| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 41.45 | 0.9% | 15.6% |
| Total Income | 41.45 | 0.9% | 15.6% |
| Expenditure | 41.77 | 1.8% | 14.9% |
| PBT | 0.00 | 100.0% | 100.0% |
| Net Profit | -0.10 | 138.5% | 171.4% |
| OPM | -0.78% | 0.91pp | 0.84pp |
| NPM | -0.24% | 0.88pp | 0.52pp |
| EPS | -0.01 | 150.0% | 200.0% |
Mastech Digital Reports Q2 2026 Results with Sequential Revenue Growth and Bookings Momentum
06 Aug 2026 · 6 Aug, 7:08 pm
Summary
Mastech Digital reported second quarter 2026 revenues of $41.4 million, down 15.6% year-over-year but up 0.9% sequentially. The Data & AI segment showed positive momentum with a 7.2% sequential revenue increase and bookings of $13.5 million. The Talent segment experienced a year-over-year decline due to client insourcing and strategic adjustments, though bill rates remained strong. Management highlighted the strategic realignment into Talent and Data & AI segments, emphasizing continued enterprise demand for AI-first initiatives and a focus on executing the transformation plan for the second half of the year.
Key Highlights
- 1
Total consolidated revenues for the second quarter of 2026 were $41.4 million, a decrease of 15.6% year-over-year but an increase of 0.9% sequentially.
- 2
The Data & AI segment reported revenues of $13.5 million, a 14.4% decline year-over-year but a 7.2% sequential increase, marking the first quarter of sequential growth since 2024.
- 3
Data & AI segment bookings totaled $13.5 million for the quarter, up from $9.0 million in the second quarter of 2025.
- 4
Talent segment revenues decreased by 16.2% year-over-year and 1.9% sequentially, impacted by client insourcing and a strategic exit from lower-margin positions.
- 5
The company maintained a strong average bill rate of $92.17 in the Talent segment, compared to $88.36 in the prior year's second quarter.
- 6
As of June 30, 2026, Mastech Digital had liquidity of $56.0 million, including $35.6 million in cash and cash equivalents and $20.4 million in available borrowing capacity.
Management Comments
Nirav Patel
Last quarter, we realigned our business into two segments, Talent and Data & AI, positioning us as a full-service, AI-first provider for enterprise customers. We believe that decision is beginning to show results. During the second quarter, we entered into a strategic AI deployment engagement with a leading US convenience store retailer to deploy a production-grade agentic AI foundation to power its consumer applications and store operations. We believe this engagement reflects continued enterprise demand for partners like Mastech Digital that can support AI-first initiatives. Within our Data & AI segment, deliberate investments in our go-to-market acceleration, AI ready talent, and Data platform partnership scale-ups are now beginning to increase as reflected in our financials for the second quarter of 2026. Bookings for the quarter totaled $13.6 million, compared to $9.0 million in the second quarter of 2025.Revenue grew 7.2% sequentially, marking the segment's first sequential quarter of growth since 2024. As anticipated, insourcing by one of our top ten clients continued to weigh on Talent segment performance, consistent with prior quarters. We continue to monitor the situation closely. As we move into the second half of the year, our team remains focused and disciplined in executing our transformation plan
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