Mastech Digital 3Q 2026: Revenue $42M, Net income $7K, EPS $0— 10-Q Summary

What happened

Mastech Digital reported third-quarter 2026 revenue of $42 million, down 13.4% from a year earlier. Net income was $7,000 and diluted earnings per share were $0. Revenue fell in both the Talent and Data & AI segments, though gross margin improved.

Confirmed

Global impact / market context

Profit shrank to almost nothing because sales fell faster than costs. Fewer billable consultants, 580 versus 734, directly cuts revenue, since clients pay for each worked hour. A better gross margin, which means profit left after direct delivery costs, only partly offsets that lost volume.

Analyst inference

The company says cautious client spending and longer decision cycles are still weighing on demand, so lower sales may persist. Data & AI bookings rose to $10.8 million, a sign of future work, while average bill rates climbed to $92.37, which shows pricing held up despite fewer consultants.

Analyst inference

What to watch

1. Data & AI bookings rose to $10.8 million from $8.4 million this quarter and to $38.0 million from $32.7 million over nine months, so watch whether booked work converts into revenue. Confirmed
2. Watch whether Mastech rebuilds its Talent billable consultant headcount from 580, because fewer billable people limits how much service revenue the segment can generate. Proposed
3. If cautious client spending and longer decision cycles continue, revenue may keep falling; higher average bill rates of $92.37 and improving gross margin would only partly protect profit. Analyst inference

Evidence

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