JACK HENRY & ASSOCIATES (JKHY) Company Report

Jack Henry sees a multi-year opportunity to capture core system migrations as a competitor consolidates over a dozen platforms, leveraging its historical win rate of ~50 annual core deals.
The payments segment benefits from resilient consumer spending and accelerating adoption of FedNow, RTP and Zelle, and a new Move partnership enables instant debit transfers and small-business merchant acceptance, poised to become a major revenue driver over five years.
Deployment of 130+ AI use cases across product development and corporate functions is boosting development velocity and operational efficiency, setting up potential margin tailwinds without reducing headcount growth.
With 90–100% free cash flow conversion, Jack Henry will continue investing 14–15% of revenue in R&D, maintain its dividend, and has the flexibility for larger share buybacks and strategic M&A.

Dec 9, 2025, 11:30 AM

Transcript

Jack Henry outlines growth opportunities at 53rd Annual Nasdaq Investor Conference

JKHY

Product Launch

Revenue Acceleration/Inflection

Jack Henry serves primarily U.S. credit unions and banks through three operating segments: core processing systems (~33% of revenue), payments (card issuance & processing, enterprise payment services, faster payments), and complementary services including fraud, lending, and digital offerings.
The consolidation of a competitor’s multiple core platforms presents a multi-year opportunity for Jack Henry to capture additional core migrations, potentially exceeding its typical ~50 annual core wins as institutions face complex migrations and no immediate sunset dates.
In its payments segment, Jack Henry is achieving double-digit growth in faster payment rails (FedNow, RTP, Zelle) and has launched a small business initiative via its Move partnership to enable real-time debit transfers and POS payments for micro-merchants, targeting significant future revenue contributions.
The company reports 90–100%+ free cash flow conversion, maintains a 14–15% revenue R&D spend, and upholds its dividend growth policy while opening the door for more substantial share buybacks and strategic acquisitions aligned with its cloud-native strategy.

Dec 9, 2025, 11:30 AM

Transcript

Jack Henry discusses core migration and payments growth at Nasdaq Conference

JKHY

Revenue Acceleration/Inflection

Product Launch

M&A

Jack Henry serves banks and credit unions through three segments—core, payments, complementary—and sees a multi-year opportunity to win migrations from a competitor consolidating over 1,400 legacy core platforms.
Core contract renewals typically span 7–10 years, with institutions issuing RFPs about 2 years before expiration and migrations taking 12–18 months, implying P&L benefits will accrue over multiple years.
In payments, Jack Henry is leveraging robust consumer spending and faster-payment rails (FedNow, RTP, Zelle), and has launched a small-business instant payments solution via Mastercard Move and tap-to-pay on smartphones, projected to be a major revenue driver over the next five years.
The firm has identified 130+ AI use cases across products and corporate functions, accelerating software development and improving operational efficiency to support margin expansion.
With 90–100% free cash flow conversion restored, Jack Henry maintains 14–15% R&D investment, steady dividend growth, and now plans for significant share buybacks alongside targeted M&A, evidenced by the Victor FI deal.

Dec 9, 2025, 11:30 AM

Transcript

Jack Henry outlines growth strategy at UBS 2025 Global Technology and AI Conference

JKHY

Dividends

Share Buyback

M&A

Demand environment improving to 8–10% from 3–5% a year ago, based on Jack Henry and Bank Director surveys.
Jack Henry wins roughly 50 core deals per year from a pool of ~200 decisions, with a sustained ~50% win rate and an expected rise in opportunities due to competitor core consolidation impacting ~1,400 clients.
Migration of customers to Jack Henry’s private cloud (~77% complete) delivers a 1.75% average revenue uplift, and transitioning to the public cloud is expected to add an additional 20–25% revenue lift.
Payments growth driven by 55% year-over-year transaction increase in card processing and PayCenter faster-payment services, while SMB acquiring expanded via a Moov partnership.
Capital allocation priorities include 21 consecutive years of dividend increases, zero debt, a targeted $200 million share buyback for 2025, and strategic acquisitions like Victor Technologies to bolster cloud-native and embedded finance offerings.

Dec 3, 2025, 11:15 PM

Transcript

Jack Henry projects core demand pickup and payment-led expansion

JKHY

Revenue Acceleration/Inflection

M&A

Share Buyback

Demand environment uplifts to 8-10% in early 2025 surveys versus 3-5% in 2024, underpinning stronger pipeline momentum.
About 200 core evaluations occur annually with a 50% win rate (averaging ~52 wins), and competitor consolidation affecting ~1,400 clients is expected to drive additional opportunities.
Payments segment led by card and PayCenter solutions delivered 55% transaction growth; launched SMB merchant acquiring via Moov partnership, adding 280 Tap to Local clients.
Operational efficiency remains high as headcount grew <1% over five years against 5-7% revenue growth, supported by Lean Six Sigma practices and 130+ AI use cases.
Capital allocation includes 21 consecutive years of dividend increases, zero debt, and a $200 M share buyback guide (vs. $35 M in 2024); closed Victor Technologies acquisition to extend embedded finance services.

Dec 3, 2025, 11:15 PM

Transcript

Jack Henry outlines 2025 demand rebound and growth initiatives

JKHY

Revenue Acceleration/Inflection

M&A

Share Buyback

Jack Henry’s surveyed demand environment rose to 8–10% in early 2025 versus 3–5% in 2024, with ~200 annual core vendor decisions and a consistent ~50% win rate; a competitor’s core consolidation involving ~1,400 clients should further expand opportunity.
77% of clients have migrated from on-prem to Jack Henry’s private cloud, delivering ~2× revenue uplift (1.5% for credit unions, 2% for banks), and initial public-cloud migrations are yielding an additional 20–25% pricing lift.
Payments growth is led by rising card volumes amid improving consumer sentiment and a 55% increase in PayCenter faster-payment transactions; new SMB merchant-acquiring and real-time “rapid transfers” services via the Moov partnership are driving further momentum.
Capital allocation priorities include 21 consecutive years of dividend hikes, zero debt, a targeted $200M share-buyback program for 2025, and selective M&A—most recently the Victor Technologies acquisition to bolster embedded finance offerings.

Dec 3, 2025, 11:15 PM

Transcript

Jack Henry & Associates holds FY 2025 AGM

JKHY

Proxy Vote Outcomes

Product Launch

Revenue Acceleration/Inflection

The board nominated and elected 10 directors for terms ending at the 2026 AGM, and stockholders approved on an advisory basis the named executive officer compensation, the 2025 equity incentive plan, and ratified PricewaterhouseCoopers LLP as the independent auditor.
CEO Greg Adelson highlighted a 99% core client retention rate and growth of the Banno digital platform from zero to 14.3 million users in FY 2025, driving record revenue and operating income.
CFO Mimi Carsley reported 6.5% non-GAAP revenue growth, 70 bps margin expansion, 22%+ return on invested capital, and $410 million in free cash flow (90% conversion) for FY 2025.
Management previewed ongoing technology modernization and public cloud migration, plus new product rollouts including the Financial Crimes Defender fraud platform, SMB banking solutions, faster payments rails, and AI-enabled features.

Nov 12, 2025, 5:00 PM

Transcript

Jack Henry reports Q1 fiscal 2026 results

JKHY

Earnings

Guidance Update

M&A

Record Q1 results with non-GAAP revenue of $636 million (+8.7% YoY) and non-GAAP operating margin of 27.2% (+227 bps).
Private cloud adoption reached 77% of core clients; signed seven migrations—including an $11 billion credit union and an $8 billion bank—driving ~2× revenue per client vs on-premise.
Victor Technologies acquisition closed Sept 30, adding an API-first payments platform and enabling a USDC stablecoin proof-of-concept in two weeks.
Launched cloud-native solutions Tap2Local SMB merchant acquiring and Rapid Transfers, with initial phases deployed to Banno clients on the Jack Henry platform.
Q1 GAAP revenue +7%, non-GAAP +9%; free cash flow $69 million; $100 million in share repurchases YTD; raised FY26 guidance to 4.9–5.9% GAAP and 6–7% non-GAAP revenue growth.

Nov 5, 2025, 1:45 PM

Transcript

Jack Henry reports record Q1 FY2026 results

JKHY

Earnings

Guidance Update

M&A

Generated $636 million in non-GAAP revenue (+8.7% YoY) and 27.2% non-GAAP operating margin, with GAAP EPS of $1.97 (+21%).
Closed acquisition of Victor Technologies on September 30, expanding cloud-native, API-first payments-as-a-service and stablecoin capabilities.
Completed USDC stablecoin proof of concept in two weeks, launched cloud-native Tap-to-Local and Rapid Transfers solutions, and expanded Banno digital platform to 14.7 million registered users.
Q1 non-GAAP segment performance: Core revenue +6% (margin +114 bps), Payments +8% (margin +170 bps), Complementary +9% (margin +75 bps).
Raised full-year FY 2026 guidance to 4.9–5.9% GAAP revenue growth and 6–7% non-GAAP growth; increased deconversion revenue outlook to $20 million.

Nov 5, 2025, 1:45 PM

Transcript

Jack Henry reports Q1 2026 results

JKHY

Earnings

Guidance Update

M&A

Record Q1 non-GAAP revenue of $636 M (+8.7% YoY) and non-GAAP operating margin of 27.2% (+227 bps)
7 core client migrations to private cloud (asset size up 60% YoY: $43 B vs $69 B) resulting in 77% of core clients in private cloud; 4 competitive core wins including one >$1 B institution
Closed acquisition of Victor Technologies (Sep 30), enhancing payments-as-a-service and stablecoin capabilities; launched Tap-to-Local to 40 clients and Rapid Transfers to 48 clients
Raised FY 2026 guidance: GAAP revenue growth 4.9–5.9%, non-GAAP revenue 6–7%, margin expansion 30–50 bps, and GAAP EPS $6.38–6.49
Q1 operating cash flow $121 M, free cash flow $69 M; YTD share repurchases $100 M, dividends $42 M, expects to finish year debt-free

Nov 5, 2025, 1:45 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for JACK HENRY & ASSOCIATES.

Q1 2026

Nov 5, 2025

→

Q4 2025

Aug 20, 2025

→

Q3 2025

May 7, 2025

→

View All Transcripts

Ask Fintool AI Agent

Get instant answers from SEC filings, earnings calls & more

What did Gregory R. Adelson say about margins?What are JACK HENRY & ASSOCIATES's strategic priorities?How is JACK HENRY & ASSOCIATES positioned vs competitors?How did JACK HENRY & ASSOCIATES do last quarter?

JACK HENRY & ASSOCIATES (JKHY)

Analyst Earnings Quarterly Reports

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Executives

Gregory R. Adelson

Craig Morgan

Mimi Carsley

Renee Swearingen

Shanon McLachlan

Board Members

Curtis A. Campbell

David B. Foss

Lisa M. Nelson

Matthew C. Flanigan

Shruti S. Miyashiro

Tammy S. LoCascio

Thomas A. Wimsett

Thomas H. Wilson, Jr.

Wesley A. Brown

Analyst Coverage

James Faucette

John Davis

Andrew Schmidt

Cristopher Kennedy

David Koning

Dominick Gabriele

Jason Kupferberg

Kartik Mehta

Ken Suchoski

Rayna Kumar

Vasundhara Govil

Daniel Perlin

Peter Heckmann

Abigail Rudder

Andrew Bauch

Darrin Peller

Nik Cremo

William Nance

Will Nance

Latest news

Earnings Transcripts

Q1 2026

Q4 2025

Q3 2025

Ask Fintool AI Agent