Hackett Group (HCKT) has opened Q1 2026 with total revenue of US$67.8 million and basic EPS of US$0.17, alongside trailing twelve month revenue of US$292.5 million and EPS of US$0.53. These figures sit against a net profit margin of 4.8% versus 7.8% a year earlier. Over recent quarters the company has seen quarterly revenue move from US$76.2 million in Q1 2025 to US$77.6 million in Q2 2025, US$72.2 million in Q3 2025 and US$74.8 million in Q4 2025, before landing at US$67.8 million in Q1 2026. Basic EPS has ranged from US$0.11 to US$0.21 across that period. For investors, this set of results puts the spotlight firmly on how efficiently Hackett Group can convert a largely steady revenue base into margins that support the longer term earnings recovery narrative.

See our full analysis for Hackett Group.

With the latest earnings on the table, the next step is to see how these margin trends line up against the widely followed bullish and bearish stories around Hackett Group and where those stories might need updating.

Margins Under Pressure vs 5 Year Earnings Trend

• Trailing 12 month net profit margin sits at 4.8%, compared with 7.8% a year earlier, alongside a 5 year pattern where earnings declined about 10% per year.
• Bears point to the weaker margin and multi year earnings trend as a sign that the pivot to GenAI platforms is having a cost before it has a payoff.
  • Adjusted EBITDA margin in Q4 2025 was 21.3% compared with 25.2% a year earlier. AI transition charges of about US$1 million to US$1.5 million are expected in Q1 2026 and may continue through 2026.
  • This mix of lower profitability and ongoing restructuring supports the cautious view that margin expansion could take time even as new AI offerings are rolled out.

Bears who worry about shrinking margins and restructuring costs can test those concerns against the detailed cautious case in the 🐻 Hackett Group Bear Case

Revenue Nearly Flat as EPS Swings Around

• On a trailing 12 month basis, revenue moved from US$307.0 million to US$292.5 million, while trailing EPS went from US$1.08 to US$0.53 over the same window.
• Consensus narrative expects GenAI platforms and recurring licenses to lift growth, yet the current revenue trend and quarterly EPS volatility set a high bar for that view.
  • Quarterly revenue over the last five reported periods ranged between US$67.8 million and US$77.6 million, and quarterly basic EPS moved between US$0.06 and US$0.21.
  • Analysts collectively forecast revenue growth of about 0.1% per year, so any acceleration from AI XPLR, XT and related tools would need to show up against this relatively flat starting point.

Valuation Gap vs DCF Fair Value and Earnings Rebound Hopes

• The stock trades at US$10.21, compared with a DCF fair value of about US$22.67 and an analyst price target of US$17.67, while the P/E of 18.3x sits below both the US IT industry average of 21.1x and a peer average of 37.4x.
• Bullish investors argue that forecast earnings growth of about 43.7% per year could support a re rating, but the current margin profile and leverage mean execution needs to line up with those expectations.
  • Trailing 12 month net income is US$14.1 million on revenue of US$292.5 million and the dividend yield of about 4.7% is not well covered by earnings, which adds pressure to deliver the projected earnings improvement.
  • If earnings do move from the current trailing EPS of US$0.53 toward the higher levels implied by forecasts, the gap to both DCF fair value and the US$17.67 price target is one of the key parts of the bullish thesis.

If you want to see how those growth expectations connect to a more optimistic storyline, including the GenAI rollout and margin targets, check the full bullish narrative for Hackett Group at 🐂 Hackett Group Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Hackett Group on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With mixed signals across growth, margins and valuation, it makes sense to look at the underlying data yourself and decide how compelling the story really is before the market moves on. To weigh up both the concerns and the brighter spots in one place, start with these 4 key rewards and 3 important warning signs

See What Else Is Out There

Hackett Group is wrestling with thinner margins, volatile EPS and an uncovered dividend, which together make the earnings rebound story less straightforward.

If that mix of softer profitability and dividend pressure feels uncomfortable, compare it with companies screened for stronger payout coverage and income resilience through 12 dividend fortresses.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.