10-Q · May 7, 2026
Jack Henry & Associates reported a strong Q3 fiscal 2026, with revenues of $636.2 million, an 8.7% increase year-over-year. EPS reached $1.71, surpassing consensus estimates by 20.4%. The company raised its full-year…
Earnings analysis · 10-K
JKHY earnings analysis
Filed August 28, 2026 · Our reading of the company's report
The latest report
Jack Henry delivered accelerating fiscal 2026 growth, with revenue up 7.1% to $2.544 billion, diluted EPS up 11.9% to $6.98, and operating margin improving to approximately 25.0% on an annual basis. Payments and…
Read full summary
Jack Henry delivered accelerating fiscal 2026 growth, with revenue up 7.1% to $2.544 billion, diluted EPS up 11.9% to $6.98, and operating margin improving to approximately 25.0% on an annual basis. Payments and Complementary led growth, while the public-cloud, API-first Jack Henry Platform, AI, embedded payments, and SMB initiatives provide a credible product roadmap and cross-sell opportunity across more than 7,200 clients. Capital returns were substantial, although cash declined to $12.056 million after $448.173 million of repurchases, $170.405 million of dividends, $184.243 million of software development, and the $42.390 million Victor acquisition; the principal forward risks are cyber escalation, third-party cloud dependence, and industry consolidation.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $6.98
What stood out
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Broad installed base supports cross-sell strategy
Jack Henry’s strategy centers on organic growth augmented by disciplined acquisitions, cross-selling complementary and payment products, public-cloud modernization, AI, open integrations, and SMB payment capabilities. The Company serves over 7,200 clients, including over 900 core bank clients, over 700 credit unions, and approximately 5,600 non-core clients.
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Three-year growth remained durable
Fiscal 2026 revenue increased 7.1% to $2.544 billion from $2.375 billion in fiscal 2025 and $2.216 billion in fiscal 2024. Net income increased to $502.776 million from $455.748 million and $381.816 million, while diluted EPS rose to $6.98 from $6.24 and $5.23.
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Operating leverage improved annually
Operating income increased to $635.033 million in fiscal 2026 from $568.715 million in fiscal 2025 and $489.391 million in fiscal 2024; the calculated operating margin was approximately 25.0% versus 23.9% and 22.1%, respectively. Cost of revenue grew 5.4%, slower than the 7.1% revenue increase.
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Payments and digital drive mix shift
Payments and Complementary were the primary growth engines, with revenue increasing 7.2% and 8.3%, respectively. Payments benefited from card, faster-payments, and payment-processing growth, while Complementary benefited from cloud hosting and digital revenue.
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Modernization roadmap is well defined
The Jack Henry Platform is being developed as a public cloud-native, API-first platform incorporating core services such as deposit servicing, a data hub, general ledger, and entitlements, while connecting existing cores to capabilities including stablecoins, Rapid Transfers, and Tap2Local.
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Strong cash generation funded allocation
Operating cash flow rose 18.8% to $761.960 million from $641.504 million, supporting $170.405 million of dividends, $448.173 million of share repurchases, $67.103 million of capital expenditures, $184.243 million of software development, and the $42.390 million Victor acquisition.
What to watch
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AI is raising cybersecurity exposure
The filing newly emphasizes that frontier AI is increasing the scale, speed, and complexity of cyberattacks, including automated phishing, deepfakes, new malware, and zero-day exploitation. Jack Henry states it regularly experiences attacks and malicious activity and that a material cybersecurity incident could affect strategy, results, or financial condition, although as of filing it had not identified a known threat that had materially done so.
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Cloud migration increases concentration risk
The Company is migrating more computing, storage, and processing into public-cloud infrastructure and private-cloud colocation, increasing reliance on a limited number of third-party providers. The filing states that a provider disruption could cause degraded performance, data loss, prolonged outages, damage claims, client losses, and increased regulatory scrutiny; fiscal 2026 capitalized software development was $184.243 million, underscoring the scale of the modernization investment.
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Financial-institution consolidation continues
Client and industry concentration remains a structural risk as the addressable market consolidates: the number of commercial banks and savings institutions declined 13% from the end of 2020 through 2025, while credit unions declined 16%; bank acquisition or merger transactions increased 55% in calendar 2025 versus 2024. Jack Henry serves approximately 4,300 banks and 4,400 credit unions in these markets, so further consolidation could reduce the client base and contract opportunities.
Management's outlook
The 10-K provides qualitative confidence in fiscal 2027, citing a healthy sales pipeline, strong financial-institution technology spending, and expected continued revenue growth with margin expansion, but does not provide numeric annual guidance. Numeric FY2027 guidance was provided in the August 2026 earnings release rather than this filing.
Earlier filings 4
10-Q · May 12, 2025
Jack Henry reported Q3 revenue of $585,087,000 (up $46,525,000 vs. $538,562,000 a year ago and up $11,239,000 vs. the prior quarter) and GAAP diluted EPS of $1.52 (up $0.33 vs. $1.19 a year ago and up $0.18 vs. prior…
10-Q · February 7, 2025
Jack Henry reported Q2 revenue of $573,848,000 (up $28,147,000 vs. $545,701,000 in the prior year) and GAAP diluted EPS of $1.34 (up from $1.26 a year ago; beat the $1.32 consensus). Gross margin was 42.0% and operating…
10-Q · November 8, 2024
Jack Henry's fiscal Q1 results show an increase in revenue and EPS compared to both the prior quarter and the previous year. Revenue reached $600,982,000, a 5.2% increase year-over-year, while EPS improved from $1.39 to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.