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Hackett Group Q2 adjusted revenue misses estimates on business model transition

Hackett Group Q2 adjusted revenue misses estimates on business model transition


Overview

  • U.S. AI consulting firm's Q2 adjusted revenue missed analyst expectations, adjusted EPS met consensus

  • Total revenue declined yr/yr as company transitions business model

  • Company repurchased $4 mln of stock, amended credit facility post-quarter


Outlook

  • Hackett Group sees Q3 2026 revenue before reimbursements between $68 mln and $70 mln

  • Company expects Q3 2026 adjusted diluted EPS between $0.37 and $0.39

  • Hackett Group anticipates sequential revenue growth and year-over-year adjusted EPS growth in Q3


Result Drivers

  • BUSINESS MODEL TRANSITION - Co said Q2 reflected ongoing transition of its business model

  • SEGMENT PERFORMANCE - Global S&BT and Oracle Solutions revenue declined yr/yr, SAP Solutions grew


Company press release: ID:nBw7vHYj1a


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

$69.30 mln

Q2 Adjusted Revenue

Miss

$68.30 mln

$69.51 mln (3 Analysts)

Q2 Adjusted EPS

Meet

$0.34

$0.34 (3 Analysts)

Q2 EPS

$0.18


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the business support services peer group is "buy"

  • Wall Street's median 12-month price target for The Hackett Group, Inc. is $17.00, about 50.3% above its August 3 closing price of $11.31

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago


Reuters Recommended Reads

  • Aug 4 - Gartner beats quarterly estimates on strong conference demand

  • Aug 3 - Palantir lifts annual revenue forecast on steady demand for AI-powered data analytics

  • Aug 3 - UK's Elixirr H1 revenue rises on AI demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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