Hackett Group (HCKT) is a discounted consulting-to-AI-platform transformation with a 4.2% yield, $30 million-plus platform wins, and substantial upside if software-enabled delivery lifts margins.
Overview
The Hackett Group (NASDAQ: HCKT) is a Miami-based strategic consulting, executive-advisory, and enterprise transformation firm serving large multinationals through S&BT, Oracle Solutions, and SAP Solutions. Its differentiation combines more than 11,000 benchmarking studies, Digital World Class® advisory, and Gen AI platforms designed to modernize workflows and enterprise applications. The customer base includes approximately 97% of the Dow Jones Industrials and 90% of the Fortune 100. Q2 FY2026 revenue declined 12.1% year over year to $69.3 million and missed consensus of approximately $73.7 million, while adjusted EPS was $0.34 and operating cash flow was $15.2 million. Management’s Q3 outlook calls for $68–$70 million revenue before reimbursements, $0.37–$0.39 adjusted EPS, 46%–47% adjusted gross margin, and 21.5%–22.5% adjusted EBITDA margin. **The investment case depends on converting consulting expertise into higher-margin platform revenue:** more than $30 million of platform-led wins in Q2 provide evidence of demand, but adoption is not yet proven at scale. At about $11.39, HCKT trades at approximately 7.8x forward consensus adjusted EPS and yields roughly 4.2%; the report’s base case targets $35.28 in five years, with Q3 results due November 3, 2026 as a near-term catalyst.