Mastech Digital Q2 revenue falls on continued insourcing

Mastech Digital

06/08/2026 12:44

Overview
Digital transformation IT services provider's Q2 revenue fell 16% yr/yr, rose 1% sequentially
Adjusted EPS for Q2 dropped to $0.08 from $0.15 yr/yr
Company entered strategic AI deployment engagement with major U.S. retailer

Outlook
Company did not provide specific financial guidance for the current or future periods

Result Drivers
DATA & AI BOOKINGS - Sequential revenue growth in Data & AI segment driven by increased bookings and go-to-market investments
TALENT SEGMENT INSOURCING - Talent segment revenue decline attributed to continued insourcing by a top ten client and exit from lower-margin positions
BILL RATE IMPROVEMENT - Higher average bill rate in Talent segment reflects focus on revenue quality

Company press release: ID:nPn8Qwnbna

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$41.45 mln
$40.82 mln (2 Analysts)
Q2 Adjusted EPS
Miss
$0.08
$0.13 (2 Analysts)
Q2 Net Loss
 
$100,000
 
Q2 Gross Profit
 
$12 mln
 
Q2 Income from Operations
 
-$325,000
 
Q2 Pretax Loss
 
$2,000
 

Analyst Coverage
Wall Street's median 12-month price target for Mastech Digital Inc is $12.50, about 58.8% above its August 5 closing price of $7.87
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads
Aug 5 - BGSF Q2 revenue falls on lower billable hours
Aug 6 - Epam Systems Q2 profit beats on AI-native momentum
Aug 4 - Hackett Group Q2 adjusted revenue misses estimates on business model transition

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(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.)