AI Takeaway
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.
Revenue
$636.25M
++8.74% YoY
EPS (Basic)
$1.71
++11.76% YoY
Operating Income
$155.05M
++11.75% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 8.7% YoY to $636.2M in Q3 FY2026 from $585.1M in the prior-year period, indicating sustained demand for JKHY's financial technology solutions across its customer base.
Source: Source: 10-Q Income Statement
Operating income rose 11.8% YoY to $155.0M, with operating margin expanding approximately 65 basis points to 24.4% from 23.7%, demonstrating that revenue growth is outpacing cost increases and driving meaningful operating leverage.
Source: Source: 10-Q Income Statement
R&D expense increased 14.5% YoY to $45.1M, growing faster than revenue, suggesting JKHY is investing aggressively in new product capabilities and technology innovation to sustain its competitive position.
Source: Source: 10-Q Income Statement
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Upgrade to unlockYTD share buybacks surged 711.4% to $284.4M, contributing to a 48.4% decline in cash and equivalents to just $20.6M. This aggressive capital return strategy significantly reduces liquidity buffers and could constrain financial flexibility if business conditions deteriorate.
Source: Source: 10-Q Balance Sheet & Cash Flow Statement
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Upgrade to unlockReported EPS of $1.71 versus the $1.49 analyst consensus — a +14.9% beat for Q3 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $636.25M | $585.09M | +8.74% |
Cost of Revenue | $363.92M | $340.59M | +6.85% |
Operating Income | $155.05M | $138.74M | +11.75% |
Net Income | $122.89M | $111.11M | +10.61% |
EPS (Basic) | $1.71 | $1.53 | +11.76% |
EPS (Diluted) | $1.71 | $1.52 | +12.50% |
R&D Expense | $45.11M | $39.41M | +14.46% |
SG&A Expense | $72.17M | $66.35M | +8.77% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $3.05B | $2.93B | +4.04% |
Current Assets | $594.84M | $593.24M | +0.27% |
Total Liabilities | $915.75M | $895.59M | +2.25% |
Current Liabilities | $341.13M | $435.62M | -21.69% |
Stockholders' Equity | $2.13B | $2.04B | +4.83% |
Cash & Equivalents | $20.57M | $39.87M | -48.40% |
Long-Term Debt | $90M | $80M | +12.50% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $459.29M | $314.39M | +46.09% |
Investing Cash FlowYTD | $-220.15M | $-176.32M | -24.86% |
Financing Cash FlowYTD | $-320.52M | $-136.49M | -134.83% |
Dividends PaidYTD | $127.46M | $122.46M | +4.08% |
Share BuybacksYTD | $284.41M | $35.05M | +711.41% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 24.4% | 23.7% | +0.66% |
Net Margin | 19.3% | — | — |
ROE | 5.8% | — | — |
ROA | 4.0% | — | — |
Current Ratio | $1.744 | — | — |
Debt to Equity | $0.429 | — | — |
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JKHY reported Q3 FY2026 revenue of $636.2M, up 8.7% YoY, and net income of $122.9M, up 10.6% YoY. Diluted EPS came in at $1.71, a 12.5% increase from $1.52 in the prior-year quarter.
JKHY's 8.7% revenue growth to $636.2M in Q3 FY2026 was supported by strong demand for its financial technology services, with operating income growing even faster at 11.8% to $155.0M, indicating solid business momentum. The company also increased R&D spending by 14.5% to $45.1M, suggesting continued investment in product development to sustain future growth.
JKHY maintains a healthy balance sheet with total assets of $3.05B, stockholders' equity of $2.13B, and a conservative debt-to-equity ratio of 0.43. The current ratio of 1.74 indicates adequate short-term liquidity, though cash and equivalents declined 48.4% to $20.6M due to aggressive share buybacks totaling $284.4M YTD.
On a YTD basis through Q3 FY2026, JKHY returned $284.4M via share buybacks (up 711.4% YoY) and $127.5M in dividends, totaling approximately $411.9M in shareholder returns. This significant increase in buybacks reflects management's confidence in the company's financial position and long-term outlook.
Key risks include a sharp 48.4% decline in cash to $20.6M driven by aggressive buybacks, rising R&D and SG&A costs growing at or above revenue rates, and accelerating financing outflows of -$320.5M YTD. While leverage remains modest with long-term debt of only $90M, the pace of capital returns could strain liquidity if operating cash flow growth moderates.