Mastech Digital Q1 Earnings Miss Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 15 2026
0mins
Source: seekingalpha
- Earnings Performance: Mastech Digital reported a Q1 non-GAAP EPS of $0.11, missing expectations by $0.06, indicating pressure on profitability that may affect investor confidence.
- Revenue Decline: The company’s revenue for Q1 was $41.08 million, down 15% year-over-year and missing expectations by $3.31 million, reflecting challenges from weak market demand and strategic adjustments.
- New Order Growth: Despite the overall revenue decline, the total contract value (TCV) of new bookings reached $7.0 million in Q1, significantly up from $3.7 million in the same period of 2025, indicating positive momentum in new business development.
- Talent Segment Revenue Drop: Revenue from the talent segment fell 11.8% year-over-year, driven by a 20.8% decrease in billable consultants, suggesting the company is exiting lower-margin and non-strategic positions, which may impact future revenue structure.
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Analyst Views on MHH
About MHH
Mastech Digital, Inc. is a provider of digital transformation information technology (IT) services. The Company offers data management and analytics solutions, digital learning, and IT staffing services with a digital first approach. The Company’s segments include Data and Analytics Services and IT Staffing Services. Its Data and Analytics Services segment delivers specialized data management, data engineering, customer experience consulting, data analytics and cloud services to customers globally. Each of these services can be delivered using on-site and offshore resources. Its IT Staffing Services segment combines technical expertise with business process experience to deliver of range of services in digital and mainstream technologies. Its digital technology services include data management and analytics, cloud, mobility, social and automation. Its digital transformation services also include staffing and project-based services around digital learning.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Mastech Digital Q1 2026 Earnings Call Insights
- Revenue Performance: Mastech Digital reported $41.1 million in revenue for Q1 2026, a 15% year-over-year decline; however, the company achieved nearly 90% growth in bookings within its Data and AI segment, indicating market validation of its transformation strategy.
- Business Restructuring: The company has realigned its operations into two reportable segments: Talent and Data & AI, aiming to better reflect market demands and client relationship changes, thereby enhancing operational efficiency and market responsiveness.
- Investment Priorities: Management anticipates an increase in SG&A expenses starting in Q2, with a focus on investing in AI and modern data platform capabilities to meet strategic investment needs for data infrastructure from enterprises.
- Liquidity Position: The company remains debt-free with $33.6 million in cash, and the Board has authorized a share repurchase program of up to $5 million, although no shares were repurchased in Q1, reflecting a cautious approach to capital allocation.
See More
Mastech Digital Q1 Earnings Miss Expectations
- Earnings Performance: Mastech Digital reported a Q1 non-GAAP EPS of $0.11, missing expectations by $0.06, indicating pressure on profitability that may affect investor confidence.
- Revenue Decline: The company’s revenue for Q1 was $41.08 million, down 15% year-over-year and missing expectations by $3.31 million, reflecting challenges from weak market demand and strategic adjustments.
- New Order Growth: Despite the overall revenue decline, the total contract value (TCV) of new bookings reached $7.0 million in Q1, significantly up from $3.7 million in the same period of 2025, indicating positive momentum in new business development.
- Talent Segment Revenue Drop: Revenue from the talent segment fell 11.8% year-over-year, driven by a 20.8% decrease in billable consultants, suggesting the company is exiting lower-margin and non-strategic positions, which may impact future revenue structure.
See More
Mastech Digital Announces Q1 2026 Earnings Release Date
- Earnings Release Schedule: Mastech Digital will report its Q1 2026 financial results on May 15, 2026, with management hosting a conference call at 9:00 a.m. ET to review financial performance, which is expected to attract investor interest.
- Conference Call Participation: Participants must register to receive dial-in information and a unique PIN, ensuring that each registrant can only use the PIN exclusively, thereby enhancing the security and experience of the call.
- Investor Conference Engagement: CFO Kannan Sugantharaman will host a fireside chat at the Sidoti Micro-Cap Investor Conference on May 21, 2026, showcasing the company's strategies and prospects in digital transformation, further boosting investor confidence.
- Small Group Meeting Opportunities: Mastech Digital management is scheduled to hold virtual one-on-one and small group meetings with investors on May 20-21, providing direct engagement opportunities aimed at strengthening investor relations and fostering potential investments.
See More
Mastech Digital Q4 2025 Earnings Call Insights
- Revenue Performance: Mastech Digital reported consolidated revenue of $45.5 million in Q4 2025, reflecting a 10.4% year-over-year decline, with IT Staffing Services contributing $37.7 million and Data and Analytics Services at $7.8 million, indicating a challenging market backdrop and client budget caution.
- Gross Profit and Net Income: The gross profit stood at $12.9 million, down 12.5% year-over-year, with gross margin decreasing by 70 basis points; however, the company achieved a GAAP net income of $1 million or $0.08 per diluted share, an improvement from $0.02 per diluted share in the prior year, showcasing resilience in profitability under pressure.
- Strategic Investment and Buyback: The Board of Directors authorized a new share repurchase program worth up to $5 million, aimed at enhancing shareholder value, while management emphasized ongoing investments in AI-driven capabilities to support future growth and market demand.
- Future Outlook: Management views 2025 as a foundational year and plans to focus on sustainable growth, unlocking customer value, and investing in differentiated capabilities for 2026, despite ongoing market uncertainties, positioning the company for greater breakthroughs in the AI sector.
See More
Mastech Digital Q4 Earnings Analysis
- Earnings Performance: Mastech Digital reported a Q4 non-GAAP EPS of $0.21, beating estimates by $0.01, indicating stable profitability despite a decline in overall revenue.
- Revenue Decline: The company's Q4 revenue was $45.5 million, down 10.3% year-over-year and missing expectations, reflecting a cautious client spending environment and elongated decision-making cycles.
- Segment Performance: The Data and Analytics Services segment generated $7.8 million, significantly down from $10.3 million year-over-year, while IT Staffing Services revenue was $37.7 million, down from $40.5 million, indicating weak market demand.
- Gross Profit and Net Income: Gross profit stood at $12.9 million, down from $14.7 million a year ago, with a gross margin of 28.3%, which decreased by 70 basis points year-over-year but increased by 50 basis points sequentially, reflecting efforts in cost management.
See More
Executives of IBM and Mastech Digital Increase Stock Holdings
- IBM Executive Purchase: David N. Farr of International Business Machines made a $304,000 purchase of 1,000 shares at $304 each on Friday, currently seeing a 4.1% gain, indicating confidence in the company's future performance.
- Stock Price Increase: As of Monday, IBM's stock is up approximately 3.1% to $316.42, reflecting positive market expectations for its performance and validating Farr's investment decision.
- Mastech Digital Purchase: On the same day, Steven A. Shaw purchased 4,880 shares of Mastech Digital at $6.97 each for a total of $34,013, marking his sixth purchase in the past year, demonstrating ongoing confidence in the company's long-term growth potential.
- Historical Investment Cost: Prior to this transaction, Shaw had invested a total of $160,567 in Mastech Digital over the past 12 months at an average cost of $7.73 per share, underscoring his strong belief in the company's future development.
See More
Mastech Digital Q1 2026 Earnings Call Insights
- Revenue Performance: Mastech Digital reported $41.1 million in revenue for Q1 2026, a 15% year-over-year decline; however, the company achieved nearly 90% growth in bookings within its Data and AI segment, indicating market validation of its transformation strategy.
- Business Restructuring: The company has realigned its operations into two reportable segments: Talent and Data & AI, aiming to better reflect market demands and client relationship changes, thereby enhancing operational efficiency and market responsiveness.
- Investment Priorities: Management anticipates an increase in SG&A expenses starting in Q2, with a focus on investing in AI and modern data platform capabilities to meet strategic investment needs for data infrastructure from enterprises.
- Liquidity Position: The company remains debt-free with $33.6 million in cash, and the Board has authorized a share repurchase program of up to $5 million, although no shares were repurchased in Q1, reflecting a cautious approach to capital allocation.
See More
Mastech Digital Q1 Earnings Miss Expectations
- Earnings Performance: Mastech Digital reported a Q1 non-GAAP EPS of $0.11, missing expectations by $0.06, indicating pressure on profitability that may affect investor confidence.
- Revenue Decline: The company’s revenue for Q1 was $41.08 million, down 15% year-over-year and missing expectations by $3.31 million, reflecting challenges from weak market demand and strategic adjustments.
- New Order Growth: Despite the overall revenue decline, the total contract value (TCV) of new bookings reached $7.0 million in Q1, significantly up from $3.7 million in the same period of 2025, indicating positive momentum in new business development.
- Talent Segment Revenue Drop: Revenue from the talent segment fell 11.8% year-over-year, driven by a 20.8% decrease in billable consultants, suggesting the company is exiting lower-margin and non-strategic positions, which may impact future revenue structure.
See More
Mastech Digital Announces Q1 2026 Earnings Release Date
- Earnings Release Schedule: Mastech Digital will report its Q1 2026 financial results on May 15, 2026, with management hosting a conference call at 9:00 a.m. ET to review financial performance, which is expected to attract investor interest.
- Conference Call Participation: Participants must register to receive dial-in information and a unique PIN, ensuring that each registrant can only use the PIN exclusively, thereby enhancing the security and experience of the call.
- Investor Conference Engagement: CFO Kannan Sugantharaman will host a fireside chat at the Sidoti Micro-Cap Investor Conference on May 21, 2026, showcasing the company's strategies and prospects in digital transformation, further boosting investor confidence.
- Small Group Meeting Opportunities: Mastech Digital management is scheduled to hold virtual one-on-one and small group meetings with investors on May 20-21, providing direct engagement opportunities aimed at strengthening investor relations and fostering potential investments.
See More
Mastech Digital Q4 2025 Earnings Call Insights
- Revenue Performance: Mastech Digital reported consolidated revenue of $45.5 million in Q4 2025, reflecting a 10.4% year-over-year decline, with IT Staffing Services contributing $37.7 million and Data and Analytics Services at $7.8 million, indicating a challenging market backdrop and client budget caution.
- Gross Profit and Net Income: The gross profit stood at $12.9 million, down 12.5% year-over-year, with gross margin decreasing by 70 basis points; however, the company achieved a GAAP net income of $1 million or $0.08 per diluted share, an improvement from $0.02 per diluted share in the prior year, showcasing resilience in profitability under pressure.
- Strategic Investment and Buyback: The Board of Directors authorized a new share repurchase program worth up to $5 million, aimed at enhancing shareholder value, while management emphasized ongoing investments in AI-driven capabilities to support future growth and market demand.
- Future Outlook: Management views 2025 as a foundational year and plans to focus on sustainable growth, unlocking customer value, and investing in differentiated capabilities for 2026, despite ongoing market uncertainties, positioning the company for greater breakthroughs in the AI sector.
See More
Mastech Digital Q4 Earnings Analysis
- Earnings Performance: Mastech Digital reported a Q4 non-GAAP EPS of $0.21, beating estimates by $0.01, indicating stable profitability despite a decline in overall revenue.
- Revenue Decline: The company's Q4 revenue was $45.5 million, down 10.3% year-over-year and missing expectations, reflecting a cautious client spending environment and elongated decision-making cycles.
- Segment Performance: The Data and Analytics Services segment generated $7.8 million, significantly down from $10.3 million year-over-year, while IT Staffing Services revenue was $37.7 million, down from $40.5 million, indicating weak market demand.
- Gross Profit and Net Income: Gross profit stood at $12.9 million, down from $14.7 million a year ago, with a gross margin of 28.3%, which decreased by 70 basis points year-over-year but increased by 50 basis points sequentially, reflecting efforts in cost management.
See More
Executives of IBM and Mastech Digital Increase Stock Holdings
- IBM Executive Purchase: David N. Farr of International Business Machines made a $304,000 purchase of 1,000 shares at $304 each on Friday, currently seeing a 4.1% gain, indicating confidence in the company's future performance.
- Stock Price Increase: As of Monday, IBM's stock is up approximately 3.1% to $316.42, reflecting positive market expectations for its performance and validating Farr's investment decision.
- Mastech Digital Purchase: On the same day, Steven A. Shaw purchased 4,880 shares of Mastech Digital at $6.97 each for a total of $34,013, marking his sixth purchase in the past year, demonstrating ongoing confidence in the company's long-term growth potential.
- Historical Investment Cost: Prior to this transaction, Shaw had invested a total of $160,567 in Mastech Digital over the past 12 months at an average cost of $7.73 per share, underscoring his strong belief in the company's future development.
See More
