Jack Henry Announces Fiscal 2026 Third Quarter Deconversion Revenue Results
Rhea-AI Summary
Jack Henry (Nasdaq: JKHY) reported $18.7 million of deconversion revenue for the fiscal third quarter ended March 31, 2026, and raised its full‑year deconversion revenue estimate to $37 million for fiscal 2026.
The company notes deconversion revenue arises when a client is acquired and its contract terminates, is driven by factors outside Jack Henry's control, and is excluded from the company's non‑GAAP revenue metrics.
Positive
- Q3 deconversion revenue of $18.7 million
- Full‑year deconversion guidance increased to $37 million
Negative
- Deconversion revenue excluded from non‑GAAP revenue metrics
- Revenue driven by third‑party client acquisitions, creating timing volatility
News Market Reaction – JKHY
In the Apr 29 session, JKHY gained 0.62%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 22 | Earnings call logistics | Neutral | -0.6% | Set date and access details for upcoming fiscal 2026 Q3 earnings call. |
| Apr 20 | ESG report release | Positive | -0.1% | Published 2026 Sustainability Report outlining ESG priorities and disclosures. |
| Mar 24 | Customer wins | Positive | -2.7% | FM BANK and Quoin Financial chose Jack Henry core and digital platforms. |
| Mar 19 | Product award | Positive | -0.4% | Tap2Local named "Small Business Payments Solution of the Year" by FinTech awards. |
| Mar 06 | Partnership expansion | Positive | +2.9% | Financial Crimes Defender added to ICBA Preferred Service Provider program. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent operational and recognition-oriented announcements have often been followed by negative short-term price reactions, with only one of the clearly positive prior items showing a supportive move.
Over the last two months, JKHY has highlighted multiple business milestones, including new bank wins on Mar 24, an industry award for Tap2Local on Mar 19, and an ICBA program expansion on Mar 06. Despite their generally positive tone, three of these four updates saw negative next-day reactions. The latest deconversion revenue and guidance update on Apr 28 fits into this cadence of frequent operational disclosures layered on top of solid financial results reported in the Feb 06 Form 10-Q.
Key Terms
non-gaap revenue financial
form 8-k regulatory
form 10-k regulatory
form 10-q regulatory
forward-looking statements regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
The majority of deconversion revenue is generated when one of Jack Henry's clients agrees to be acquired by another financial institution, resulting in the termination of the client's contract with Jack Henry. In these circumstances, Jack Henry's recognition of deconversion revenue is driven by factors outside Jack Henry's control, and this revenue does not represent the true operations of Jack Henry's ongoing business of providing services to clients. As a result, Jack Henry excludes deconversion revenue from non-GAAP revenue reported in its quarterly and annual earnings releases.
Statements made in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Because forward-looking statements relate to the future, they are subject to inherent risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, those discussed in Jack Henry's Securities and Exchange Commission filings, including Jack Henry's most recent reports on Form 10-K and Form 10-Q, particularly under the heading Risk Factors. Any forward-looking statement made in this current report speaks only as of the date of the current report, and Jack Henry's expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether because of new information, future events or otherwise.
About Jack Henry & Associates, Inc.®
Jack HenryTM (Nasdaq: JKHY) is a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve. We are an S&P 500 company that prioritizes openness, collaboration, and user centricity – offering banks and credit unions a vibrant ecosystem of internally developed modern capabilities as well as the ability to integrate with leading fintechs. For nearly 50 years, Jack Henry has provided technology solutions to enable clients to innovate faster, strategically differentiate, and successfully compete while serving the evolving needs of their accountholders. We empower approximately 7,400 clients with people-inspired innovation, personal service, and insight-driven solutions that help reduce the barriers to financial health. Additional information is available at www.jackhenry.com.
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SOURCE Jack Henry & Associates, Inc.