Key Highlights

  • Total Revenue fell about 4.5% to USD 69.8 million from USD 73.1 million in Q3 2026, and revenue before reimbursements slipped to USD 68.9 million from USD 72.2 million.
  • GAAP diluted EPS rose to USD 0.14 from USD 0.09, and adjusted diluted EPS of USD 0.39 landed at the top of guidance, compared with USD 0.37 a year earlier.
  • Net income reached USD 3.6 million against USD 2.5 million, a gain of about 40% by simple arithmetic, helped by lower operating costs.
  • For Q4, management sees revenue before reimbursements of USD 68.0 million to USD 70.0 million, with adjusted EPS between USD 0.39 and USD 0.41.

Revenue Slips While Earnings Improve in the Period to September 25

Hackett Group (NASDAQ:HCKT), an AI-enabled enterprise transformation and consulting firm based in Miami, reported third-quarter results on November 3, 2026 for the quarter that closed September 25. Total revenue eased 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. Operating Income nevertheless rose to USD 7.5 million from USD 5.5 million. Selling, general and administrative expenses dropped to USD 18.8 million from USD 21.2 million, while restructuring charges came in at USD 1.4 million against USD 3.1 million.

SAP Growth Cushions a Slump in Strategy and Transformation Work

The segment mix shifted beneath the top-line figure. Global Strategy and Business Transformation revenue before reimbursements slid to USD 36.6 million from USD 42.4 million, and its segment contribution fell to USD 10.8 million from USD 13.2 million. SAP Solutions revenue rose to USD 16.4 million from USD 13.4 million, lifting contribution to USD 5.2 million, while Oracle Solutions revenue slipped to USD 15.9 million yet its contribution climbed to USD 5.0 million from USD 2.7 million. Weighted diluted shares fell to 24.95 million from 27.6 million, which lifts EPS even when Net Income holds steady. The CEO said the company's AI platforms are starting to improve sales and delivery productivity and anticipates Operating Leverage and Margin gains, a management expectation rather than a result.

Higher Borrowing, a Declared Dividend and a Lighter Fourth Quarter

Cash stood at USD 12.6 million against USD 86.1 million drawn on the Credit line, and net interest expense rose to USD 1.2 million from USD 0.4 million. The company bought back USD 2.5 million of stock and paid USD 3.0 million in dividends, with USD 16.3 million still available under its repurchase plan. A fourth-quarter dividend of USD 0.12 per share will be paid January 8, 2027 to holders of record on December 24, 2026. For the fourth quarter, management points to 6% to 8% fewer available days and expects Operating Cash Flow to rise by USD 15.0 million to USD 20.0 million sequentially. Adjusted EPS excludes Stock Compensation and other items. No peer comparison appears in the material reviewed.

Where Things Stand

Profit grew mainly because costs and the share count shrank faster than revenue, not because Demand picked up. Hackett Group (NASDAQ:HCKT) trimmed selling costs, reduced restructuring charges and repurchased shares while its largest segment contracted. Adjusted EPS of USD 0.39 reached 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. Debt is rising too: long-term debt reached 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.