Hackett Sets Third-Quarter Adjusted Earnings Outlook
The consulting firm now estimates third-quarter adjusted diluted EPS of $0.37 to $0.39 after $0.34 in the June quarter.
The Hackett Group, Inc. (HCKT), an AI strategic consulting and digital transformation firm, said it expects both sequential revenue growth and year-over-year adjusted earnings growth in the third quarter of 2026, citing platform-led wins exceeding $30 million and demand for AI-enabled transformation services.
Chairman and Chief Executive Officer Ted A. Fernandez said the third-quarter outlook marks what the company believes is an important operational and financial inflection point after a second quarter that reflected an ongoing transition of its business model.
The company now estimates third-quarter revenue before reimbursements of $68.0 million to $70.0 million and adjusted diluted earnings per share of $0.37 to $0.39, assuming a GAAP effective tax rate of 26.5%. That third-quarter earnings range sits above the $0.33 to $0.35 second-quarter outlook it issued in May.
In the quarter ended June 26, 2026, total revenue was $69.3 million, down from $78.9 million a year earlier. Revenue before reimbursements was $68.3 million, versus $77.6 million a year earlier. Sequentially, total revenue was $68.8 million in the first quarter.
GAAP diluted earnings per share rose to $0.18 from $0.06 a year earlier. GAAP net income was $4.4 million. Operating income increased to $7.7 million from $4.6 million a year earlier. Adjusted diluted earnings per share was $0.34, at the midpoint of guidance, versus $0.38 a year earlier.
The mix across reportable segments shifted. Global S&BT, which includes North America and international Gen AI consulting, implementation and licensing, benchmarking and business transformation, executive advisory, market intelligence and IP as-a-service, OneStream and eProcurement, posted revenue before reimbursements of $35.6 million and segment contribution of $9.1 million. Oracle Solutions revenue before reimbursements was $15.3 million, with segment contribution of $4.2 million. SAP Solutions revenue before reimbursements rose to $17.4 million from $13.5 million a year earlier, reversing a sequential decline from $16.0 million in the first quarter; segment contribution was $5.6 million.
Restructuring costs of $0.5 million appeared in the second quarter, versus none a year earlier. Interest expense, net, rose to $1.2 million from $0.4 million.
Cash provided by operations swung to $15.2 million from a $5.1 million outflow in the first quarter. The company used that cash to reduce net debt by $6.1 million, buy back $4.0 million of stock and pay dividends of $3.0 million. Cash balances were $14.2 million as of June 26, 2026, with $81.0 million outstanding on the credit facility. Days sales outstanding improved to 56 from 67. Consultant headcount was 1,211 and total headcount 1,491.
On August 3, 2026, the company amended and restated its credit facility to extend the maturity date and increase borrowing capacity to $125 million. The board declared a third quarterly dividend of $0.12 a share for shareholders of record on September 18, 2026, to be paid on October 2, 2026. Remaining authorization under the share repurchase plan was $18.1 million.
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