Hackett Group, Inc. (HCKT) · Nov 3, 2026 · Earnings
Beat — Adjusted EPS $0.39 vs ~$0.37–$0.38 consensus
Hackett Group’s Q3 earnings narrowly beat consensus, with stronger profit and margins offsetting another year-over-year revenue decline.
The Hackett Group is midway through an AI transition, repositioning its consulting and implementation business around proprietary AI platforms and enterprise-transformation expertise. The filing shows the first measurable payoff is appearing in productivity and profitability, but not yet in overall demand; published estimates had called for roughly $68.7 million of revenue and $0.37–$0.38 of adjusted EPS.
| Metric | Q3 2026 | Q3 2025 | Consensus / guide |
|---|---|---|---|
| Revenue before reimbursements (Financial Highlights) | $68.9M (-4.5%) | $72.2M | ~$68.7M |
| Adjusted diluted EPS (Financial Highlights) | $0.39 (+5.4%) | $0.37 | ~$0.37–$0.38 |
| Operating income (Income Statement) | $7.5M (+37%) | $5.5M | |
| Q4 revenue guide (Business Outlook) | $68.0M–$70.0M | ||
| Q4 adjusted EPS guide (Business Outlook) | $0.39–$0.41 |
Profit beat despite a shrinking top line. Adjusted EPS reached $0.39, the high end of the company’s prior range, narrowly ahead of consensus, while operating income rose sharply as personnel and selling costs fell. The reported result was helped by lower stock-award and restructuring charges, but the core margin improvement is still meaningful. 〔0〕
The demand picture remains uneven. Revenue before reimbursements declined 4.5% year over year, driven mainly by Global S&BT revenue falling to $36.6 million from $42.4 million. SAP Solutions was the clear growth engine, rising to $16.4 million from $13.4 million, while Oracle Solutions was roughly flat. That means the AI transition is improving economics before it has visibly returned the consolidated business to growth.
Management is carrying the productivity story into 2027, but the evidence is still early. The company says wider use of its XT and AIX platforms is beginning to improve sales and delivery productivity, and it expects operating leverage and margin expansion as adoption scales. That is a constructive shift from the prior transition narrative, but the filing provides no quantified AI-related revenue or bookings figure, so the growth thesis remains ahead of the demonstrated top-line results. 〔1〕
Cash generation and leverage are the main constraints. Cash fell to $12.6 million while credit-facility borrowings reached $86.1 million, and quarterly operating cash flow was only $1.8 million. The company expects a $15 million–$20 million sequential cash-flow improvement in Q4, with proceeds directed toward debt reduction or repurchases, making delivery against that forecast important to the balance-sheet story.
Bottom line: This was a narrow earnings beat, driven more by better efficiency and mix than by renewed demand. It modestly strengthens the AI-transition story, but the business still needs revenue stabilization to make that story durable.
Q4 2026 results and 2027 outlook
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