The Hackett Group (NASDAQ:HCKT) Issues Quarterly Earnings Results

Key Points

• The Hackett Group reported Q1 adjusted EPS of $0.34 (vs. $0.35 consensus) and revenue of $68.8M (below estimates), and issued Q2 EPS guidance of $0.33–0.35 which is below street expectations, signaling near‑term revenue and earnings pressure.
• Management is executing an accelerated pivot to a AI platform‑enabled "service as a product" model—leveraging proprietary platforms and an acquisition—claiming early margin improvements and partner wins (including IBM and OneStream) that should expand the pipeline over coming quarters.
• Balance‑sheet strains: cash fell to $6.1M (from $18.2M) and DSO rose to 67 days with elevated receivables, though management expects an $8M–$9M receivables reduction by Q2 end; the company maintained a quarterly dividend (annualized $0.48, payout ratio ~102%).

The Hackett Group (NASDAQ:HCKT - Get Free Report) posted its quarterly earnings results on Tuesday. The business services provider reported $0.34 EPS for the quarter, missing the consensus estimate of $0.35 by ($0.01), FiscalAI reports. The business had revenue of $68.80 million during the quarter, compared to analysts' expectations of $71.23 million. The Hackett Group had a net margin of 4.23% and a return on equity of 22.21%. The Hackett Group updated its Q2 2026 guidance to 0.330-0.350 EPS.

Here are the key takeaways from The Hackett Group's conference call:

• Accelerated pivot to AI platform-enabled delivery — The company has integrated proprietary platforms (Hackett AI XPLR, XT, AIX, ZBrain) and an acquisition (LeewayHertz) to shift from labor-based services to "service as a product," which management says will add non-labor scale and expand addressable market.
• Q1 financials under pressure — reported revenues before reimbursements were roughly $68M with adjusted EPS of $0.34 at the low end of guidance, reflecting year-over-year revenue declines and elongated client decision cycles driven by AI ROI uncertainty.
• Early productivity and margin improvements expected to accelerate — SBT project margins reportedly improved ~500 basis points from platform leverage, Oracle margins are already improving with AIXelerator, and management expects Q2 sequential margin gains and a Q3 inflection where adjusted EPS could exceed prior-year levels on flat revenues.
• Weakened near-term cash position and higher receivables — cash fell to $6.1M (from $18.2M), operating cash used $5.1M, and DSO rose to 67 days, though management expects an $8M–$9M reduction in receivables by end of Q2.
• Strategic partnerships and demand signals showing traction — IBM go-to-market collaboration launched, wins driven by the OneStream AIXelerator, and a strong response from process-mining (Celonis) users to Hackett AI XPLR, which management says should help expand pipeline over the coming quarters.

The Hackett Group Stock Up 1.4%

NASDAQ HCKT traded up $0.19 during trading hours on Tuesday, hitting $13.89. The company had a trading volume of 338,567 shares, compared to its average volume of 231,094. The firm's 50 day moving average is $13.41 and its 200 day moving average is $16.74. The company has a debt-to-equity ratio of 1.11, a current ratio of 1.72 and a quick ratio of 1.72. The Hackett Group has a fifty-two week low of $12.19 and a fifty-two week high of $26.53. The company has a market capitalization of $350.31 million, a price-to-earnings ratio of 29.55, a P/E/G ratio of 0.90 and a beta of 0.96.

The Hackett Group Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, April 3rd. Investors of record on Friday, March 20th were given 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 of this dividend was Friday, March 20th. The Hackett Group's dividend payout ratio is 102.13%.

Key Stories Impacting The Hackett Group

Here are the key news stories impacting The Hackett Group this week:

• Positive Sentiment: Management emphasizes AI strategy and shareholder returns — Company reiterated disciplined, multi‑year investments in a Gen‑AI foundation and maintained a dividend commitment, signaling a long‑term growth thesis and return of capital that can support sentiment even after a near‑term earnings miss. Hackett Group Balances AI Investment With Dividend Commitment
• Positive Sentiment: Operating and cash‑flow improvements reported — The company and third‑party summaries note higher gross profit and a large jump in cash from operations, plus an increase in operating profit, which may reassure investors that cost discipline is offsetting revenue softness. The Hackett Group Announces First‑Quarter 2026 Results
• Neutral Sentiment: Analyst estimates and coverage updates — Craig Hallum issued Q1 EPS estimates earlier, reflecting differing analyst expectations; consensus full‑year EPS remains around $1.38, so forecasts are mixed and will hinge on execution against AI investments and revenue recovery.
• Negative Sentiment: Q1 slightly missed EPS and revenue estimates — Reported EPS of $0.34 missed the Zacks consensus of $0.35 and revenue of $68.8M was below estimates, a near‑term negative that likely prompted initial downside pressure. Hackett Group (HCKT) Misses Q1 Earnings and Revenue Estimates
• Negative Sentiment: Q2 guidance below consensus — The company set Q2 EPS of $0.330–0.350 (vs. ~$0.39 consensus) and revenue guidance of roughly $68.5–70.0M (below the ~$74.6M street view), which increases the risk of near‑term multiple compression if revenue recovery lags. Q1 Results & Guidance (press release)
• Negative Sentiment: Balance‑sheet items to monitor — Third‑party data highlights a drop in cash and a notable rise in total liabilities year‑over‑year, which could concern risk‑sensitive investors if the company needs to fund growth or make additional AI investments. Hackett Group Inc (HCKT) Stock Falls on Q1 2026 Earnings

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. Weiss Ratings lowered shares of The Hackett Group from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, April 8th. Zacks Research raised shares of The Hackett Group from a "strong sell" rating to a "hold" rating in a research note on Monday, April 20th. Roth Mkm set a $24.00 target price on The Hackett Group in a research report on Wednesday, February 18th. Wall Street Zen upgraded The Hackett Group from a "hold" rating to a "buy" rating in a report on Saturday, March 21st. Finally, Barrington Research reissued an "outperform" rating and set a $17.00 price target on shares of The Hackett Group in a research report on Thursday, April 23rd. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, The Hackett Group presently has an average rating of "Hold" and a consensus price target of $20.50.

Institutional Investors Weigh In On The Hackett Group

Several institutional investors and hedge funds have recently modified their holdings of the stock. Quadrant Capital Group LLC acquired a new stake in shares of The Hackett Group in the fourth quarter valued at about $41,000. Tower Research Capital LLC TRC lifted its position in The Hackett Group by 566.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 5,703 shares of the business services provider's stock worth $145,000 after acquiring an additional 4,847 shares in the last quarter. The Manufacturers Life Insurance Company boosted its holdings in The Hackett Group by 7.8% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 9,773 shares of the business services provider's stock worth $248,000 after acquiring an additional 707 shares during the period. Creative Planning purchased a new position in The Hackett Group in the 3rd quarter worth approximately $309,000. Finally, State of Wyoming grew its position in The Hackett Group by 15.9% in the second quarter. State of Wyoming now owns 12,816 shares of the business services provider's stock valued at $326,000 after acquiring an additional 1,755 shares in the last quarter. Hedge funds and other institutional investors own 78.12% of the company's stock.

About The Hackett Group

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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