Hackett Adjusted Earnings Hit High End of Third-Quarter Range

The Tip Desk · November 3, 2026 · 3 min read

Adjusted diluted earnings were $0.39 a share as revenue before reimbursements reached $68.9 million, with fourth-quarter adjusted EPS seen at $0.39 to $0.41.

The Hackett Group, Inc. (HCKT), an ROI-led, AI-enabled enterprise transformation company, reported adjusted diluted earnings of $0.39 a share for the quarter ended September 25, 2026, at the high end of its $0.37 to $0.39 guidance range. GAAP diluted earnings were $0.14 a share, compared with $0.09 a year earlier.

Total revenue was $69.8 million and revenue before reimbursements was $68.9 million, versus $73.1 million and $72.2 million in the third quarter of 2025. Sequentially, total revenue rose from $69.3 million in the second quarter, and revenue before reimbursements rose from $68.3 million. Chairman and CEO Ted A. Fernandez said the company continues to build momentum as the market recognizes that value from AI transformation requires deep transformation expertise and IP, and that expanding use of its XT and AIX platforms is beginning to improve sales and delivery productivity. He said the company expects those benefits to drive increasing operating leverage and margin expansion and to strengthen confidence in 2027 growth and profitability.

Operating income was $7.5 million, compared with $5.5 million a year earlier. Restructuring costs were $1.4 million, versus $3.1 million a year earlier. Interest expense, net, was $1.2 million, versus $0.4 million a year earlier.

Global S&BT, which includes Gen AI consulting, implementation and licensing, benchmarking and business transformation, executive advisory, market intelligence and IP as-a-service, OneStream and eProcurement, generated $36.6 million of revenue before reimbursements, down from $42.4 million a year earlier. Segment contribution was $10.8 million, versus $13.2 million. Sequentially, Global S&BT revenue before reimbursements rose from $35.6 million in the second quarter.

Oracle Solutions, covering EPM/ERP practices, posted $15.9 million of revenue before reimbursements, versus $16.4 million a year earlier, and segment contribution of $5.0 million, versus $2.7 million. SAP Solutions, covering SAP applications and related services, posted $16.4 million of revenue before reimbursements, versus $13.4 million a year earlier, and segment contribution of $5.2 million, versus $3.7 million. SAP revenue before reimbursements fell sequentially from $17.4 million in the second quarter.

Consultant headcount was 1,210, versus 1,317 a year earlier; total headcount was 1,474, versus 1,599. Cash provided by operating activities was $1.8 million, versus $11.4 million a year earlier and $15.2 million in the second quarter. Cash balances were $12.6 million, with $86.1 million outstanding on the credit facility, versus $14.2 million cash and $81.0 million of debt at June 26, 2026. The company repurchased $2.5 million of common stock and paid $3.0 million of dividends in the quarter. Remaining share-repurchase authorization was $16.3 million.

For the fourth quarter of 2026, the company estimates revenue before reimbursements of $68.0 million to $70.0 million, reflecting 6% to 8% fewer available days versus the third quarter, and adjusted diluted earnings of $0.39 to $0.41, assuming a 26.5% GAAP effective tax rate. It estimates cash flow from operations to be up sequentially by approximately $15.0 million to $20.0 million, with a corresponding decrease in accounts receivable of $4.0 million to $5.0 million, to be used to pay down debt or repurchase stock. The board declared a fourth quarterly dividend of $0.12 a share, payable January 8, 2027.