The Hackett Group Q2 Earnings Call Highlights

Second-quarter results were mixed: Revenue before reimbursements rose sequentially to $68.3 million, while adjusted EPS reached $0.34 and GAAP net income increased slightly to $4.4 million. Revenue was just below guidance, but gross margin improved to 44.1%. Hackett is accelerating its AI-enabled platform strategy. The company closed more than $30 million in late-quarter proposals, including OneStream and Oracle engagements, with projects expected to ramp in the third quarter and extend into 2027. Third-quarter guidance points to stronger earnings: Hackett expects revenue of $68 million to $70 million and adjusted EPS of $0.37 to $0.39, supported by higher margins and increased use of AI-enabled delivery platforms. The company also generated $15.2 million in operating cash flow, reduced net debt by $6.1 million, repurchased about $4 million of shares and declared a $0.12 quarterly dividend.

The Hackett Group NASDAQ: HCKT reported second-quarter 2026 revenue before reimbursements of $68.3 million and adjusted diluted earnings per share of $0.34, as the consulting firm continued its transition toward an AI-enabled, platform-led sales and delivery model. Revenue before reimbursements increased from $67.8 million in the first quarter, though it came in slightly below the company’s guided range, according to Chief Financial Officer Rob Ramirez. Adjusted EPS was at the midpoint of guidance. GAAP net income was $4.4 million, or $0.18 per diluted share, compared with $4.3 million, or $0.17 per share, in the prior quarter.

Management said it expects its AI platforms and recently won client engagements to support sequential revenue improvement and year-over-year earnings-per-share growth in the third quarter. Platform Strategy and New Engagements Chairman and CEO Ted Fernandez said Hackett has been shifting from a traditional consulting and implementation model to an AI-enabled approach centered on its proprietary platforms. These include AI XPLR for AI solution ideation, design and build; XT for enterprise transformation; and AIX for software implementation. The platforms incorporate Hackett’s benchmarking, process best-practice intelligence and its solution language model.

Fernandez said the company closed several significant proposals totaling more than $30 million late in the second quarter. He said the projects are expected to ramp during the third quarter, with at least some extending through the end of 2027. The wins included one OneStream engagement and two Oracle-related engagements, Fernandez said in response to an analyst question. He said the company’s platform capabilities helped it demonstrate both traditional implementation delivery and expanded AI-enabled capabilities. Hackett plans to release XT version 2, which incorporates a significant portion of AI XPLR, shortly after the call. The company also launched XDA, a data assurance and quality platform intended to support its transformation and software implementation offerings.

Fernandez said clients have become more cautious about stand-alone, AI-first adoption programs because of uncertainty over returns on investment. Instead, he said many clients are incorporating AI initiatives into broader enterprise transformation and application implementation engagements. According to Fernandez, clients are including or extending AI scopes in nearly all new engagements.

Segment Results and Margin Trends Global S&BT revenue before reimbursements was $35.6 million in the second quarter, down 2% sequentially. Ramirez said clients continued to question the underlying value of AI and remained uncertain about the return on investment from AI-first strategies. Oracle Solutions revenue be...