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

The Hackett Group (NASDAQ:HCKT) issued its earnings results on Tuesday. The business services provider reported $0.34 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.34, FiscalAI reports. The Hackett Group had a return on equity of 26.70% and a net margin of 4.75%.The business had revenue of $68.34 million during the quarter, compared to analyst estimates of $68.80 million. 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 Performance

NASDAQ:HCKT traded down $0.23 during midday trading on Wednesday, reaching $11.05. The stock had a trading volume of 250,508 shares, compared to its average volume of 340,149. The firm has a fifty day simple moving average of $10.67 and a two-hundred day simple moving average of $12.83. The stock has a market cap of $278.48 million, a P/E ratio of 21.17, a P/E/G ratio of 0.92 and a beta of 0.92. The Hackett Group has a 12-month low of $9.15 and a 12-month high of $21.40. The company has a quick ratio of 1.88, a current ratio of 1.88 and a debt-to-equity ratio of 1.19.

The Hackett Group Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 2nd. Investors of record on Friday, September 18th will be issued a $0.12 dividend. This represents a $0.48 annualized dividend and a dividend yield of 4.3%. The ex-dividend date is Friday, September 18th. The Hackett Group’s payout ratio is currently 90.57%.

Key Headlines Impacting The Hackett Group

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

Institutional Investors Weigh In On The Hackett Group

Hedge funds have recently modified their holdings of the stock. Rhumbline Advisers increased its position in The Hackett Group by 1.5% during the 2nd quarter. Rhumbline Advisers now owns 39,506 shares of the business services provider’s stock worth $1,004,000 after purchasing an additional 581 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in The Hackett Group by 4.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,007 shares of the business services provider’s stock valued at $439,000 after buying an additional 614 shares in the last quarter. The Manufacturers Life Insurance Company grew its position in shares of 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 in the last quarter. AQR Capital Management LLC raised its position in shares of The Hackett Group by 1.9% during the 4th quarter. AQR Capital Management LLC now owns 44,573 shares of the business services provider’s stock valued at $875,000 after acquiring an additional 848 shares in the last quarter. Finally, Punch & Associates Investment Management Inc. lifted its stake in The Hackett Group by 0.3% during the third quarter. Punch & Associates Investment Management Inc. now owns 428,654 shares of the business services provider’s stock worth $8,149,000 after purchasing an additional 1,253 shares during the last quarter. 78.12% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of research analysts have commented on the stock. Zacks Research raised shares of The Hackett Group from a “strong sell” rating to a “hold” rating in a research report on Monday, July 6th. Barrington Research dropped their target price on The Hackett Group from $17.00 to $16.00 and set an “outperform” rating on the stock in a research report on Wednesday, May 6th. Roth Capital set a $17.00 price target on The Hackett Group in a report on Wednesday, May 6th. Wall Street Zen cut The Hackett Group from a “buy” rating to a “hold” rating in a research note on Saturday, May 9th. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of The Hackett Group in a research report on Monday, July 6th. One analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus price target of $16.50.

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.