Key Highlights

  • Third-quarter 2026 total Revenue was USD 69.8 million, down about 4.5% from USD 73.1 million, while revenue before reimbursements was USD 68.9 million against USD 72.2 million.
  • GAAP diluted EPS rose to USD 0.14 from USD 0.09, and adjusted diluted EPS was USD 0.39, the high end of guidance, against USD 0.37 a year earlier.
  • Net income was USD 3.6 million against USD 2.5 million, a gain of about 40% on simple arithmetic, helped by lower operating costs.
  • Fourth-quarter guidance calls for revenue before reimbursements of USD 68.0 million to USD 70.0 million and adjusted EPS of USD 0.39 to USD 0.41.

Lower Revenue, Higher Earnings in the Quarter to September 25

Hackett Group (NASDAQ:HCKT), a Miami-based AI-enabled enterprise transformation and consulting company, reported third-quarter results on November 3, 2026 for the quarter ended September 25. Total revenue slipped to USD 69.8 million from USD 73.1 million, and nine-month revenue before reimbursements fell about 9.3% to USD 205.1 million, by simple arithmetic. Yet Operating Income rose to USD 7.5 million from USD 5.5 million. Selling, general and administrative costs fell to USD 18.8 million from USD 21.2 million, and restructuring charges were USD 1.4 million against USD 3.1 million.

SAP Gains Offset Weakness in Strategy and Business Transformation

The mix moved under the headline. Global Strategy and Business Transformation revenue before reimbursements fell to USD 36.6 million from USD 42.4 million, and its segment contribution dropped to USD 10.8 million from USD 13.2 million. SAP Solutions grew to USD 16.4 million from USD 13.4 million, lifting contribution to USD 5.2 million, while Oracle Solutions revenue edged down to USD 15.9 million but contribution rose to USD 5.0 million from USD 2.7 million. Weighted diluted shares declined to 24.95 million from 27.6 million, which raises EPS even when Net Income is flat. The CEO said the company's AI platforms are beginning to improve sales and delivery productivity, and expects Operating Leverage and Margin expansion, which is a management expectation.

Debt Rising, Dividend Declared and a Seasonally Light Fourth Quarter

Cash was USD 12.6 million against USD 86.1 million drawn on the Credit facility, and net interest expense rose to USD 1.2 million from USD 0.4 million. The company repurchased USD 2.5 million of stock and paid USD 3.0 million of dividends, with USD 16.3 million left under its repurchase plan. A fourth-quarter dividend of USD 0.12 per share is payable January 8, 2027 to holders of record on December 24, 2026. For the fourth quarter, management cites 6% to 8% fewer available days and expects Cash Flow from operations to rise USD 15.0 million to USD 20.0 million sequentially. Adjusted EPS excludes Stock Compensation and other items. The digest holds no peer comparison.

Where Things Stand

Profit rose mainly because costs and the share count fell faster than revenue, not because Demand improved. Hackett Group (NASDAQ:HCKT) cut selling costs, trimmed restructuring charges and bought back shares, while its largest segment shrank. Adjusted EPS of USD 0.39 hit the top of guidance, but the fourth-quarter revenue range of USD 68.0 million to USD 70.0 million brackets the third-quarter USD 68.9 million, so no clear growth is guided. Rising Debt adds a cost: long-term debt was USD 86.1 million, up from USD 75.8 million at December 27, 2025. The next test is whether AI-related demand lifts revenue in 2027.