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
Jack Henry & Associates' fiscal 2026 was defined by broad-based demand across its financial technology platforms, with management pointing to gains in cloud data processing and hosting, card processing, and digital and faster payments as the main growth engines. The company's revenue and net income both increased at solid rates, and operating margin expanded as cost of revenue declined as a percentage of revenue. Share repurchases accelerated dramatically during the year, and the company added a modest amount of long-term debt after entering a new $1.0 billion credit facility. The main tension is that operating expenses continued to rise on higher personnel and direct costs, while total liabilities increased nearly 20% and current assets declined, partly reflecting the heavier capital returns to shareholders. Overall, the results reflect durable demand but a balance sheet that is more leveraged than a year ago, even though liquidity remains supported by strong operating cash flow.
Revenue
$2.54B
+7.12% YoY
EPS (Diluted)
$6.98
+11.86% YoY
Operating Income
$635.03M
+11.66% YoY
Audit Opinion: Unqualified opinion on consolidated financial statements and internal control over financial reporting(Report of Independent Registered Public Accounting Firm)
Source: SEC XBRL
Jack Henry & Associates (JKHY) reported FY2026 revenue of $2.54B, up 7.1% year over year. Operating margin was 25.0%, up 1.1 points from 23.9% a year earlier. Operating cash flow was $761.96M, up 18.8% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.57 | 1.49 | Beat +5.4% |
| Mar 2026 | 1.71 | 1.49 | Beat +14.9% |
| Dec 2025 | 1.72 | 1.46 | Beat +17.8% |
| Sep 2025 | 1.97 | 1.75 | Beat +12.9% |
Reported EPS of $1.57 versus the $1.49 analyst consensus — a +5.4% beat for Jun 2026.
4 reported segments · SEC XBRL
Segment revenue totals $2.54B, which is the $2.54B of consolidated revenue on the income statement.
Profit above is reported as gross profit, the measure JKHY itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-K Item 7 of this filing
Management noted that after removing deconversion revenue, acquisition revenue, and a prior-year contract change, total revenue increased 7.3%, slightly above the reported 7.1%, driven by non-acquisition growth in cloud data processing, card, digital, and faster payments.
Source: 10-K Item 7 MD&A
Operating expenses rose 5.7% (6.1% adjusted) due to higher personnel costs, increased direct costs tied to revenue growth, and higher amortization of capitalized software; cost of revenue decreased as a percentage of total revenue.
Source: 10-K Item 7 MD&A
On September 30, 2025, the company acquired substantially all assets of Victor for $42,390 thousand in cash to expand its Payments-as-a-Service capabilities with a cloud-native, API-first embedded payments platform.
Source: 10-K Item 7 MD&A
The One Big Beautiful Bill Act did not materially affect the effective tax rate, but significantly reduced cash tax payments and income taxes payable, contributing to the 18.8% increase in operating cash flow.
Source: 10-K Item 7 MD&A
The company repurchased 2,947 thousand shares for $448,173 thousand in fiscal 2026, up from $35,051 thousand in fiscal 2025, and had authority to repurchase up to 5,464 thousand additional shares at year-end.
Source: 10-K Item 7 MD&A
Compiled by AI from 10-K Item 1A of this filing · 3 high, 2 medium, 0 low
The company faces sophisticated cyberattacks, including AI-driven phishing, deepfakes, and zero-day exploits, and has experienced cybersecurity incidents in the past. A significant portion of associates work remotely, and reliance on third parties increases exposure; successful attacks could damage reputation, cause liability, and deter clients.
Source: 10-K Item 1A Risk Factors
Jack Henry processes significant and growing volumes of debit, credit, ACH, faster payments, and check clearing transactions. Disruption, processing integrity failures, or inability to detect fraudulent payments could cause financial losses, reputational damage, and regulatory consequences for the company and its clients.
Source: 10-K Item 1A Risk Factors
The company is migrating more computing, storage, and processing to public cloud and co-location facilities, increasing reliance on a limited number of third-party providers. Any disruption, capacity constraint, cybersecurity incident, or service degradation could cause outages, data loss, and loss of clients.
Source: 10-K Item 1A Risk Factors
Many outsourced processing contracts have six-year terms, and renewals present clients opportunities to renegotiate or switch providers. The company has experienced price compression on some renewals, and if that trend accelerates, revenues and margins may suffer; inflation could further squeeze profitability if costs outpace contractual price adjustments.
Source: 10-K Item 1A Risk Factors
The company uses AI and machine learning and continues to expand generative AI, but these technologies introduce accuracy, bias, intellectual property, explainability, and regulatory compliance risks. Rapidly changing federal and state AI regulations could increase compliance costs and expose the company to litigation or reputational harm.
Source: 10-K Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 2.54 $B | 2.38 $B | +7.12% |
Cost of Revenue $B | 1.43 $B | 1.36 $B | +5.36% |
Operating Income $M | 635.03 $M | 568.72 $M | +11.66% |
Net Income $M | 502.78 $M | 455.75 $M | +10.32% |
EPS (Basic) $ | 7.00 $ | 6.25 $ | +12.00% |
EPS (Diluted) $ | 6.98 $ | 6.24 $ | +11.86% |
R&D Expense $M | 176.45 $M | 162.77 $M | +8.40% |
SG&A Expense $M | 299.21 $M | 283.06 $M | +5.71% |
Answers draw on this SEC filing and the data on this page
JKHY delivered solid Q3 FY2026 results with revenue up 8.7% YoY to $636.2M and net income rising 10.6% to $122.9M, while year-to-date operating cash flow surged 46.1% to $459.3M, reflecting strong business momentum and disciplined execution.
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.
Other companies in Transaction & Payment Processing Services