The Hackett Group, Inc. Q1 2026 Earnings Recap

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.