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Jack Henry & Associates (JKHY) AI Stock Analysis
Jack Henry & Associates
(NASDAQ:JKHY)
The score is driven primarily by strong financial performance (growth, improving margins, low leverage, solid cash generation) and bullish technical positioning (price above key moving averages with positive momentum). Earnings-call guidance supports continued growth and modest margin expansion, but near-term cost/mix and timing-related volatility temper the outlook. Valuation is acceptable but not clearly discounted at a ~23.8 P/E with a modest ~1.43% yield.
Jack Henry & Associates Key Performance Indicators (KPIs)
Revenue by TypeShows how revenue is generated across different product or service lines, highlighting which areas are driving growth and which may need strategic adjustments.
Processing is the clear growth engine—steady, compounding lift tied to payments and faster‑payments adoption—while cloud revenue is the strategic margin lever as clients migrate to higher‑value private cloud arrangements. On‑premise is largely flat with recurring Q3 spikes (likely seasonal renewals), and Product Delivery & Services is lumpy, reflecting implementation timing, conversions and deconversion/M&A activity; management’s raised deconversion guide ($28M) and H2 normalization warnings mean back‑half growth and margins may be choppier despite stronger full‑year fundamentals.
The FlyJack Henry & Associates (JKHY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $11.31B
- Dividend Yield
- 1.49%
- Average Volume (3M)
- 928.83K
- Price to Earnings (P/E)
- 23.1
- Beta (1Y)
- 0.06
- Revenue Growth
- 6.66%
- EPS Growth
- 11.84%
- Country
- US
- Employees
- 7,300
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Information Technology Services
Jack Henry & Associates Business Overview & Revenue Model
Company Description
Jack Henry & Associates, Inc. operates as a financial technology company that connects people and financial institutions through technology solutions and payment processing services. It operates through four segments: Core, Payments, Complementary, a...
How the Company Makes Money
Jack Henry makes money by selling subscription and processing-based technology services to financial institutions, with revenue generally tied to (a) recurring fees for operating mission-critical systems and (b) transaction or usage volumes across pa...
Jack Henry & Associates Earnings Call Summary
The call emphasized multiple clear positives: record quarterly and full-year revenue, multi-year margin expansion, strong sales momentum with a meaningful move upmarket, accelerating cloud and faster-payments adoption, broad AI and security initiatives, solid full-year free cash flow and aggressive capital returns. Headwinds were acknowledged but portrayed as manageable and largely timing-related: notable increases in R&D and SG&A, a short-term Core margin mix impact, Q4 cash flow softness, and planned FY27 investments in AI/security and data center consolidation that pressure near-term margins. Management provided constructive FY27 guidance with modest revenue growth and continued margin expansion (20–40 bps), while signaling confidence in stronger momentum in the back half of the year. Overall, the positives (record results, strong pipeline, strategic investments and capital returns) materially outweigh the near-term operational and timing challenges.
Q4-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Jack Henry's fiscal 2027 guidance calls for full‑year GAAP revenue growth of 5.5%–6.5% and non‑GAAP revenue growth of 6.3%–7.3%, initial deconversion revenue of $23 million (with $11M in Q1 and the remaining $12M evenly across Q2–Q4, about $4M/quarter), full‑year non‑GAAP operating margin expansion of 20–40 basis points (with cautious upside possible later), a GAAP tax rate of 23%, GAAP EPS of $7.33–$7.38 (up ~5%–6%), and full‑year free cash flow conversion of 85%–100%; management flagged tougher comps in H1 (Q1 non‑GAAP revenue expected modestly below the low end of the range, including a ~1% impact from shifting the Connect conference — typically ~$6M revenue and ~$10M expense — to Q2), plus near‑term pressure from normalized self‑insured medical costs and incremental cyber/infrastructure/AI (EC2030) investments, with expectations the second half will reverse the headwinds to achieve the full‑year targets.
Jack Henry & Associates Financial Statement Overview
Summary
Strong multi-year profile: steady revenue growth and improving profitability (gross margin up and net margin ~19.8% in 2026), conservatively levered balance sheet with low debt (~$40M in 2026), and solid cash generation. Score is slightly discounted due to internal data inconsistencies in the latest-year ratio fields and unusual cash-flow relationships that reduce confidence in pinpointing the most recent period’s operating/return metrics.
Income Statement
83Very PositiveBalance Sheet
86Very PositiveCash Flow
78Positive| Breakdown | TTM | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.53B | 2.50B | 2.38B | 2.22B | 2.08B | 1.94B |
| Gross Profit | 1.10B | 1.08B | 1.01B | 916.07M | 858.64M | 814.27M |
| EBITDA | 862.40M | 819.48M | 801.23M | 714.31M | 680.37M | 652.27M |
| Net Income | 502.78M | 502.78M | 455.75M | 381.82M | 366.65M | 362.92M |
Balance Sheet | ||||||
| Total Assets | 3.15B | 3.15B | 3.04B | 3.04B | 2.92B | 2.77B |
| Cash, Cash Equivalents and Short-Term Investments | 12.06M | 12.06M | 101.95M | 101.95M | 38.28M | 12.24M |
| Total Debt | 40.00M | 40.00M | 0 | 0 | 150.00M | 275.00M |
| Total Liabilities | 1.09B | 1.09B | 913.14M | 913.14M | 1.08B | 1.17B |
| Stockholders Equity | 2.05B | 2.05B | 2.13B | 2.13B | 1.84B | 1.61B |
Cash Flow | ||||||
| Free Cash Flow | 694.86M | 694.86M | 588.15M | 509.92M | 342.38M | 469.97M |
| Operating Cash Flow | 761.96M | 761.96M | 641.50M | 568.04M | 381.56M | 504.63M |
| Investing Cash Flow | -277.74M | -277.74M | -232.16M | -240.16M | -409.67M | -196.34M |
| Financing Cash Flow | -574.12M | -574.12M | -345.67M | -301.83M | -8.43M | -310.49M |
Jack Henry & Associates Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JKHY, the sentiment is Positive. The current price of 161.34 is above the 20-day moving average (MA) of 154.31, above the 50-day MA of 156.74, and above the 200-day MA of 153.61, indicating a bullish trend. The MACD of 2.20 indicates Negative momentum. The RSI at 61.19 is Neutral, neither overbought nor oversold. The STOCH value of 65.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JKHY.
Jack Henry & Associates Risk Analysis
Jack Henry & Associates disclosed 25 risk factors in its most recent earnings report. Jack Henry & Associates reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
2 New RisksJack Henry & Associates Peers Comparison
Overall Rating
- JKHY81Outperform
IBM79Outperform
BR77Outperform
FISV62Neutral
FIS60Neutral
VYX45Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| JKHY | 81Outperform | $11.31B | 23.11 | 23.49% | 1.49% | 6.66% | 11.84% |
| IBM | 79Outperform | $243.66B | 21.66 | 32.95% | 2.61% | 6.83% | 39.80% |
| BR | 77Outperform | $20.19B | 18.45 | 40.25% | 2.25% | 8.53% | 35.29% |
| FISV | 62Neutral | $26.60B | 9.58 | 10.77% | ― | -1.17% | -13.24% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| FIS | 60Neutral | $19.88B | 5.90 | 22.57% | 4.46% | 18.26% | 2280.55% |
| VYX | 45Neutral | $1.17B | 20.43 | 6.69% | ― | -5.34% | ― |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| JKHY | Jack Henry & Associates | 161.34 | 12.97 | 8.74% | |
| BR | Broadridge Financial Solutions | 178.82 | -37.42 | -17.30% | |
| FIS | Fidelity National Information Services | 38.55 | -21.36 | -35.65% | |
| FISV | Fiserv, Inc. | 50.02 | -15.12 | -23.21% | |
| IBM | International Business Machines Corporation | 257.81 | -39.20 | -13.20% | |
| VYX | Ncr Voyix Corporation | 8.48 | -2.86 | -25.22% |
Jack Henry & Associates Corporate Events
Jack Henry & Associates refreshes board with new director
PositiveOn August 20, 2026, Jack Henry & Associates appointed Richard N. Preece, CEO of education technology firm GoGuardian and former senior executive at LegalZoom and Intuit, to its Board of Directors and to the Human Capital & Compensation and Ri...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 24, 2026