Mastech Digital Q1 revenue falls 15% on cautious client spending

Mastech Digital

15/05/2026 12:09

Overview

US digital transformation IT services firm's Q1 revenue fell 15% yr/yr

Non-GAAP net income for Q1 rose compared to prior year

Company cites cautious client spending and elongated decision cycles due to macro uncertainties

Outlook

Company says enterprises remain cautious in technology spending due to macro-economic and geopolitical uncertainties

Company notes organizations continue to allocate toward strategic AI initiatives despite limited discretionary budgets

Company plans to monitor customer spending patterns as the environment evolves

Result Drivers

DATA & AI SLOWDOWN - Data & AI segment revenue fell 21% yr/yr, driven by cautious client spending and longer decision cycles amid macro and geopolitical uncertainty

TALENT SEGMENT CONTRACTION - Talent segment revenue dropped 11.8% yr/yr, reflecting a 20.8% decrease in billable consultants as company exited lower-margin and non-strategic positions

HIGHER BILL RATES - Average bill rate in Talent segment rose to $90.91 from $87.82 yr/yr, reflecting focus on revenue quality

Company press release: ID:nPn6L5Mjja

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$41.08 mln
$44.39 mln (2 Analysts)
Q1 Net Income
$264,000
Q1 Gross Profit
$11.03 mln
Q1 Income from Operations
$51,000
Q1 Pretax Profit
$657,000


Analyst Coverage

Wall Street's median 12-month price target for Mastech Digital Inc is $12.50, about 76.3% above its May 14 closing price of $7.09

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

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.)