JACK HENRY & ASSOCIATES (JKHY) Company Report

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.

1 day ago

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.

1 day ago

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.

1 day ago

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

Jack Henry & Associates reports Q1 FY26 results

JKHY

Earnings

Guidance Update

Share Buyback

GAAP revenue of $644.7 million, up 7.3%, GAAP operating income of $184.1 million, up 21.7%, and GAAP EPS of $1.97
Non-GAAP adjusted revenue rose 8.7% and adjusted operating income grew 18.6% year-over-year
Cash and cash equivalents at $36.2 million versus $43.2 million a year earlier; debt outstanding fell to $20 million from $140 million
Full-year FY26 guidance set at GAAP revenue of $2.491 billion to $2.514 billion and EPS of $6.38 to $6.49
Company deployed strong free cash flow to $100 million of share repurchases in Q1 and October

Nov 4, 2025, 9:18 PM

8-K

Jack Henry & Associates reports fiscal Q1 2026 results

JKHY

Earnings

Guidance Update

GAAP revenue rose 7.3% year-over-year to $644.7 million, GAAP operating income increased 21.7% to $184.1 million, and GAAP EPS was $1.97 vs. $1.63 prior year.
Non-GAAP adjusted revenue grew 8.7% to $636.1 million and non-GAAP adjusted operating income climbed 18.6% to $173.2 million.
Cash and cash equivalents totaled $36.2 million and debt outstanding was reduced to $20 million as of September 30, 2025.
The company completed its acquisition of Victor Technologies, enhancing its fintech capabilities.
Fiscal 2026 guidance calls for GAAP revenue of $2.491–2.514 billion, GAAP EPS of $6.38–6.49, and non-GAAP adjusted revenue of $2.465–2.488 billion.

Nov 4, 2025, 9:15 PM

Press Release

Jack Henry acquires Victor Technologies to expand PaaS capabilities

JKHY

M&A

Jack Henry & Associates has acquired Victor Technologies, a cloud-native, API-first embedded payments provider, from MVB Financial Corp., enhancing its Payments-as-a-Service offerings.
Victor processes billions of dollars in payments monthly and is already integrated with Jack Henry’s SilverLake core and JHA PayCenter platforms.
The deal is expected to be minimally dilutive to GAAP EPS in fiscal 2026 and 2027, turning accretive in fiscal 2028.
The PaaS market is projected to grow from $19.1 billion in 2025 to $43.9 billion by 2029 at a 23.1% CAGR.

Oct 1, 2025, 12:30 PM

Press Release

Jack Henry reports Q4 2025 results and FY26 guidance

JKHY

Earnings

Guidance Update

Product Launch

Q4 & FY25 financials: Q4 non-GAAP revenue +7.5%, non-GAAP operating margin 23.2% (↑146 bps); FY25 non-GAAP revenue $2.30 B and operating income $541.1 M; Q4 GAAP EPS $1.75 (↑26%), FY EPS $6.24 (↑19%).
Strong cash flow & capital return: FY25 operating cash flow $642 M; free cash flow $410 M (90% conversion); trailing ROIC 22%; zero debt; $35 M share repurchases; $165 M dividends.
FY26 guidance: GAAP revenue growth 4.2–5.4%; non-GAAP 5.8–7%; non-GAAP margin expansion 20–40 bps; GAAP EPS $6.32–6.44; tax rate ~23.75%; deconversion revenue $16 M; Q1 non-GAAP rev growth ~7–7.5%.
Sales momentum & cloud adoption: FY25 core wins totaled 51 deals ($53 B assets), including 23 in Q4; 37 core migrations to private cloud (11 in Q4); 77% of core clients hosted privately.
Product & platform innovation: completed ISO 20022 Fedwire migration; 376 Zelle, 414 RTP, 401 FedNow clients; Banno platform at 14.3 M users (+17% YoY); launched TAP2Local and Rapid Transfers; 20 cloud-native components live.

Aug 20, 2025, 5:20 PM

Earnings Transcripts

Quarterly earnings call transcripts for JACK HENRY & ASSOCIATES.

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