The Hackett Group, Inc. Earnings Recaps
Q1 2026
May 6, 2026
Shares of The Hackett Group fell sharply by 25.5% following earnings, reflecting investor disappointment with cautious near-term demand commentary and a lack of clear revenue growth visibility amid a disruptive strategic pivot to an AI platform-enabled delivery model.
Key takeaways
- Reported Q1 revenues before reimbursements of $68.7 million and adjusted EPS of $0.34, at the low end of guidance.
- Transition to AI-enabled platforms caused headcount adjustments and lower utilization, tempering near-term margin benefits.
- Q1 project margins in U.S. Strategy & Business Transformation rose ~500 basis points due to platform leverage but offset by other costs.
- Expectation that margin improvements and revenue growth will materialize starting in Q2, with a positive inflection anticipated in Q3.
- Management flagged ongoing macroeconomic uncertainty and elongated client decision cycles driven by AI ROI questions as near-term headwinds.
Q3 2025
Nov 5, 2025
The Hackett Group's third quarter results reflected stable earnings and strong innovation, highlighted by positive reception of its AI XPLR version 4 platform, although revenue slightly fell short of guidance.
Key takeaways
- Revenues before reimbursements reached $72.2 million, below quarterly guidance, with adjusted earnings per share at $0.37, in line with expectations.
- Strong growth in the GenAI segment, but offset by weaknesses in the OneStream practice and an expired IPaaS contract.
- Strategic alliance announced with Celonis to integrate process intelligence with AI solutions, enhancing client engagement potential.
- A $40 million Dutch tender offer to repurchase approximately 8% of common stock announced, anticipated to be accretive.
- Continued focus on reducing headcount to leverage GenAI productivity benefits and align resources with market demands.