olivLaw · US equity research
Jack Henry & Associates, Inc. JKHY
Services-Computer Integrated Systems Design · SIC 7373 · Vertical: Services-Computer Integrated Systems Design (SIC 7373)
Jack Henry & Associates provides core banking technology, payment solutions and complementary services to community and regional banks and credit unions. As the sector consolidates and demand for cloud modernization grows, the company reported revenue growth of 7.1% in fiscal 2026, with fiscal 2027 guidance that depends on market conditions.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Jack Henry & Associates, Inc. (JKHY) stock was 179.16 USD (+10.83% on the day), with market capitalisation 12.6 bn USD, P/E 25.7 on diluted EPS of 6.98 USD over the last 12 months, dividend yield 1.33%, beta 0.22, 52-week range 123.42–192.60 USD. Latest reported quarter (Q4 2026): revenue of 644.0 m USD (+4.7% YoY), net income of 111.2 m USD (−12.8% YoY), diluted EPS 1.57 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 76.1
- overbought (≥ 70)
- Bollinger (20, 2)
- 144.35 – 171.17
- above the upper band · %B 1.30 · band width 17.0%
- SMA 50 / 200
- 156.74 / 154.17
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 3.93 / 2.14
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +23.5% | −1.1% | +24.6 pp | — |
| 3 months | +16.1% | −0.5% | +16.5 pp | — |
| 6 months | +25.4% | +4.4% | +21.0 pp | — |
| Year to date | −1.8% | +12.3% | −14.1 pp | — |
| 1 year | +17.5% | +13.5% | +4.0 pp | −34.8% |
| 3 years | +23.7% | +76.4% | −52.7 pp | −27.7% |
| 5 years | +13.1% | +63.7% | −50.5 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q4 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 601.0 m | 573.8 m | 585.1 m | 615.4 m | 644.7 m | 619.3 m | 636.2 m | 644.0 m |
| Cost of revenue | 343.4 m | 332.9 m | 340.6 m | 343.9 m | 348.6 m | 351.0 m | 363.9 m | 370.2 m |
| Research & development | 39.7 m | 41.1 m | 39.4 m | 42.6 m | 39.3 m | 42.2 m | 45.1 m | 49.8 m |
| SG&A | 66.6 m | 76.9 m | 66.4 m | 73.2 m | 72.8 m | 67.0 m | 72.2 m | 87.2 m |
| Operating income | 151.3 m | 123.0 m | 138.7 m | 155.7 m | 184.1 m | 159.1 m | 155.0 m | 136.8 m |
| Pre-tax income | 156.8 m | 127.4 m | 141.9 m | 159.9 m | 190.3 m | 164.2 m | 158.5 m | 139.7 m |
| Income tax | 37.6 m | 29.5 m | 30.8 m | 32.3 m | 46.3 m | 39.5 m | 35.6 m | 28.5 m |
| Net income | 119.2 m | 97.8 m | 111.1 m | 127.6 m | 144.0 m | 124.7 m | 122.9 m | 111.2 m |
| Diluted EPS | 1.63 | 1.34 | 1.52 | 1.75 ≈ | 1.97 | 1.72 | 1.71 | 1.57 ≈ |
| Operating cash flow | 116.9 m | 89.6 m ≈ | 107.8 m ≈ | 327.1 m | 120.6 m | 152.7 m ≈ | 186.0 m ≈ | 302.7 m |
| Capex | 12.8 m | 16.7 m ≈ | 11.7 m ≈ | 12.2 m | 8.9 m | 21.2 m ≈ | 16.5 m ≈ | 20.5 m |
| Dividends paid | 40.1 m | 40.1 m ≈ | 42.3 m ≈ | 42.2 m | 42.1 m | 41.8 m ≈ | 43.5 m ≈ | 42.9 m |
| Share repurchases | 0 | 17.1 m ≈ | 18.0 m ≈ | -1.0 k | 62.0 m | 63.2 m ≈ | 159.2 m ≈ | 163.8 m |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 10 percentile of its own 30-quarter history (min 19.8, median 32.8, max 47.7; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.6 bn | 1.7 bn | 1.8 bn | 1.9 bn | 2.1 bn | 2.2 bn | 2.4 bn | 2.5 bn |
| Revenue YoY | +1.0% | +9.3% | +3.6% | +10.5% | +6.9% | +6.6% | +7.2% | +7.1% |
| Net income | 271.9 m | 296.7 m | 311.5 m | 362.9 m | 366.6 m | 381.8 m | 455.7 m | 502.8 m |
| Net income YoY | −25.5% | +9.1% | +5.0% | +16.5% | +1.0% | +4.1% | +19.4% | +10.3% |
| Diluted EPS | 3.52 | 3.86 | 4.12 | 4.94 | 5.02 | 5.23 | 6.24 | 6.98 |
| Diluted EPS YoY | −25.1% | +9.7% | +6.7% | +19.9% | +1.6% | +4.2% | +19.3% | +11.9% |
| net % | 17.5% | 17.5% | 17.7% | 18.7% | 17.6% | 17.2% | 19.2% | 19.8% |
| Free cash flow | 377.5 m | 457.0 m | 439.1 m | 470.0 m | 342.4 m | 509.9 m | 588.1 m | 694.9 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 30 Jun 2026
- Cash
- 12.1 m USD
- Financial debt
- 40.0 m USD
- Net debt
- 27.9 m USD
- Equity
- 2.1 bn USD
- Total assets
- 3.1 bn USD
- Debt / equity
- 0.02x
- Current ratio
- 1.17x
- ROE
- 24.0%
- ROA
- 16.2%
- FCF margin
- 27.3%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.8 bn | 1.9 bn | 2.1 bn | 2.2 bn | 2.4 bn | 2.5 bn | SEC (XBRL)· 28 Aug 2026verified |
| Cost of revenue | 1.1 bn | 1.1 bn | 1.2 bn | 1.3 bn | 1.4 bn | 1.4 bn | SEC (XBRL)· 28 Aug 2026verified |
| Gross profit | 694.8 m ≈ | 814.3 m ≈ | 858.6 m ≈ | 916.1 m ≈ | 1.0 bn ≈ | 1.1 bn ≈ | SEC (XBRL)· 28 Aug 2026derived |
| Research & development | 109.0 m | 121.4 m | 142.7 m | 148.3 m | 162.8 m | 176.4 m | SEC (XBRL)· 28 Aug 2026verified |
| SG&A | 187.1 m | 218.3 m | 235.3 m | 278.4 m | 283.1 m | 299.2 m | SEC (XBRL)· 28 Aug 2026verified |
| Operating income | 398.7 m | 474.6 m | 480.7 m | 489.4 m | 568.7 m | 635.0 m | SEC (XBRL)· 28 Aug 2026verified |
| Interest expense | 1.1 m | 2.4 m | 15.1 m | — | — | — | SEC (XBRL)· 24 Aug 2023verified |
| Pre-tax income | 397.7 m | 472.3 m | 474.6 m | 498.0 m | 586.0 m | 652.8 m | SEC (XBRL)· 28 Aug 2026verified |
| Income tax | 86.3 m | 109.4 m | 107.9 m | 116.2 m | 130.3 m | 150.0 m | SEC (XBRL)· 28 Aug 2026verified |
| Net income | 311.5 m | 362.9 m | 366.6 m | 381.8 m | 455.7 m | 502.8 m | SEC (XBRL)· 28 Aug 2026verified |
| Diluted EPS | 4.12 | 4.94 | 5.02 | 5.23 | 6.24 | 6.98 | SEC (XBRL)· 28 Aug 2026verified |
| Weighted average diluted shares | 75.7 m | 73.5 m | 73.1 m | 73.0 m | 73.0 m | 72.0 m | SEC (XBRL)· 28 Aug 2026verified |
| Dividend per share | 1.78 | 1.90 | 2.02 | 2.14 | 2.26 | 2.38 | SEC (XBRL)· 28 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 51.0 m | 48.8 m | 12.2 m | 38.3 m | 102.0 m | 12.1 m | SEC (XBRL)· 28 Aug 2026verified |
| Receivables | 306.6 m | 348.1 m | 361.3 m | 333.0 m | 318.0 m | 349.1 m | SEC (XBRL)· 28 Aug 2026verified |
| Current assets | 543.7 m | 613.5 m | 628.0 m | 632.0 m | 681.5 m | 649.1 m | SEC (XBRL)· 28 Aug 2026verified |
| Property, plant & equipment, net | 252.5 m | 211.7 m | 205.7 m | 215.1 m | 221.0 m | 220.5 m | SEC (XBRL)· 28 Aug 2026verified |
| Goodwill | 687.5 m | 687.5 m | 804.8 m | 804.8 m | 804.8 m | 827.7 m | SEC (XBRL)· 28 Aug 2026verified |
| Total assets | 2.3 bn | 2.5 bn | 2.8 bn | 2.9 bn | 3.0 bn | 3.1 bn | SEC (XBRL)· 28 Aug 2026verified |
| Accounts payable | 18.5 m | 21.0 m | 19.2 m | 25.3 m | 28.2 m | 34.9 m | SEC (XBRL)· 28 Aug 2026verified |
| Short-term debt | — | — | 0 | 90.0 m | 0 | — | SEC (XBRL)· 25 Aug 2025verified |
| Long-term debt | — | 115.0 m | 275.0 m | 60.0 m | 0 | 40.0 m | SEC (XBRL)· 28 Aug 2026verified |
| Current liabilities | 520.9 m | 543.8 m | 523.8 m | 633.8 m | 535.8 m | 556.2 m | SEC (XBRL)· 28 Aug 2026verified |
| Total liabilities | 1.0 bn | 1.1 bn | 1.2 bn | 1.1 bn | 913.1 m | 1.1 bn | SEC (XBRL)· 28 Aug 2026verified |
| Equity | 1.3 bn † | 1.4 bn † | 1.6 bn † | 1.8 bn † | 2.1 bn † | 2.1 bn † | SEC (XBRL)· 28 Aug 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 462.1 m | 504.6 m | 381.6 m | 568.0 m | 641.5 m | 762.0 m | SEC (XBRL)· 28 Aug 2026verified |
| Capex | 23.0 m | 34.7 m | 39.2 m | 58.1 m | 53.4 m | 67.1 m | SEC (XBRL)· 28 Aug 2026verified |
| Free cash flow | 439.1 m ≈ | 470.0 m ≈ | 342.4 m ≈ | 509.9 m ≈ | 588.1 m ≈ | 694.9 m ≈ | SEC (XBRL)· 28 Aug 2026derived |
| Investing cash flow | -162.3 m | -196.3 m | -409.7 m | -240.2 m | -232.2 m | -277.7 m | SEC (XBRL)· 28 Aug 2026verified |
| Financing cash flow | -462.2 m | -310.5 m | -8.4 m | -301.8 m | -345.7 m | -574.1 m | SEC (XBRL)· 28 Aug 2026verified |
| Dividends paid | 133.8 m | 139.1 m | 147.2 m | 155.9 m | 164.6 m | 170.4 m | SEC (XBRL)· 28 Aug 2026verified |
| Share repurchases | 431.5 m | 193.9 m | 25.0 m | 28.1 m | 35.1 m | 448.2 m | SEC (XBRL)· 28 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 53 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 12.6 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet22
- Valuation57
- Quality63
- Growth36
- Returns100
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 28.62 – 62.37 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/Sales28.62 – 62.37 (Mid 37.44)11 companies used · median multiple 1.0x · quartiles 0.8x – 1.7xCACI, CREX, DAIC, FUSE, GDDY, KD, LDOS, OTEX, PSN, RBBN, SAIC
- Peers: EV/EBITDAunavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 53/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 43.7% | 9 (on a fixed band) | 11% |
| EBIT margin · Quality | 25.0% | 94 (vs peers) | 9% |
| FCF margin · Quality | 27.3% | 100 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 7.0% | 28 (on a fixed band) | 18% |
| Revenue growth (YoY) · Growth | 7.1% | 51 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.2x | 22 (on a fixed band) | 7% |
| EV/Sales · Valuation | 4.9x | 25 (vs peers) | 18% |
| FCF yield · Valuation | 5.5% | 100 (on a fixed band) | 14% |
| Shareholder yield (distributions) · Returns | 4.9% | 100 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial22/100 · 1/2 factors with a value
- Growth36/100 · 2/2 factors with a value
- Quality63/100 · 3/3 factors with a value
- Returns100/100 · 1/1 factors with a value
- Valuation57/100 · 2/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
JACK HENRY & ASSOCIATES, INC. (JKHY). Latest full fiscal year: 2026; data up to 2026-06-30.
Figures computed from the financial statements: revenue 2.5 bn USD in 2026; YoY growth 7.1%; net margin 19.8%; ROE 24.0%.
The estimated value range is 28.62–62.37 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 37.44 USD, the price of 179.16 USD leaves a potential of -79.1% (value / price − 1) and a margin of safety of -378.5% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 53/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- EBIT margin: 25.0%
- FCF margin: 27.3%
- FCF yield: 5.5%
- Shareholder yield (distributions): 4.9%
What contradicts it
- Gross margin: 43.7%
- Revenue CAGR 3Y: 7.0%
- Current ratio: 1.2x
- EV/Sales: 4.9x
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA.
Versus the vertical median
Services-Computer Integrated Systems Design (SIC 7373) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| LDOSLeidos Holdings, Inc. | 16.6 bn | 12.2 | 28.2% | 8.0% | +3.1% | −29% / +26% |
| GDDYGoDaddy Inc. | 14.3 bn | 16.2 | — | 18.6% | +8.3% | −7% / +18% |
| CACICACI International Inc | 14.0 bn | 25.9 | 12.5% | 5.5% | +10.9% | +2% / +97% |
| JKHYJack Henry & Associates, Inc. | 12.6 bn | 25.7 | 24.0% | 19.8% | +7.1% | +18% / +24% |
| IONQIonQ, Inc. | 11.3 bn | — | -60.8% | -553.3% | +201.9% | −40% / +142% |
| OTEXOpen Text Corp | 6.4 bn | 10.3 | 16.2% | 12.3% | +1.5% | −21% / −34% |
| SAICScience Applications International Corporation | 6.3 bn | 17.6 | 25.7% | 5.1% | −2.9% | +75% / +28% |
| WAYWaystar Holding Corp. | 5.7 bn | 42.9 | 3.7% | 10.7% | +16.5% | −20% / unavailable |
| PSNParsons Corporation | 5.5 bn | 38.2 | 5.7% | 2.3% | −5.7% | −38% / −16% |
| KDKyndryl Holdings, Inc | 3.7 bn | 48.9 | 6.8% | 0.5% | +0.2% | −35% / −7% |
| AGYSAgilysys, Inc. | 3.5 bn | 78.5 | 13.6% | 12.9% | +15.9% | −0% / +42% |
| NTCTNetscout Systems Inc | 2.8 bn | 23.3 | 7.5% | 13.7% | +4.5% | +42% / +90% |
| AURAurora Innovation, Inc. | 2.6 bn | — | -45.7% | -13,328.6% | unavailable | −3% / +86% |
| PONYPony AI Inc. | 2.1 bn | — | -10.3% | -148.9% | +20.0% | −65% / unavailable |
| OSPNOneSpan Inc. | 872.9 m | 13.2 | 26.8% | 27.5% | +0.0% | +94% / +136% |
| TLSTelos Corporation | 378.2 m | — | -14.9% | -8.1% | +52.2% | −12% / +23% |
| SLPSimulations Plus, Inc. | 374.2 m | 46.7 | 6.2% | 9.9% | +13.1% | unavailable / unavailable |
| SMRTSmartrent, Inc. | 307.5 m | — | -7.6% | -11.0% | −12.9% | −6% / −48% |
| ASURAsure Software, Inc. | 293.6 m | — | -1.9% | — | +24.3% | +22% / +22% |
| VEEAVeea Inc. | 281.2 m | — | — | -2,491.9% | +56.6% | −55% / −98% |
| RBBNRibbon Communications Inc. | 275.9 m | 22.5 | 5.0% | 2.3% | +1.3% | −46% / −28% |
| KDKKodiak AI, Inc. | 220.7 m | — | — | -4,259.6% | −74.6% | −82% / unavailable |
| UISUnisys Corp | 171.4 m | — | — | -21.7% | −2.9% | −12% / −51% |
| AIOSAIOS Tech Inc. | 138.9 m | — | -208.9% | -4,359.1% | −98.5% | −87% / −86% |
| MRLNMerlin, Inc. | 91.5 m | — | — | — | unavailable | −92% / unavailable |
1- and 3-year price returns: for JKHY from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 111.52 Total return -37% · Per year -37% | 196.92 Total return 11% · Per year 11% | 296.31 Total return 67% · Per year 67% |
| 3 years | 113.71 Total return -33% · Per year -13% | 225.40 Total return 31% · Per year 9% | 371.60 Total return 113% · Per year 29% |
| 5 years | 115.94 Total return -30% · Per year -7% | 258.00 Total return 52% · Per year 9% | 466.02 Total return 171% · Per year 22% |
- Exit P/E± 56.35
- Net margin± 39.45
- Annual revenue growth± 31.63
- Annual dilution± 3.31
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 28 Aug 2026; since then the company filed 8-K (03 Nov 2026 · results), 8-K (29 Oct 2026 · results).
In brief
Jack Henry & Associates provides core banking technology, payment solutions and complementary services to community and regional banks and credit unions. As the sector consolidates and demand for cloud modernization grows, the company reported revenue growth of 7.1% in fiscal 2026, with fiscal 2027 guidance that depends on market conditions.12
SWOT
Strengths
- The client base of banks and credit unions is broad and loyal, and long-term contracts provide recurring revenue.
- The company holds a strong position in core banking systems and a wide portfolio of complementary products that allow cross-selling.
- Its reputation for client service and operational stability supports retention and attracting new clients.
Weaknesses
- Dependence on a limited number of third-party providers for hosting and infrastructure creates operational vulnerabilities.
- Personnel costs and amortization of capitalized software have at times grown faster than revenue, pressuring margins.
- Migrating to public cloud platforms is complex and costly, with a risk of disruption for clients.
Opportunities
- The SMB market and digital payments offer room for growth through Tap2Local and Rapid Transfers sold via banks.
- Sector consolidation can create larger clients that buy complex bundles of solutions.
- Artificial intelligence and the API-first platform could open new services and partnerships with fintechs.
Threats
- Increasingly sophisticated cyberattacks, including AI-based ones, could compromise client data and the company's reputation.
- Bank consolidation can reduce potential clients and cause existing accounts to be lost through mergers.
- Competition from fintechs and large payment providers could pressure pricing and market share.
Risks
- Cybersecurityhigh
A security incident could affect client data, reputation and financial results, and AI-assisted attacks are increasing the frequency and sophistication of threats.1
- Operational disruptionhigh
Infrastructure defects, natural disasters or third-party provider errors could interrupt processing and lead to damage claims and client losses.1
- Payments riskmedium
Integrity or fraud-prevention failures in payment processing could cause financial losses and regulatory consequences, and the company also extends short-term credit in the settlement process.1
- Dependence on third-party providersmedium
A limited number of hosting providers might not meet the company's needs on time, affecting clients.1
- Client consolidationmedium
Mergers between banks and credit unions could reduce the client base and demand for new implementations.1
Investment thesis
What would need to be true (bull case)
- Revenue and diluted earnings growth in fiscal 2026, together with guidance for fiscal 2027, could show that the recurring revenue model is working.
- A healthy sales pipeline and a record number of core wins could support growth among larger institutions.
- If expansion in faster payments and the SMB segment continues, processing revenue could accelerate over time.
What would break the thesis
- The decline in fourth-quarter operating income and rising personnel costs could limit margin expansion.
- Continued consolidation in the banking sector could shrink the pool of potential clients over the long term.
- Cybersecurity risks, amplified by AI, could generate unexpected costs or a loss of trust.
What to watch
- Delivery of fiscal 2027 revenue and margin guidance2027
- Trend in operating margin in the coming quarters after the fourth-quarter declineQ1 2027
- Pace of revenue growth from faster payments and the SMB segmentnext 10-K
- Integration of the Victor Technologies acquisition and its effect on revenue2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 28 Aug 2026; since then the company filed 8-K (03 Nov 2026 · results), 8-K (29 Oct 2026 · results).
The business
The company presents itself as a financial technology company serving over 7,200 financial institutions and corporate entities, with most clients being community and regional banks and credit unions. Its offering includes data processing systems for banks and credit unions, complementary functions and payment solutions, delivered on-premise or in a private cloud and increasingly in a public cloud through the Jack Henry Platform.1
The revenue model rests on two streams: services and support, which include cloud contracts typically of six years and licenses, implementation and maintenance, and processing, which includes payments, faster transfers and card fees. The strategy combines organic growth with disciplined acquisitions, and in fiscal 2026 the company completed the acquisition of Victor Technologies, a provider of embedded payments.1
The company reports four segments: Core, Payments, Complementary and Corporate Services (formerly Corporate and Other). Corporate Services includes hardware revenue and other products and technology infrastructure costs, while the other three segments combine core banking, payments and complementary solutions.1
Segments
Payments
The Payments segment includes processing of ATM, debit and credit card payments, online bill pay, money movement, remote deposit capture and risk management products. Revenue rose 7.2% in fiscal 2026, and faster payments were a growth driver.2
Complementary
The Complementary segment covers additional software, hosted platforms and services such as digital and mobile banking, treasury services, online account opening and anti-fraud and anti-money-laundering solutions. Revenue rose 8.3% in fiscal 2026, the fastest among the reported segments.2
Market context
The core market is community and regional banks and credit unions. The company cites about 4,300 banks and savings institutions with assets up to 55 billion dollars and about 4,400 credit unions, but the number of both is declining through consolidation while aggregate assets grow. Bank merger and acquisition transactions rose 55% in 2025 compared with 2024.1
Demand for technology remains sensitive to the investment cycle of financial institutions. The company describes strong demand for its solutions and a healthy sales pipeline, especially with larger institutions. A market risk is that faster client consolidation could shrink the customer base, and that new fintechs could compete in payment segments.1
Trends
- Bank consolidationmixed
The number of banks and credit unions has fallen for years through mergers and acquisitions, which reduces the potential client base but shifts volume to larger institutions able to buy complex solutions.1
- Artificial intelligencemixed
The company is expanding its use of AI for internal efficiency and for clients, while AI also accelerates cyber threats, which could raise both opportunities and security costs.1
- Faster payments and SMBtailwind
Growth in faster payments and in Tap2Local and Rapid Transfers for small and medium businesses could open new revenue through the company's bank clients.12
- Cloud migrationmixed
Moving to public cloud-native platforms requires large investment and could create execution risks, while also differentiating the company for clients who want flexibility.1
Competitive position
The company competes with other core banking and payment software providers serving banks and credit unions, as well as with fintechs offering services directly to customers. Its stated advantage is client service and high retention, which support long-term contracts.1
Competitive pressure is higher in digital payments and cloud solutions, where newer platforms can offer faster integration. The company responds with fintech partnerships and its API-first platform, but competition could slow client wins.1
- FiservFI
Banking and payments processor competing in the same bank and credit union segments with core and payment offerings.
- FIS (Fidelity National Information Services)FIS
Banking and payments technology provider with community bank clients, a direct competitor in core and payment solutions.
- Finastra
Financial software provider for banks and credit unions, competing in core banking and complementary solutions.
- Fintech payment and banking-as-a-service providers
Newer companies offering embedded payments and services for small businesses, competing with the company's SMB solutions.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Jack Henry & Associates (JKHY): Why Disruption Risks Appear OverstatedYahoo Finance — News · 21 Sept 2026 · EN
- Jack Henry's 2026 Outlook: Cloud-Native Platform Drives Record Core Banking WinsYahoo Finance — News · 09 Sept 2026 · EN
- Trust Stamp integrates ID verification technology with Jack Henry's Banno platformYahoo Finance — News · 08 Sept 2026 · EN
The latest news item in our archive is from 21 Sept 2026; the newest SEC filing is from 03 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Current report03 Nov 2026Results of operations · Financial statements and exhibits
- Current report29 Oct 2026Results of operations · Financial statements and exhibits
- Proxy statement02 Oct 2026
- Annual report28 Aug 2026
- Current report24 Aug 2026Departure or appointment of officers · Financial statements and exhibits
- Current report18 Aug 2026Results of operations · Financial statements and exhibits
- Current report11 Aug 2026Results of operations · Financial statements and exhibits
- Current report04 Jun 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report12 May 2026Other events · Financial statements and exhibits
- Quarterly report07 May 2026
Sources
- [1] Form 10-K, fiscal year ended 2026-06-30 · SEC / Jack Henry & Associates, Inc. · 28 Aug 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / Jack Henry & Associates, Inc. · 18 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.