Key Highlights

  • Total Revenue was USD 69.8 million versus USD 73.1 million, with revenue before reimbursements at USD 68.9 million.
  • GAAP EPS rose to USD 0.14 from USD 0.09, and adjusted EPS rose to USD 0.39 from USD 0.37.
  • Cash was USD 12.6 million against USD 86.1 million outstanding on the Credit facility, with USD 5.5 million returned.
  • Fourth-quarter guidance is revenue of USD 68.0 to 70.0 million before reimbursements and adjusted EPS of USD 0.39 to 0.41.

Lower Revenue, Higher Earnings per Share

The Hackett Group, Inc. (NASDAQ:HCKT), a Miami-based enterprise transformation company, reported third-quarter 2026 results for the quarter ended September 25, 2026.

GAAP diluted Earnings Per Share rose to USD 0.14 from USD 0.09. Adjusted diluted earnings per share, a non-GAAP measure, were USD 0.39, at the high end of the company guidance range, compared with USD 0.37 a year earlier.

Analyst estimates were EPS of USD 0.37 against reported EPS of USD 0.39, and revenue of USD 68.7 million against reported revenue of USD 68.9 million.

AI Transformation Strategy

Chairman and Chief Executive Officer Ted Fernandez said the market increasingly recognizes that value and return from AI transformation require deep transformation expertise, intellectual property to reimagine critical processes and AI benchmarks to quantify the value opportunity. He said the expanding use of the AI platforms XT and AIX across enterprise transformation and software implementation offerings is beginning to improve sales and delivery productivity.

Fernandez added that as these benefits scale, management expects increasing Operating Leverage and Margin expansion, which strengthens its confidence in growth and profitability prospects for 2027, and that the company has just begun to realize the benefits of its AI transition strategy.

Balance Sheet and Capital Returns

As of September 25, 2026, cash balances were USD 12.6 million, with USD 86.1 million outstanding on the credit facility. During the quarter the company repurchased USD 2.5 million of its common stock and paid dividends of USD 3.0 million, and USD 16.3 million remained available under the repurchase plan.

After the quarter end the board declared its fourth quarterly Dividend of USD 0.12 per share, for shareholders of record on December 24, 2026, payable January 8, 2027.

Total revenue was USD 69.8 million compared with USD 73.1 million, and revenue before reimbursements was USD 68.9 million compared with USD 72.2 million.

Management estimates that Cash Flow from operations to rise sequentially by USD 15.0 million to USD 20.0 million, with a decrease in Accounts Receivable of USD 4.0 million to USD 5.0 million.

The company expects cash flow from operations to rise sequentially by USD 15.0 million to USD 20.0 million.

Fourth-Quarter Outlook

The company estimates fourth-quarter 2026 revenue before reimbursements of USD 68.0 million to USD 70.0 million, which reflects 6% to 8% fewer available days than the third quarter because of holidays and vacation. It estimates adjusted diluted EPS of USD 0.39 to USD 0.41, assuming a GAAP effective tax rate of 26.5%.

Productivity gains from XT and AIX, the pace of Debt reduction and the 2027 margin trajectory are the items to follow, along with whether the dividend of USD 0.12 per share remains covered by earnings.