Mastech Digital Q4 revenue falls 10.4% on cautious client spending

Mastech Digital

19/02/2026 12:08

Overview

IT services provider's Q4 revenue fell 10.4% yr/yr

GAAP net income for Q4 rose to $1.0 mln from $0.3 mln last year

Company announced $5 mln share repurchase program

Outlook

Company plans to accelerate investments in strategic growth priorities including Data and AI

Mastech Digital views 2026 as a year of execution for its transformation agenda

Company did not provide specific financial guidance for 2026

Result Drivers

CAUTIOUS CLIENT SPENDING - Data and Analytics Services segment revenue declined due to cautious client spending and elongated decision-making cycles

REDUCED BILLABLE CONSULTANTS - IT Staffing Services segment revenue fell due to a decrease in billable consultants

TRANSFORMATION PLAN - Co continued progress on transformation plan, including EDGE initiative, driving operational improvements

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$45.46 mln
$46.91 mln (2 Analysts)
Q4 Net Income
$972,000
Q4 Gross Profit
$12.88 mln
Q4 Income from Operations
$1.007 mln
Q4 Pretax Profit
$1.38 mln


Analyst Coverage

Wall Street's median 12-month price target for Mastech Digital Inc is $13.20, about 91.3% above its February 18 closing price of $6.90

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

Press Release: ID:nCNWWldMqa

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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.)