JKHY
FinancialsJack Henry & Associates
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Market Data
Financials
XBRL · SEC EDGAR2010–2025(16yr)| Metric | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $836.6M | $966.9M | $1.0B | $1.1B | $1.2B | $1.3B | $1.4B | $1.4B | $1.5B | $1.6B | $1.7B | $1.8B | $1.9B | $2.1B | $2.2B | $2.4B | +7.2% |
| Gross Profit | $345.1M | $399.3M | $423.7M | $477.0M | $518.6M | $535.9M | $581.0M | $612.1M | $663.0M | $629.7M | $688.6M | $694.8M | $814.3M | $858.6M | $916.1M | $1.0B | +10.7% |
| Gross Margin | 41.3% | 41.3% | 41.3% | 42.2% | 42.9% | 42.7% | 42.9% | 42.8% | 43.1% | 40.6% | 40.6% | 39.5% | 41.9% | 41.3% | 41.3% | 42.7% | +1.4pp |
| Operating Income | $182.3M | $216.3M | $236.2M | $265.5M | $312.0M | $317.9M | $361.7M | $367.7M | $392.4M | $347.3M | $380.6M | $398.7M | $474.6M | $480.7M | $489.4M | $568.7M | +16.2% |
| Operating Margin | 21.8% | 22.4% | 23.0% | 23.5% | 25.8% | 25.3% | 26.7% | 25.7% | 25.5% | 22.4% | 22.4% | 22.7% | 24.4% | 23.1% | 22.1% | 23.9% | +1.9pp |
| Net Income | $117.9M | $137.5M | $155.0M | $176.6M | $201.1M | $211.2M | $248.9M | $245.8M | $376.7M | $271.9M | $296.7M | $311.5M | $362.9M | $366.6M | $381.8M | $455.7M | +19.4% |
| Net Margin | 14.1% | 14.2% | 15.1% | 15.6% | 16.6% | 16.8% | 18.4% | 17.2% | 24.5% | 17.5% | 17.5% | 17.7% | 18.7% | 17.6% | 17.2% | 19.2% | +2.0pp |
| Free Cash Flow | $164.2M | $208.0M | $223.1M | $262.9M | $308.5M | $319.4M | $308.8M | $315.4M | $372.0M | $377.5M | $457.0M | $439.1M | $470.0M | $342.4M | $509.9M | $588.1M | +15.3% |
| FCF Margin | 19.6% | 21.5% | 21.7% | 23.3% | 25.5% | 25.4% | 22.8% | 22.0% | 24.2% | 24.3% | 26.9% | 25.0% | 24.2% | 16.5% | 23.0% | 24.8% | +1.7pp |
| EPS (Diluted) | $1.38 | $1.59 | $1.78 | $2.04 | $2.36 | $2.59 | $3.12 | $3.14 | $4.85 | $3.52 | $3.86 | $4.12 | $4.94 | $5.02 | $5.23 | $6.24 | +19.3% |
1. THE BIG PICTURE
Jack Henry is successfully defending its "premium" market position by transitioning its client base from on-premise hardware to a cloud-native, API-first platform. While Jack Henry & Associates faces a structural headwind as its bank and credit union clients merge and disappear, it is offsetting this volume loss by deepening its integration into the payments ecosystem, particularly through high-growth digital and real-time transaction services.
2. WHERE THE RISKS HIT HARDEST
Jack Henry & Associates’s "excellent retention rates" and "client-centric culture" (10-K Item 1) are directly threatened by Data Security and Cyber-Attacks. Because Jack Henry operates on six-year contracts and manages proprietary source code, a single breach could compromise the trust that underpins its recurring revenue model. Furthermore, the Modernization Strategy involving the public cloud-native Jack Henry Platform increases Third-Party Service Provider Reliance. Moving away from on-premise implementations means Jack Henry’s service integrity is now tethered to external hosting environments; a failure there could lead to direct revenue loss and damage claims (10-K Item 1A).
3. WHAT THE NUMBERS SAY TOGETHER
The financial data reveals a company that is becoming significantly more efficient even as its market matures. While TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter revenue growth stands at 7.2% (XBRL), the most recent quarter showed a 7.9% increase, suggesting a slight acceleration (8-K). This is largely fueled by a 52.1% surge in "faster payments" products, indicating that the business mix is shifting toward high-velocity transaction processing.
Most notably, net income growth of 27.4% is far outstripping revenue growth (10-Q). This divergence is partly structural—driven by the higher-margin "Processing" segment, which grew 9.1%—and partly temporary, aided by "lower than normal medical claims" on Jack Henry & Associates’s self-insured plan (8-K). With short interest at 5.3% of the float (Yahoo Finance), some market participants appear skeptical that this level of earnings outperformance can be sustained without a corresponding acceleration in the top line.
4. IS IT WORTH IT AT THIS PRICE?
Jack Henry trades at a significant premium to its peer group. At a 24.5x Forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations, it sits 121% above the peer median of 11.1x (XBRL).
- Market Expectations: According to (CAPM analysis), the current price implies a long-term growth rate of 4.4%.
- Fundamentals: Jack Henry & Associates’s actual TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter growth of 7.2% and its 19.7% net margin—the second-highest in its peer group—provide a fundamental cushion for this premium.
- Risk to Valuation: The primary factor that could compress this multiple is industry consolidation. Management explicitly notes that finding fairly priced acquisitions to fill product gaps is becoming "increasingly difficult" (10-K Item 1). If Jack Henry cannot find new ways to grow within a shrinking pool of banks, investors may be less willing to pay 24x earnings for a maturing incumbent.
5. WHAT WOULD CHANGE THIS VIEW?
- Cautious if GAAPGAAPGenerally Accepted Accounting Principles — the standard U.S. accounting rules all public companies must follow operating margins fall below the guided 24.3% floor, which would suggest that the "cost discipline" cited by the CFO is losing steam (8-K).
- Constructive if the "faster payments" segment maintains growth above 40%, proving that Jack Henry can successfully transition from a back-office processor to a front-end transaction leader.
6. BOTTOM LINE
Structural Advantage: High switching costs and deep operational "stickiness" created by six-year contracts and a single-point-of-contact service model for core banking systems. Bottom Line: Jack Henry is a high-quality, high-priced defensive play that must rely on product innovation to outrun the steady disappearance of its traditional customer base.
1. Top 5 Material Risks
- Data Security and Cyber-Attacks: Jack Henry & Associates faces constant threats from cyber-criminals and state-sponsored actors using viruses, ransomware, and AI-enabled phishing. A successful breach could compromise proprietary source code, trade secrets, and client data, leading to significant remediation costs and legal liability.
- Technological Infrastructure Failure: Jack Henry & Associates’s reliance on complex technological infrastructure and outsourcing facilities exposes it to service interruptions from hardware defects, human error, or natural disasters. Prolonged outages can result in direct revenue loss and damage claims.
- Payment Transaction Integrity: As a processor of significant volumes of debit, credit, ACH, and real-time payments (such as Zelle and FedNow), any compromise in processing integrity or fraud detection could result in direct financial loss and reputational damage.
- Third-Party Service Provider Reliance: Jack Henry & Associates increasingly relies on third-party hosting environments and vendors. A failure by these providers—whether due to cybersecurity events, operational breakdowns, or financial instability—could disrupt service delivery and lead to client loss.
- Competitive Market Pressures: Jack Henry & Associates competes against software vendors and service providers on product quality, reliability, and pricing. If competitors offer more favorable terms or functionality, Jack Henry & Associates may be forced to lower prices, negatively impacting operating results.
2. Company-Specific Risks
- Client Contract Renewals: With client contracts typically running for six years, Jack Henry & Associates faces recurring renewal cycles where clients may renegotiate pricing or reduce services. Price compression during these renewals can negatively impact profit margins.
- Expansion into Non-Traditional Markets: By marketing services to non-regulated clients outside its traditional financial institution base, Jack Henry & Associates faces increased exposure to credit risks, bad debts, and litigation costs.
- AI Integration Risks: The adoption of AI and machine learning introduces risks related to algorithmic bias, factual errors, and "explainability" issues. Ineffective governance of these tools could lead to unintended consequences, regulatory action, or litigation.
- Software Installation and Update Defects: Complex software products and updates may contain undetected defects that cause service interruptions or integration difficulties, potentially resulting in negative publicity and claims against Jack Henry & Associates.
3. Regulatory/Legal Risks
- Financial Industry Supervision: Jack Henry & Associates is subject to ongoing examination by agencies including the Office of the Comptroller of the Currency, the Federal Reserve Board, the FDIC, the CFPB, and the NCUA. Failure to meet supervisory expectations can lead to regulatory actions that harm client relationships.
- Data Privacy and Cybersecurity Regulation: Jack Henry & Associates must navigate a fragmented and growing landscape of state and federal privacy laws. Lack of uniformity in these regulations creates challenges for data governance and may require costly changes to internal processes.
- Payment Network Compliance: Jack Henry & Associates must adhere to rules set by Visa, MasterCard, and other payment networks. Failure to comply with these standards or Payment Card Data Security Standards can result in fines or the termination of certifications, limiting the ability to service clients.
- Intellectual Property Litigation: Jack Henry & Associates faces the risk of infringement claims regarding its software solutions. If unsuccessful in defending these claims, Jack Henry & Associates could be forced to pay damages or cease selling certain applications.
4. Financial Impact Map
Data Security Breaches → Results of Operations and Financial Condition → Substantial capital and resource expenditure required for remediation and potential liability. Technological Infrastructure Failure → Revenue → Potential reduction in revenue due to prolonged service interruptions or loss of clients. Payment Transaction Failures → Financial Position → Potential financial loss from defaults on short-term credit issued to counterparties during the settlement process. Client Contract Renewals → Profit Margins → Price compression during contract renegotiations can negatively impact margins. Goodwill and Intangible Asset Impairment → Operating Earnings → A write-down of assets to fair value would result in a charge to operating earnings.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 10-Q | Feb 2026 | Dec 2025 |
| 8-K | Feb 2026 | — |
| 14A | Oct 2025 | — |
| 10-K | Aug 2025 | Jun 2025 |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
Jack Henry Q1 revenue $636.2M +10.6%, EPS $1.71 beats estimates by 14.9%
- ▸Q1 revenue $636.2M, up 10.6% year-over-year
- ▸GAAP EPS $1.71, beating consensus estimates by 14.9%
- ▸FY2026 revenue guidance reaffirmed at approximately $2.53B
- ▸Revenue growth driven by strong demand for financial technology services
- ▸Performance aligns with analyst expectations for full-year outlook
Jack Henry Q3 EPS beats estimates by 19.37%, revenue rises 3.40%
- ▸Q3 earnings per share beat consensus estimates by 19.37%
- ▸Q3 revenue exceeded analyst expectations by 3.40%
- ▸Financial results reflect performance for quarter ended March 2026
JKHY Q3 GAAP EPS $1.71 up 12.2%, Revenue +8.7% to $595M
- ▸Q3 GAAP EPS $1.71, up 12.2% YoY
- ▸Q3 GAAP revenue $595M, up 8.7% YoY
- ▸Q3 GAAP operating income increased 11.8% YoY
- ▸Faster payments revenue grew 46.4% in Q3
- ▸Repurchased $159M of stock during Q3 at average $162/share
JKHY Q4 revenue +9%, EPS +21% on strong demand and raised fiscal guidance
- ▸Adjusted revenue +9% YoY driven by favorable demand and market share gains
- ▸Earnings per share +21% YoY reflecting strong margin expansion
- ▸Raised fiscal year revenue and earnings guidance
- ▸Gaining market share against Fiserv amid competitor's core platform consolidation
- ▸Market capitalization $11.096 billion as of March 27, 2026
Jack Henry Q2 2026 revenue +7.9% YoY, cloud revenue grows 11%
- ▸Q2 2026 revenue growth of 7.9% YoY
- ▸Cloud revenue +11% YoY, representing 32% of total revenue
- ▸77% of core clients now hosted in private cloud
- ▸Stock trading at $165.38, estimated fair value $203.21
- ▸Share price moved 4.6% following Q2 results