The Hackett Group (NASDAQ:HCKT) Issues Earnings Results, Misses Expectations By $0.01 EPS

The Hackett Group (NASDAQ:HCKT) released its quarterly earnings results on Tuesday. The business services provider reported $0.34 earnings per share for the quarter, missing analysts’ consensus estimates of $0.35 by ($0.01), FiscalAI reports. The Hackett Group had a net margin of 4.23% and a return on equity of 22.21%. The firm had revenue of $68.80 million for the quarter, compared to analyst estimates of $71.23 million. 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%

The Hackett Group stock traded up $0.19 during midday trading on Tuesday, hitting $13.89. The stock had a trading volume of 338,567 shares, compared to its average volume of 231,094. The company has a current ratio of 1.72, a quick ratio of 1.72 and a debt-to-equity ratio of 1.11. The stock has a market cap of $350.31 million, a P/E ratio of 29.55, a P/E/G ratio of 0.90 and a beta of 0.96. The Hackett Group has a 12 month low of $12.19 and a 12 month high of $26.53. The business has a fifty day moving average price of $13.41 and a 200 day moving average price of $16.74.

The Hackett Group Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, April 3rd. Investors of record on Friday, March 20th were paid a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a yield of 3.5%. The ex-dividend date was Friday, March 20th. The Hackett Group’s dividend payout ratio (DPR) is 102.13%.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in The Hackett Group by 70.5% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 37,946 shares of the business services provider’s stock worth $745,000 after purchasing an additional 15,690 shares during the period. Verition Fund Management LLC acquired a new stake in shares of The Hackett Group during the third quarter worth $670,000. Nebula Research & Development LLC raised its holdings in shares of The Hackett Group by 35.6% during the second quarter. Nebula Research & Development LLC now owns 25,386 shares of the business services provider’s stock worth $645,000 after purchasing an additional 6,663 shares during the period. Brevan Howard Capital Management LP bought a new position in shares of The Hackett Group in the 2nd quarter worth about $549,000. Finally, Brooklyn Investment Group acquired a new position in shares of The Hackett Group in the 4th quarter valued at about $495,000. Institutional investors and hedge funds own 78.12% of the company’s stock.

Analyst Ratings Changes

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

Key Headlines 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

The Hackett Group Company Profile

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.