Jack Henry & Associates (JKHY) AI Stock Analysis

• Market Cap: $11.08B
• Dividend Yield: 1.43%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.17
• Revenue Growth: 7.75%
• EPS Growth: N/A
• Country: US
• Employees: 7,170
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 1.97
• Shares Outstanding: 72,665,200
• 10 Day Avg. Volume: 1,001,146
• 30 Day Avg. Volume: 1,115,753
• PEG Ratio: 1.51
• Price to Book (P/B): 6.18
• Price to Sales (P/S): 5.54
• P/FCF Ratio: 22.38
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 4.48
• Enterprise Value/Gross Profit: 10.29
• Enterprise Value/Ebitda: 13.00
• 1Y Price Target: $178.44
• Price Target Upside: 11.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $181.00 ▲(13.25% Upside)

Jack Henry & Associates' strong financial performance and positive earnings call insights are the primary drivers of its score. While technical indicators suggest potential short-term challenges, the company's strategic initiatives and robust growth in key segments support a favorable outlook.

Positive Factors

Revenue Growth

Exceeding revenue expectations indicates strong demand for Jack Henry's solutions, supporting long-term growth and market position.

Cloud Migration

High cloud adoption enhances client retention and operational efficiency, strengthening Jack Henry's competitive advantage.

Acquisition of Victor Technologies

Expanding into the PaaS market diversifies revenue streams and positions Jack Henry for growth in a rapidly expanding sector.

Negative Factors

Pricing Compression Challenges

Pricing compression can pressure margins and impact profitability, posing a challenge to sustaining long-term financial performance.

Impact of M&A Activity

M&A activity among clients may lead to revenue volatility, affecting Jack Henry's recurring revenue stability.

Lower New Core Wins

A decrease in new core wins could signal competitive pressures, potentially impacting future growth and market share.

Jack Henry & Associates Business Overview & Revenue Model

Company Description

Jack Henry & Associates, Inc. provides technology solutions and payment processing services primarily for financial services organizations in the United States. It operates through four segments: Core, Payments, Complementary, and Corporate and Other. The company offers information and transaction processing solutions for banks ranging from community to multi-billion-dollar asset institutions under the Jack Henry Banking brand; core data processing solutions for various credit unions under the Symitar brand; and specialized financial performance, imaging and payments processing, information security and risk management, retail delivery, and online and mobile solutions to financial institutions and corporate entities under the ProfitStars brand. It also provides a suite of integrated applications required to process deposit, loan, and general ledger transactions, as well as to maintain centralized customer/member information; and complementary products and services that enable core bank and credit union clients to respond to evolving customer/member demands. The company's Jack Henry Banking business brand offers SilverLake, a robust primarily designed for commercial-focused banks; CIF 20/20, a parameter-driven, easy-to-use system for banks; and Core Director, a cost-efficient system with point-and-click operation. Its Symitar business brand provides Episys, a robust designed for credit unions. In addition, the company offers digital products and services and electronic payment solutions; purchases and resells hardware systems, including servers, workstations, scanners, and other devices; and provides implementation, training, and support services. Jack Henry & Associates, Inc. was founded in 1976 and is headquartered in Monett, Missouri.

How the Company Makes Money

Jack Henry & Associates generates revenue through multiple key streams. The majority of its revenue comes from the sale of software licenses and recurring maintenance fees associated with its core banking systems and complementary solutions. Additionally, the company earns significant income from its payment processing services, which include electronic funds transfer, ACH processing, and card processing services. Recurring revenue from these services is bolstered by long-term contracts with financial institutions. Partnerships with various fintech companies and integration with third-party applications also contribute to its revenue by expanding its service offerings and market reach. Overall, Jack Henry's business model leverages a combination of software sales, service fees, and strategic collaborations to create a steady flow of income.

Jack Henry & Associates Financial Statement Overview

Summary

Jack Henry & Associates exhibits robust financial performance with consistent revenue and profitability growth, supported by strong cash flow management and a stable balance sheet. While the company is well-positioned, there is potential for improvement in return on equity and free cash flow growth.

Income Statement

Jack Henry & Associates demonstrated strong financial performance with a consistent upward trend in revenue over the years. The gross profit and net profit margins are healthy, supported by a robust EBIT and EBITDA margin. The company shows solid revenue growth, indicating effective market strategies and operational efficiency.

Balance Sheet

The balance sheet reveals a stable financial position with an improving debt-to-equity ratio, suggesting prudent financial management. The equity ratio is strong, highlighting a solid asset base. However, the return on equity shows potential for improvement to maximize shareholder value.

Cash Flow

The company maintains a stable cash flow with strong operating cash inflow and positive free cash flow, indicating effective cash management. The operating and free cash flow to net income ratios demonstrate efficient cash conversion. However, there is room for enhancing free cash flow growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.42B	2.38B	2.22B	2.08B	1.94B	1.76B
Gross Profit	1.05B	1.01B	916.07M	858.64M	814.27M	694.83M
EBITDA	834.20M	801.23M	714.31M	680.37M	652.27M	696.76M
Net Income	480.54M	455.75M	381.82M	366.65M	362.92M	311.47M
Balance Sheet
Total Assets	2.51M	3.04B	2.92B	2.77B	2.46B	2.34B
Cash, Cash Equivalents and Short-Term Investments	2.51M	101.95M	38.28M	12.24M	48.79M	50.99M
Total Debt	20.00M	51.19M	209.60M	325.27M	166.52M	161.02M
Total Liabilities	341.08M	913.14M	1.08B	1.17B	1.07B	1.02B
Stockholders Equity	2.17B	2.13B	1.84B	1.61B	1.38B	1.32B
Cash Flow
Free Cash Flow	506.56M	588.15M	335.62M	174.57M	313.24M	304.29M
Operating Cash Flow	645.20M	641.50M	568.04M	381.56M	504.63M	462.13M
Investing Cash Flow	-271.93M	-232.16M	-240.16M	-409.67M	-196.34M	-162.25M
Financing Cash Flow	-380.24M	-345.67M	-301.83M	-8.43M	-310.49M	-462.23M

Jack Henry & Associates Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 159.83
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 159.83 is above the 20-day moving average (MA) of 153.51, above the 50-day MA of 154.56, and below the 200-day MA of 169.14, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 63.50 is Neutral, neither overbought nor oversold. The STOCH value of 61.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JKHY.

Jack Henry & Associates Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CACI	78 Outperform	$12.91B	25.82	13.14%	―	12.61%	11.85%
JKHY	77 Outperform	$11.08B	24.43	23.45%	1.43%	7.75%	―
EPAM	77 Outperform	$8.83B	22.59	11.36%	―	9.73%	-0.29%
PAY	74 Outperform	$4.16B	77.90	11.81%	―	44.34%	45.96%
EXLS	71 Outperform	$6.28B	26.79	25.96%	―	14.43%	29.86%
G	71 Outperform	$6.70B	12.75	21.86%	1.71%	7.37%	-14.64%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Jack Henry & Associates Corporate Events

Jack Henry & Associates Reports Strong Q1 2026 Results

Jack Henry & Associates, Inc. is a prominent financial technology company that provides innovative solutions to banks and credit unions, enabling them to enhance their service offerings and maintain competitive edges in the financial sector. The company is known for its commitment to fostering connections between financial institutions and their clients through cutting-edge technology and strategic partnerships.

Jack Henry’s Earnings Call: Record Results and Strategic Moves

Jack Henry & Associates’ recent earnings call revealed a positive start to the fiscal year, marked by record financial results and robust growth in digital platforms. The company successfully navigated client migrations to the private cloud, although it faced challenges with pricing compression and a decrease in new core wins compared to the previous year. Additionally, financial institution M&A activity impacted deconversion revenue.

Jack Henry’s Earnings Call: Record Revenue Amid Challenges

The recent earnings call from Jack Henry & Associates painted a balanced picture of the company’s current standing and future prospects. The sentiment expressed during the call was a blend of optimism and caution. While the company celebrated strong financial performance, sales momentum, and successful technology initiatives, it also acknowledged challenges such as industry consolidation, potential impacts from bank mergers, and pricing pressures. Despite these hurdles, Jack Henry remains confident in its strategic direction and long-term growth prospects.

Jack Henry Expands Board, Appoints CEO Adelson

On August 22, 2025, Jack Henry & Associates expanded its Board of Directors from nine to ten members, appointing President and CEO Gregory R. Adelson as the new director. Adelson, who has been with the company since 2011 and served in various leadership roles, will continue as President and CEO while joining the Board. This move is seen as a strategic decision to leverage Adelson’s leadership and vision in driving the company’s growth and success.

The most recent analyst rating on (JKHY) stock is a Buy with a $204.00 price target. To see the full list of analyst forecasts on Jack Henry & Associates stock, see the JKHY Stock Forecast page.

Jack Henry Reports Fiscal Year 2025 Revenue Highlights

Jack Henry & Associates, Inc. is a financial technology company that provides innovative solutions to banks and credit unions, enabling them to enhance their services and compete effectively in the financial sector.