Jack Henry & Associates (JKHY)
NASDAQ:JKHY
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Jack Henry & Associates
(NASDAQ:JKHY)
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Rating:77Outperform
Price Target:
$163.00
▲(19.09% Upside)
Action:Reiterated
Date:05/12/26
The score is driven primarily by strong financial performance (high margins, strong cash flow, low leverage) and an earnings call that raised FY2026 guidance and margin expectations. Offsetting these positives, technical indicators remain bearish with the stock trading below major moving averages, and valuation is only moderately supportive at ~23x earnings with a modest ~1.6% yield.
Positive Factors
Conservative Balance Sheet
Very low leverage (debt-to-equity ~0.04) and rising equity provide durable financial flexibility. Combined with an expanded $1B revolver and management's intent to be debt-free at year-end, the company can fund buybacks, tuck-in M&A, and investments through cycles, reducing refinancing and solvency risk.
Negative Factors
Slowing Top‑Line Growth
TTM revenue growth decelerated to roughly 2.1% from prior mid-single-digit rates, which is a structural headwind. Slower organic growth limits operating leverage and makes earnings progress more dependent on margin expansion, buybacks, or one-time items rather than sustainable top-line expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Very low leverage (debt-to-equity ~0.04) and rising equity provide durable financial flexibility. Combined with an expanded $1B revolver and management's intent to be debt-free at year-end, the company can fund buybacks, tuck-in M&A, and investments through cycles, reducing refinancing and solvency risk.
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
$9.92B
Dividend Yield1.25%
Average Volume (3M)1.14M
Price to Earnings (P/E)23.1
Beta (1Y)0.11
Revenue Growth8.44%
EPS Growth21.74%
CountryUS
Employees7,170
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)7.16
Shares Outstanding71,050,780
10 Day Avg. Volume1,544,707
30 Day Avg. Volume1,138,504
Financial Highlights & Ratios
PEG Ratio1.51
Price to Book (P/B)6.18
Price to Sales (P/S)5.54
P/FCF Ratio22.38
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue3.99
Enterprise Value/Gross Profit9.05
Enterprise Value/Ebitda12.08
Forecast
1Y Price Target
$183.89Price Target Upside34.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)6.85
Revenue Forecast (FY)$2.53B
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 Ot...
How the Company Makes Money
Jack Henry & Associates primarily makes money by selling technology and processing services to financial institutions under recurring, long-term customer relationships. Key revenue streams include: (1) Core processing and related fees: recurring f...
Jack Henry & Associates Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 25, 2026
Earnings Call Sentiment Positive
The call showcased multiple strong operating and financial results: record Q3 revenue, robust sales momentum (notably larger core and cross-sell 'trifecta' wins), accelerating product traction (Tap2Local, Rapid Transfers, stablecoin beta) and sizable cash generation that enabled large buybacks and dividend returns. Management raised full-year guidance and reported significant AI-driven productivity gains. Offsetting these positives, management flagged a near-term Q4 slowdown and margin pressure driven by mix, timing, normalized medical and cloud transition costs, lumpy network incentives and other seasonal/quarterly variabilities. Overall fundamentals and guidance were improved, with the company emphasizing durable, long-term tailwinds despite an expected softer Q4.Positive Updates
Record Quarterly Revenue and Strong Profitability
Non-GAAP Q3 revenue of $616 million, up 7.3% year-over-year; GAAP revenue up 9% in the quarter. Non-GAAP operating margin ~22.9% (Q3) and non-GAAP margin year-to-date 25% (195 bps improvement YTD). Q3 GAAP diluted EPS $1.71, up 12%; YTD GAAP EPS $5.41, up 20%.
Negative Updates
Anticipated Q4 Deceleration and Margin Pressure
Management expects Q4 revenue growth to be relatively lower and margins to contract due to a combination of slowing digital revenue (lower active user growth), card revenue pressure from risk management, reduced one-time network incentive revenue, normalized medical costs, increased cloud migration infrastructure expense and commissions. Q4 revenue expectation is below current analyst consensus.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Quarterly Revenue and Strong Profitability
Non-GAAP Q3 revenue of $616 million, up 7.3% year-over-year; GAAP revenue up 9% in the quarter. Non-GAAP operating margin ~22.9% (Q3) and non-GAAP margin year-to-date 25% (195 bps improvement YTD). Q3 GAAP diluted EPS $1.71, up 12%; YTD GAAP EPS $5.41, up 20%.
Read all positive updates
Company Guidance
Jack Henry raised and tightened fiscal 2026 guidance after a strong Q3: deconversion revenue guidance was increased to $37M, full‑year GAAP revenue growth is now guided to 6.1%–6.6% and non‑GAAP revenue growth to 6.6%–7.1%, full‑year non‑GAAP margin expansion was increased to 75–95 basis points (from 20–40 bps), GAAP EPS is guided to $6.78–$6.87 (up ~9%–10%), the GAAP tax rate is estimated at 23.25%, and free cash flow conversion is forecast at 95%–105% with a bias to the high end; management noted Q4 will show relatively lower non‑GAAP revenue growth and margin contraction (driven by normalized medical costs, cloud migration infrastructure, commissions and tougher comps), though full‑year consensus remains aligned. These updates follow Q3 results of $616M non‑GAAP revenue (up ~7.3% YoY) with a 22.9% non‑GAAP operating margin, Q3 GAAP revenue up 9%, Q3 operating cash flow of $186M (+72%), Q3 free cash flow of $122M (+137%), cloud at 33% of revenue, processing at 43% of revenue, and a trailing‑12‑month NOPAT ROIC of 23% (vs. 20% a year ago).Jack Henry & Associates Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.52B | 2.38B | 2.22B | 2.08B | 1.94B | 1.76B |
| Gross Profit | 1.11B | 1.01B | 916.07M | 858.64M | 814.27M | 694.83M |
| EBITDA | 830.17M | 801.23M | 714.31M | 680.37M | 652.27M | 696.76M |
| Net Income | 519.15M | 455.75M | 381.82M | 366.65M | 362.92M | 311.47M |
Balance Sheet | ||||||
| Total Assets | 3.05B | 3.04B | 3.04B | 2.92B | 2.77B | 2.46B |
| Cash, Cash Equivalents and Short-Term Investments | 20.57M | 101.95M | 101.95M | 38.28M | 12.24M | 48.79M |
| Total Debt | 90.00M | 0.00 | 0.00 | 150.00M | 275.00M | 115.13M |
| Total Liabilities | 915.75M | 913.14M | 913.14M | 1.08B | 1.17B | 1.07B |
| Stockholders Equity | 2.13B | 2.13B | 2.13B | 1.84B | 1.61B | 1.38B |
Cash Flow | ||||||
| Free Cash Flow | 727.61M | 588.15M | 509.92M | 342.38M | 469.97M | 313.24M |
| Operating Cash Flow | 786.40M | 641.50M | 568.04M | 381.56M | 504.63M | 504.63M |
| Investing Cash Flow | -275.99M | -232.16M | -240.16M | -409.67M | -196.34M | -196.34M |
| Financing Cash Flow | -529.70M | -345.67M | -301.83M | -8.43M | -310.49M | -310.49M |
Jack Henry & Associates Technical Analysis
Negative
136.87
Price Trends
153.00
Negative
163.54
Negative
162.78
Negative
Market Momentum
-4.35
Positive
37.07
Neutral
51.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JKHY, the sentiment is Negative. The current price of 136.87 is below the 20-day moving average (MA) of 145.64, below the 50-day MA of 153.00, and below the 200-day MA of 162.78, indicating a bearish trend. The MACD of -4.35 indicates Positive momentum. The RSI at 37.07 is Neutral, neither overbought nor oversold. The STOCH value of 51.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $9.92B | 23.14 | 24.03% | 1.25% | 8.44% | 21.74% | |
75 Outperform | $2.95B | 38.22 | 13.47% | ― | 33.01% | 44.89% | |
72 Outperform | $4.47B | 17.71 | 27.16% | ― | 13.35% | 18.39% | |
71 Outperform | $5.42B | 10.72 | 22.44% | 1.41% | 6.47% | 10.82% | |
64 Neutral | $10.83B | 23.00 | 13.15% | ― | 9.58% | 14.11% | |
63 Neutral | $5.39B | 22.07 | 10.67% | ― | 14.21% | -2.92% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JKHY
Jack Henry & Associates
140.19
-39.32
-21.91%
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501.35
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G
Genpact
31.91
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PAY
Paymentus Holdings
23.45
-13.71
-36.89%
Jack Henry & Associates Corporate Events
Business Operations and StrategyStock Buyback
Jack Henry Expands Share Repurchase Authorization to Boost Returns
Positive
May 12, 2026
On May 8, 2026, Jack Henry Associates’ board approved an addition of five million shares to its existing stock repurchase authorization, lifting the remaining capacity from 1.4 million to 6.4 million shares as disclosed on May 12, 2026. The...
Business Operations and StrategyPrivate Placements and Financing
Jack Henry Expands Revolving Credit Facility to $1 Billion
Positive
Mar 26, 2026
On March 25, 2026, Jack Henry Associates entered into a new five-year, $1.0 billion unsecured revolving credit facility, replacing its prior $600 million revolver that was scheduled to mature in 2027. Roughly $80 million outstanding under the old...
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.