Jack Henry & Associates (JKHY)
NASDAQ:JKHY
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Jack Henry & Associates
(NASDAQ:JKHY)
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Rating:74Outperform
Price Target:
$176.00
▲(14.24% Upside)
Action:ReiteratedDate:03/27/26
The score is driven primarily by strong financial quality (high margins, robust free cash flow, and minimal leverage) and a positive earnings update with raised full-year guidance. Offsetting factors are weak current technical momentum (below major moving averages with negative MACD) and a premium P/E that limits valuation support, with management also flagging potential H2 growth and margin normalization pressures.
Positive Factors
Balance Sheet Strength
Extremely low leverage and a very conservative balance sheet provide durable financial flexibility. This reduces solvency risk in downturns, supports continued share repurchases, dividends and selective M&A, and preserves capacity to fund cloud migrations or client conversions without relying on external financing.
Negative Factors
Slowing Top‑Line Growth
A materially decelerated revenue growth rate constrains long-run EPS and return expansion potential. With margins already high, slower top-line growth forces greater reliance on cost leverage or M&A to drive returns, and leaves the company more exposed if payments or conversion momentum softens.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Strength
Extremely low leverage and a very conservative balance sheet provide durable financial flexibility. This reduces solvency risk in downturns, supports continued share repurchases, dividends and selective M&A, and preserves capacity to fund cloud migrations or client conversions without relying on external financing.
Read all positive factors
Jack Henry & Associates (JKHY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.90B
Dividend Yield1.25%
Average Volume (3M)901.33K
Price to Earnings (P/E)26.5
Beta (1Y)0.13
Revenue Growth8.41%
EPS Growth25.60%
CountryUS
Employees7,170
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.72
Shares Outstanding72,167,366
10 Day Avg. Volume858,835
30 Day Avg. Volume901,332
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 Cap1.02
Enterprise Value/Revenue4.52
Enterprise Value/Gross Profit10.31
Enterprise Value/Ebitda12.79
Forecast
1Y Price Target
$201.57Price Target Upside30.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
EPS Forecast (FY)6.7
Revenue Forecast (FY)$2.52B
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 software and technology services to banks and credit unions under recurring and usage-based arrangements. Key revenue streams include: (1) Core processing and related services: fees for prov...
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 Earnings Call Summary
Earnings Call Date:Feb 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 05, 2026
Earnings Call Sentiment Positive
The earnings call conveyed broadly positive momentum: record quarterly revenue, substantial margin expansion, strong cash generation, raised guidance, meaningful core wins and accelerating product innovation (cloud, payments, SMB solutions, stablecoin testing). Management acknowledged near-term headwinds—deconversion activity, expected H2 normalization of benefits and some timing/one-time items—that will temper back-half results and add execution demands as competitor consolidation creates larger opportunities. On balance, the company demonstrated healthy fundamentals, improving returns and constructive capital allocation while noting manageable short-term pressures.Positive Updates
Record Quarterly Revenue and Margin Expansion
Non-GAAP revenue of $611 million, up 6.7% year-over-year; non-GAAP operating margin of 25.1%, representing 355 basis points of margin expansion versus prior-year Q2. GAAP and non-GAAP revenue grew ~8% year-to-date.
Negative Updates
Deconversion / M&A-Related Revenue Headwinds
Q2 deconversion revenue was approximately $6 million; company raised fiscal 2026 deconversion revenue guidance to $28 million. Management notes deconversion dollar amount has limited correlation to number of transactions but continues to reflect steady M&A activity.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Revenue and Margin Expansion
Non-GAAP revenue of $611 million, up 6.7% year-over-year; non-GAAP operating margin of 25.1%, representing 355 basis points of margin expansion versus prior-year Q2. GAAP and non-GAAP revenue grew ~8% year-to-date.
Read all positive updates
Company Guidance
The company raised and tightened its fiscal 2026 outlook: deconversion revenue guidance was increased to $28 million; full‑year GAAP revenue growth is now guided to 5.6%–6.3% while non‑GAAP revenue growth is guided to 6.4%–7.1%; non‑GAAP operating margin expansion is expected to be +50–75 basis points (noting Q2 non‑GAAP margin was 25% and YTD 26%); full‑year GAAP EPS is guided to $6.61–$6.72 (growth of ~6%–8%), with a GAAP tax rate estimate of 23.25%; free cash flow conversion is expected to be 90%–100% (bias to the higher end); Victor acquisition impacts will be excluded from non‑GAAP results, the company expects to exit the year debt‑free, and management cautioned the second half should show lower non‑GAAP revenue growth and some margin compression as medical benefits normalize and cloud migration, commissions and workforce timing pressures occur.Jack Henry & Associates Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
92
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.46B | 2.38B | 2.22B | 2.08B | 1.94B | 1.76B |
| Gross Profit | 1.08B | 1.01B | 916.07M | 858.64M | 814.27M | 694.83M |
| EBITDA | 870.78M | 801.23M | 714.31M | 680.37M | 652.27M | 696.76M |
| Net Income | 507.37M | 455.75M | 381.82M | 366.65M | 362.92M | 311.47M |
Balance Sheet | ||||||
| Total Assets | 3.06B | 3.04B | 3.04B | 2.92B | 2.77B | 2.46B |
| Cash, Cash Equivalents and Short-Term Investments | 28.22M | 101.95M | 101.95M | 38.28M | 12.24M | 48.79M |
| Total Debt | 107.41M | 0.00 | 0.00 | 150.00M | 275.00M | 115.13M |
| Total Liabilities | 856.99M | 913.14M | 913.14M | 1.08B | 1.17B | 1.07B |
| Stockholders Equity | 2.20B | 2.13B | 2.13B | 1.84B | 1.61B | 1.38B |
Cash Flow | ||||||
| Free Cash Flow | 654.23M | 588.15M | 509.92M | 342.38M | 469.97M | 313.24M |
| Operating Cash Flow | 708.22M | 641.50M | 568.04M | 381.56M | 504.63M | 504.63M |
| Investing Cash Flow | -268.17M | -232.16M | -240.16M | -409.67M | -196.34M | -196.34M |
| Financing Cash Flow | -437.48M | -345.67M | -301.83M | -8.43M | -310.49M | -310.49M |
Jack Henry & Associates Technical Analysis
Negative
154.06
Price Trends
161.24
Negative
171.49
Negative
166.09
Negative
Market Momentum
-3.07
Negative
42.71
Neutral
48.74
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 154.06 is below the 20-day moving average (MA) of 156.12, below the 50-day MA of 161.24, and below the 200-day MA of 166.09, indicating a bearish trend. The MACD of -3.07 indicates Negative momentum. The RSI at 42.71 is Neutral, neither overbought nor oversold. The STOCH value of 48.74 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $10.90B | 26.50 | 23.75% | 1.25% | 8.41% | 25.60% | |
73 Outperform | $4.75B | 17.71 | 25.50% | ― | 13.56% | 27.82% | |
73 Outperform | $5.74B | 14.72 | 21.81% | 1.41% | 6.60% | 10.28% | |
70 Outperform | $3.49B | 61.03 | 12.67% | ― | 37.25% | 50.54% | |
68 Neutral | $6.14B | 30.32 | 10.27% | ― | 15.42% | -14.70% | |
64 Neutral | $11.09B | 23.00 | 13.15% | ― | 9.58% | 14.11% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
JKHY
Jack Henry & Associates
152.80
-18.26
-10.68%
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Jack Henry & Associates Corporate Events
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.