Hackett Group (HCKT) Stock Forecast & Price Target

Hackett Group is well positioned to benefit from its March 18 agreement with IBM, which expands its credibility in AI strategy and gives it a channel to help large enterprise clients prioritize and implement AI solutions. By pairing its AI XPLR™ platform with IBM’s enterprise reach, the company strengthens its IP-led consulting model and reinforces demand for its Gen AI-enabled transformation services across front, mid, and back office functions. The partnership also supports the firm’s broader positioning in Oracle Solutions, SAP Solutions, and Global S&BT, where its advisory expertise and implementation offerings can deepen client engagement and drive growth.

Hackett Group is facing a deteriorating fundamental backdrop as Q1/26 net revenue of $67.8 million missed forecasts by 5%, fell 11% year over year, and slipped 9% sequentially, while non-GAAP EPS of $0.34 also missed expectations. The weakness was broad-based, with GSBT down 15% year over year, OSOL down 24%, and recurring revenue down 7%, reflecting elongated sales cycles, cautious client spending, and softer sentiment around AI project returns. Profitability and cash generation also worsened, as adjusted gross margin fell to 42.3%, adjusted EBITDA margin declined to 20.3%, cash from operations was a $5.1 million loss, free cash flow was a $7.5 million loss, and DSO rose to 67.