Revenue Growth Momentum
Revenue grew 7.9% year-over-year to $619.3M in Q2 FY2026, up from $573.8M in the prior-year period, reflecting continued demand for JKHY's financial technology solutions.
Source: 10-Q Income Statement
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
JKHY delivered strong Q2 FY2026 results with revenue up 7.9% to $619.3M and operating income surging 29.4% to $159.1M, driven by significant margin expansion and disciplined cost management.
Revenue
$619.33M
+7.93% YoY
EPS (Diluted)
$1.72
+28.36% YoY
Operating Income
$159.15M
+29.39% YoY
Source: SEC XBRL
Jack Henry & Associates (JKHY) reported Q2 FY2026 revenue of $619.33M, up 7.9% year over year. Operating margin was 25.7%, up 4.3 points from 21.4% a year earlier. JKHY's fiscal Q2 FY2026 corresponds to calendar Q4 2025.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 1.71 | 1.49 | Beat +14.9% |
| Dec 2025This filing | 1.72 | 1.46 | Beat +17.8% |
| Sep 2025 | 1.97 | 1.75 | Beat +12.9% |
| Jun 2025 | 1.75 | 1.61 | Beat +8.7% |
Reported EPS of $1.72 versus the $1.46 analyst consensus — a +17.8% beat for Dec 2025.
Compiled by AI from this SEC filing
Revenue grew 7.9% year-over-year to $619.3M in Q2 FY2026, up from $573.8M in the prior-year period, reflecting continued demand for JKHY's financial technology solutions.
Source: 10-Q Income Statement
Operating income jumped 29.4% to $159.1M, with operating margin expanding approximately 426 basis points to 25.7% from 21.4%, demonstrating strong operating leverage as revenue growth outpaced cost growth.
Source: 10-Q Income Statement
SG&A expenses declined 12.9% year-over-year to $67.0M from $76.9M, a key driver of margin expansion and suggesting improved operational efficiency or reduced discretionary spending.
Source: 10-Q Income Statement
On a fiscal year-to-date basis, share buybacks surged 634.5% to $125.2M compared to $17.1M in the prior-year period, while dividends paid increased 4.7% to $84.0M, reflecting strong capital return commitment.
Source: 10-Q Cash Flow Statement
Fiscal year-to-date operating cash flow increased 32.3% to $273.3M from $206.5M, significantly outpacing net income growth and underscoring high earnings quality and cash conversion.
Source: 10-Q Cash Flow Statement
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
Cash and equivalents stood at only $28.2M as of Q2 FY2026, a modest level relative to the company's revenue base of over $619M per quarter. While operating cash flow is strong, limited cash on hand could constrain flexibility in the event of unexpected disruptions.
Source: 10-Q Balance Sheet
Share buybacks surged 634.5% year-to-date to $125.2M, combined with $84.0M in dividends, resulting in total financing outflows of $191.2M. Sustaining this pace of capital return could limit the company's ability to invest in acquisitions or weather economic downturns.
Source: 10-Q Cash Flow Statement
R&D expense grew only 2.8% year-over-year to $42.2M, well below revenue growth of 7.9%. In a competitive fintech environment, underinvestment in product development could erode JKHY's competitive positioning over time.
Source: 10-Q Income Statement
JKHY's business is heavily dependent on community and mid-tier banks and credit unions, making it vulnerable to consolidation trends in the banking sector. A wave of bank mergers or failures could reduce the addressable customer base and pressure revenue growth.
Source: 10-Q, general business context
Long-term debt declined 66.7% to $20.0M from $60.0M, reflecting significant deleveraging. While this strengthens the balance sheet, it also means the company has limited use of low-cost debt financing for future strategic investments or acquisitions.
Source: 10-Q Balance Sheet
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $M | 619.33 $M | 573.85 $M | +7.93% |
Cost of Revenue $M | 350.99 $M | 332.85 $M | +5.45% |
Operating Income $M | 159.15 $M | 123.00 $M | +29.39% |
Net Income $M | 124.67 $M | 97.85 $M | +27.41% |
EPS (Basic) $ | 1.73 $ | 1.34 $ | +29.10% |
EPS (Diluted) $ | 1.72 $ | 1.34 $ | +28.36% |
R&D Expense $M | 42.23 $M | 41.10 $M | +2.76% |
SG&A Expense $M | 66.97 $M | 76.90 $M | -12.92% |
Answers draw on this SEC filing and the data on this page
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