Mastech Digital Q3 revenue falls 13% on Talent segment weakness
MHH•Mastech Digital’s third-quarter revenue fell 13% year over year to $41.99 million, while non-GAAP diluted EPS dropped to $0.10 from $0.29. Talent segment revenue declined 16.4% as a top client continued insourcing services.
1. Segment results
Data & AI segment revenue grew 4.7% sequentially for a second consecutive quarter, and bookings rose 29% year over year. The company said its focus on high-value Data & AI work lifted the segment’s gross margin by 50 basis points year over year to 40.5%.
2. Talent weakness
Talent segment revenue fell 16.4% year over year, driven by a 21% decline in billable consultants as a top client continued insourcing and Mastech exited lower-margin positions.
3. Investment outlook
Mastech expects to continue investing in Data & AI capabilities into 2027. The company sees enterprises moving beyond AI experimentation toward production deployments.
