysts Forecast Growth
A number of equities analysts recently commented on HCKT shares. Weiss Ratings restated a “sell (d+)” rating on shares of The Hackett Group in a report on Monday, July 6th. Zacks Research raised shares of The Hackett Group from a “strong sell” rating to a “hold” rating in a research note on Monday, July 6th. Roth Capital set a $17.00 price target on The Hackett Group in a research report on Wednesday, May 6th. Wall Street Zen downgraded The Hackett Group from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. Finally, Barrington Research decreased their target price on The Hackett Group from $17.00 to $16.00 and set an “outperform” rating for the company in a research report on Wednesday, May 6th. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $16.50.
Read Our Latest Stock Report on HCKT
The Hackett Group Company Profile
The Hackett Group is a global strategic advisory firm specializing in business transformation, benchmarking and research. Leveraging a proprietary data repository and the Hackett Methodology®, the company helps organizations optimize performance across enterprise functions. Its advisory services span digital transformation, process optimization and operational excellence, enabling clients to identify best practices, streamline workflows and achieve sustainable cost savings.
Through detailed benchmarking studies and industry research, The Hackett Group delivers actionable insights into finance, procurement, human resources, information technology and supply chain management.
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