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Jack Henry & Associates
(NASDAQ:JKHY)
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Rating:81Outperform
Price Target:
$192.00
▲(10.59% Upside)
Action:Reiterated
Date:08/25/26
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.
Positive Factors
Recurring Cloud Revenue
High recurring revenue and growing cloud adoption support predictable sales, deepen client integration, and improve retention. With 79% of Core clients using private cloud, Jack Henry is positioned to expand durable subscription revenue over the next several years.
Negative Factors
Structural Investment Pressure on Costs
Sustained spending on AI, cybersecurity, infrastructure, and workforce expansion may limit near-term operating leverage. These investments can strengthen the platform, but execution must convert them into productivity and revenue gains to preserve margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Cloud Revenue
High recurring revenue and growing cloud adoption support predictable sales, deepen client integration, and improve retention. With 79% of Core clients using private cloud, Jack Henry is positioned to expand durable subscription revenue over the next several years.
Read all positive factors
Jack Henry & Associates Key Performance Indicators (KPIs)
Any
Revenue by Type
Shows how revenue is generated across different product or service lines, highlighting which areas are driving growth and which may need strategic adjustments.
Shows how revenue is generated across different product or service lines, highlighting which areas are driving growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyJack Henry & Associates (JKHY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.61B
Dividend Yield1.45%
Average Volume (3M)923.27K
Price to Earnings (P/E)23.7
Beta (1Y)0.12
Revenue Growth6.66%
EPS Growth11.84%
CountryUS
Employees7,300
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)6.98
Shares Outstanding70,112,610
10 Day Avg. Volume867,045
30 Day Avg. Volume923,267
Financial Highlights & Ratios
PEG Ratio1.66
Price to Book (P/B)4.84
Price to Sales (P/S)3.98
P/FCF Ratio14.28
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$190.82Price Target Upside9.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)7.35
Revenue Forecast (FY)$2.69B
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...
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...
Jack Henry & Associates Earnings Call Summary
Earnings Call Date:Aug 18, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
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.Positive Updates
Record Revenue and Margin Expansion
Q4 non-GAAP revenue of $633M, up 7% YoY; fiscal 2026 non-GAAP revenue of $2.5B, up 7% YoY. Q4 non-GAAP operating margin 21%; full-year non-GAAP margin 24%, up 92 basis points YoY (third consecutive year of margin expansion ≥60 bps).
Negative Updates
Near-Term Expense Pressure
Q4 cost of revenue increased 8% GAAP (7% non-GAAP). R&D increased 17% GAAP (16% non-GAAP) and SG&A rose 19% YoY (both GAAP and non-GAAP) driven by personnel costs, medical normalization and compensation tied to trailing headcount growth.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Revenue and Margin Expansion
Q4 non-GAAP revenue of $633M, up 7% YoY; fiscal 2026 non-GAAP revenue of $2.5B, up 7% YoY. Q4 non-GAAP operating margin 21%; full-year non-GAAP margin 24%, up 92 basis points YoY (third consecutive year of margin expansion ≥60 bps).
Read all positive 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
Income Statement
83
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
78
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.50B | 2.38B | 2.22B | 2.08B | 1.94B |
| Gross Profit | 1.08B | 1.01B | 916.07M | 858.64M | 814.27M |
| EBITDA | 819.48M | 801.23M | 714.31M | 680.37M | 652.27M |
| Net Income | 502.78M | 455.75M | 381.82M | 366.65M | 362.92M |
Balance Sheet | |||||
| Total Assets | 3.15B | 3.04B | 3.04B | 2.92B | 2.77B |
| Cash, Cash Equivalents and Short-Term Investments | 12.06M | 101.95M | 101.95M | 38.28M | 12.24M |
| Total Debt | 40.00M | 0.00 | 0.00 | 150.00M | 275.00M |
| Total Liabilities | 1.09B | 913.14M | 913.14M | 1.08B | 1.17B |
| Stockholders Equity | 2.05B | 2.13B | 2.13B | 1.84B | 1.61B |
Cash Flow | |||||
| Free Cash Flow | 694.86M | 588.15M | 509.92M | 342.38M | 469.97M |
| Operating Cash Flow | 761.96M | 641.50M | 568.04M | 381.56M | 504.63M |
| Investing Cash Flow | -277.74M | -232.16M | -240.16M | -409.67M | -196.34M |
| Financing Cash Flow | -574.12M | -345.67M | -301.83M | -8.43M | -310.49M |
Jack Henry & Associates Technical Analysis
Positive
173.62
Price Trends
154.60
Positive
146.82
Positive
158.62
Positive
Market Momentum
4.27
Positive
57.47
Neutral
22.79
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 173.62 is above the 20-day moving average (MA) of 162.46, above the 50-day MA of 154.60, and above the 200-day MA of 158.62, indicating a bullish trend. The MACD of 4.27 indicates Positive momentum. The RSI at 57.47 is Neutral, neither overbought nor oversold. The STOCH value of 22.79 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Jack Henry & Associates Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $11.61B | 23.73 | 23.49% | 1.45% | 6.66% | 11.84% | |
81 Outperform | $19.71B | 17.84 | 40.25% | 2.32% | 8.53% | 35.29% | |
70 Outperform | $21.60B | 6.42 | 22.57% | 4.01% | 18.26% | 2280.55% | |
67 Neutral | $28.18B | 10.15 | 10.77% | 0.49% | -1.17% | -13.24% | |
65 Neutral | $221.30B | 20.51 | 33.52% | 2.87% | 7.90% | 82.11% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | $1.26B | 22.02 | 6.69% | ― | -5.34% | ― |
* General Sector Average
JKHY
Jack Henry & Associates
165.64
5.54
3.46%
BR
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172.88
-73.92
-29.95%
FIS
Fidelity National Info
41.89
-24.91
-37.29%
FISV
Fiserv
53.00
-82.21
-60.80%
IBM
International Business Machines
234.89
-14.71
-5.89%
VYX
NCR Voyix
9.14
-3.95
-30.18%
Jack Henry & Associates Corporate Events
Business Operations and StrategyExecutive/Board Changes
Jack Henry & Associates refreshes board with new director
Positive
Aug 24, 2026
On 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 Risk Com...
Business Operations and StrategyExecutive/Board Changes
Jack Henry & Associates Announces Board Leadership Transition Plan
Neutral
Jun 4, 2026
On June 4, 2026, Jack Henry Associates announced that long-time leader David Foss will retire as board chair and director effective July 15, 2026, concluding a tenure that included roles as president from 2014 to 2022 and chief executive officer ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.