Hackett Group (HCKT) Stock Forecast & Price Target

Hackett Group is viewed favorably because its Gen AI and enterprise transformation platform is positioned to benefit from a mix shift toward AI services and broader adoption of AI-based implementation tools, which management expects to improve gross and adjusted EBITDA margins in the second half of 2026 and beyond. Despite a soft Q1/26, with net revenue of $67.8 million, non-GAAP EPS of $0.34, and adjusted EBITDA of $13.8 million, the company still maintained 20.3% adjusted EBITDA margins, continued share repurchases, and had $22.0 million remaining under its authorization alongside a newly declared $0.12 dividend. The outlook also reflects valuation support, as the shares trade at a 19% discount to peers on 2026 non-GAAP EPS estimates, while the IBM AI partnership and healthy sales pipelines suggest eventual revenue recovery across Oracle, SAP, and Global S&BT.

Hackett Group is facing a negative fundamental backdrop because Q1/26 revenue of $67.8 million missed both internal and FactSet expectations by 5%, while non-GAAP EPS of $0.34 also fell short of the $0.35 forecast despite a 70 bps adjusted EBITDA margin beat. The core GSBT business, which generated 54% of Q1/26 revenue, declined 15% year over year and 6% sequentially as elongated AI sales cycles and weak market sentiment slowed demand, while Oracle Solutions fell 24% year over year, underscoring broad execution and demand pressure. With 2026 and 2027 EPS estimates cut to $1.50 and $1.68 from $1.64 and $1.78, and Q1/26 EBITDA margins expected to slip to 19.6% from 20.7%, the outlook reflects both top-line deterioration and weaker earnings power.