The Hackett Group Earnings Call Transcripts
Fiscal Year 2026
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Revenue and adjusted EPS declined year-over-year amid macro uncertainty and client delays, but sequential improvements are expected as AI platform adoption accelerates. Q3 is projected as an inflection point for EPS growth, with strong SAP segment performance and new partnerships driving future opportunities.
Fiscal Year 2025
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Q4 revenues exceeded guidance, driven by strong SAP growth and the rollout of GenAI-enabled platforms. Adjusted margins and EBITDA declined year-over-year, but cash flow supported significant share buybacks. The outlook anticipates continued SAP strength, sequential improvement in other segments, and ongoing AI-driven transformation.
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Q3 revenues declined 7% year-over-year, with adjusted EPS at $0.37 and strong GenAI-driven growth offset by segment-specific headwinds. The launch of AI Explorer v4 and new alliances are expected to drive future growth, while a $40M Dutch tender offer and increased buybacks highlight capital returns.
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Second quarter revenues grew 2% year-over-year, driven by Gen AI-related engagements, while Oracle Solutions faced headwinds. Strategic innovation and partnerships, including with Celonis, are expected to accelerate growth, with Q3 guidance reflecting continued Gen AI momentum and restructuring.
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Q1 revenues and adjusted EPS were at the high end of guidance, driven by strong GenAI growth, while Oracle and SAP segments declined. GenAI platforms and acquisitions are fueling innovation and margin expansion, with Q2 guidance projecting stable revenues and continued margin strength.
Fiscal Year 2024
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Q4 2024 revenue and adjusted EPS exceeded guidance, driven by strong SAP and GenAI growth. The LeewayHertz acquisition and ZBrain JV are expected to boost recurring revenues, while Q1 2025 guidance anticipates continued GenAI momentum but softer Oracle and SAP segments.
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Q3 revenues and adjusted EPS exceeded guidance, driven by strong Oracle and SAP segments and sequential GenAI growth, though eProcurement remained weak. The LeewayHertz acquisition expanded GenAI capabilities, and all segments are expected to grow 3%-5% year-over-year in Q4.
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Q2 revenues and adjusted EPS exceeded guidance, led by Oracle and SAP segment strength, while Global S&BT declined due to extended client decision-making. Gen AI investments, especially the AI XPLR platform, are driving client engagement and expected sequential revenue growth.