Jack Henry & Associates, Inc. Reports Fourth Quarter and Full Year Fiscal 2026 Results

Rhea-AI Summary

Jack Henry (Nasdaq: JKHY) reported fiscal Q4 2026 GAAP revenue of $644.0 million, up 4.7% year over year, while GAAP operating income fell 12.2% to $136.8 million and GAAP EPS declined 10.2% to $1.57. Non-GAAP adjusted revenue grew 6.6% and non-GAAP adjusted operating income decreased 3.1%.

For fiscal 2026, GAAP revenue rose 7.1% to $2.54 billion, GAAP operating income increased 11.7% to $635.0 million, and GAAP EPS grew 11.9% to $6.98. Non-GAAP adjusted revenue increased 7.3% and non-GAAP adjusted operating income rose 11.6%. The company repurchased $448 million of stock in the year and reported ROIC of 23.2%.

Cash and cash equivalents declined to $12.1 million from $102.0 million, while debt on credit facilities increased to $40 million. For fiscal 2027, Jack Henry guided GAAP revenue to $2.684–$2.709 billion, GAAP operating margin to 24.5–24.7%, and EPS to $7.33–$7.38.

Positive

• Fiscal 2026 GAAP revenue up 7.1% to $2.54 billion
• Fiscal 2026 GAAP EPS up 11.9% to $6.98
• Fiscal 2026 GAAP operating income up 11.7% to $635.0 million
• Non-GAAP adjusted revenue up 7.3% to $2.50 billion in 2026
• Non-GAAP adjusted operating margin improved to 24.1% in 2026
• Share repurchases of $448 million in fiscal 2026
• Fiscal 2027 GAAP EPS guidance of $7.33–$7.38
• Return on invested capital reported at 23.2% for fiscal 2026

Negative

• Q4 2026 GAAP operating income down 12.2% to $136.8 million
• Q4 2026 GAAP EPS down 10.2% to $1.57
• Q4 2026 operating margin declined to 21.2% from 25.3%
• Q4 2026 GAAP net income down 12.8% to $111.2 million
• Cash balance fell to $12.1 million from $102.0 million year over year
• Debt on credit facilities increased to $40 million from zero

News Explained

The fiscal 2027 guidance is explicitly based on making no acquisitions or dispositions during the year, so it is a baseline that excludes those potential transactions.

Market Reaction – JKHY

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Following this news, JKHY has gained 1.89%, reflecting a mild positive market reaction. Our momentum scanner has triggered 2 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $156.01. Trading volume is above average at 1.8x the average, suggesting increased trading activity.

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Market Context

Recent platform history included a -0.86% 24-hour reaction for news_id 1267628, while current short ...

Analysis

Recent platform history included a -0.86% 24-hour reaction for news_id 1267628, while current short positioning was classified as low. The record adds a market-history comparison; quarterly margin pressure remains a risk to monitor.

Key Figures

Q4 GAAP revenue growth: 4.7% Q4 GAAP operating income growth: -12.2% Q4 GAAP EPS: $1.57 per diluted share +5 more

8 metrics

Q4 GAAP revenue growth 4.7% Fiscal three months ended June 30, 2026, year over year

Q4 GAAP operating income growth -12.2% Fiscal three months ended June 30, 2026, year over year

Q4 GAAP EPS $1.57 per diluted share Compared with $1.75 in the prior fiscal year quarter; contraction of 10.2%

Full-year GAAP revenue growth 7.1% Fiscal year ended June 30, 2026, year over year

Full-year GAAP EPS $6.98 per diluted share Compared with $6.24 in the prior fiscal year; growth of 11.9%

Fiscal-year stock repurchases $448 million at an average price of $152 per share Fiscal year ended June 30, 2026

FY2027 GAAP revenue guidance $2,684 million to $2,709 million Full fiscal year 2027 guidance

FY2027 GAAP EPS guidance $7.33 to $7.38 Full fiscal year 2027 guidance

Historical Context

5 past events · Latest: Aug 11 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Aug 11	Deconversion revenue update	Neutral	-0.9%	Reported quarterly and full-year deconversion revenue excluded from non-GAAP revenue
Aug 07	Fintech partnership	Positive	-0.6%	PrintMail joined Jack Henry's Fintech Integration Network for platform connectivity
Aug 05	Earnings call scheduling	Neutral	-1.5%	Company scheduled fiscal fourth-quarter and full-year earnings webcast
Jul 30	Customer contract award	Positive	-4.3%	MCBANK selected Jack Henry's core processing and banking technology solutions
Jul 28	Workplace recognition	Positive	+2.9%	U.S. News named Jack Henry among its Best Companies to Work For

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent company news mostly accompanied negative 24-hour reactions, including positive partnership announcements.

Key Terms

gaap, non-gaap, roic

3 terms

gaap financial

"GAAP revenue increased 4.7% and GAAP operating income decreased 12.2%"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial

"Non-GAAP adjusted revenue increased 6.6%"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

roic financial

"culminating in an outstanding ROIC of 23.2%"

Return on invested capital (ROIC) measures how well a company turns the money it uses to run and grow the business into profit, expressed as a percentage. Think of it like how much fruit a tree yields for each seed and watering dollar invested: higher ROIC means management is extracting more value from each dollar put into the company. Investors use it to compare how efficiently different companies deploy capital and whether returns justify the risk of holding the stock.

View in glossary

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Fourth quarter summary:

• GAAP revenue increased 4.7% and GAAP operating income decreased 12.2% for the fiscal three months ended June 30, 2026, compared to the prior fiscal year quarter.
• Non-GAAP adjusted revenue increased 6.6% and non-GAAP adjusted operating income decreased 3.1% for the fiscal three months ended June 30, 2026, compared to the prior fiscal year quarter.¹
• GAAP EPS was $1.57 per diluted share for the fiscal three months ended June 30, 2026, compared to $1.75 per diluted share in the prior fiscal year quarter representing contraction of 10.2%.
• Stock repurchases for the fiscal three months ended June 30, 2026, were $164 million at an average price of $140 per share.

Fiscal year summary:

• GAAP revenue increased 7.1% and GAAP operating income increased 11.7% for the fiscal year ended June 30, 2026, compared to the prior fiscal year.
• Non-GAAP adjusted revenue increased 7.3% and non-GAAP adjusted operating income increased 11.6% for the fiscal year ended June 30, 2026, compared to the prior fiscal year.¹
• GAAP EPS was $6.98 per diluted share for the fiscal year ended June 30, 2026, compared to $6.24 per diluted share in the prior fiscal year representing growth of 11.9%.
• Cash and cash equivalents were $12.1 million at June 30, 2026, and $102.0 million at June 30, 2025.
• Debt outstanding for credit facilities was $40 million at June 30, 2026, and $0 at June 30, 2025.
• Stock repurchases for fiscal year ended June 30, 2026, were $448 million at an average price of $152 per share.

Full year fiscal 2027 guidance (Dollars in millions, other than per share amounts):³

	Current
GAAP	Low	High
Revenue	$2,684	$2,709
Operating margin4	24.5 %	24.7 %
EPS	$7.33	$7.38
Non-GAAP5
Adjusted revenue	$2,659	$2,684
Adjusted operating margin	24.1 %	24.3 %

MONETT, Mo., Aug. 18, 2026 /PRNewswire/ -- Jack Henry & Associates, Inc. (Nasdaq: JKHY), a leading financial technology provider, today announced results for fiscal fourth quarter and fiscal full year ended June 30, 2026.

1 See tables below on page 4 reconciling non-GAAP financial measures to GAAP.

2See table below on page 14 reconciling net income to non-GAAP EBITDA.

3 The full fiscal year guidance assumes no acquisitions or dispositions will be made during fiscal year 2027.

4Operating margin is calculated by dividing operating income by revenue.

5See tables below on page 9 reconciling fiscal year 2027 GAAP to non-GAAP guidance.

According to Greg Adelson, President and CEO, "We are extremely pleased to report record sales and financial results for fiscal 2026. We delivered a record 58 competitive core wins for the year, including 14 institutions with more than $1 billion in assets, and both fourth-quarter and full-year non-GAAP revenue reached new highs. Technology spending remains strong, which is reflected in our robust sales pipeline as we continue to provide innovative solutions and expand the use of artificial intelligence to help banks and credit unions win in the markets they serve. As we enter fiscal 2027, we are well positioned to continue driving consistent revenue growth, margin expansion, and long-term value through our unwavering focus on culture, service, innovation, strategy, and execution."

Operating Results

Revenue, operating expenses, operating income, and net income for the fiscal three months and fiscal year ended June 30, 2026, compared to the fiscal three months and fiscal year ended June 30, 2025, were as follows:

Revenue
(Unaudited, dollars in thousands)	Three Months Ended June 30,				% Change		Year Ended June 30,				% Change
	2026		2025				2026		2025
Revenue
Services and Support	$   360,195		$     351,239		2.5 %		$ 1,448,003		$    1,361,737		6.3 %
Percentage of Total Revenue	55.9 %		57.1 %				56.9 %		57.3 %
Processing	283,828		264,133		7.5 %		1,096,336		1,013,551		8.2 %
Percentage of Total Revenue	44.1 %		42.9 %				43.1 %		42.7 %
REVENUE	$   644,023		$     615,372		4.7 %		$ 2,544,339		$    2,375,288		7.1 %

• Services and support revenue increased for the fiscal three months ended June 30, 2026, compared to the fiscal three months ended June 30, 2025, primarily driven by growth in data processing and hosting revenue within private and public cloud revenue of 7.4% and higher license and hardware revenue by 27.3% and increased education, royalty, and other revenues by 38.6% partially offset by a decrease in deconversion revenue of $11,168. Processing revenue increased for the fiscal three months ended June 30, 2026, compared to the fiscal three months ended June 30, 2025, mainly driven by growth in card revenue of 5.4% from monthly service and risk management fees, improvement in Jack Henry digital and transaction revenue of 8.6% from a higher number of active users on our digital platform,  and a rise in faster payments revenue of 47.0%.

• Services and support revenue increased for the fiscal year ended June 30, 2026, compared to the fiscal year ended June 30, 2025, primarily driven by growth in data processing and hosting revenue within private and public cloud revenue of 8.5%, higher consulting, work orders and release fees revenue by 13.0%, a rise in implementation revenue by 14.1%, and increased license and hardware revenue by 19.5% partially offset by the decrease in software usage revenue (mainly due to a contract change in the prior fiscal year) by 26.2%. Processing revenue increased for the fiscal year ended June 30, 2026, compared to the fiscal year ended June 30, 2025, mainly driven by growth in card revenue of 6.0% from monthly service and risk management fees, improvement in Jack Henry digital and transaction revenue of 11.6% from a higher number of active users on our digital platform, and a rise in faster payments revenue of 49.5%.

• For the fiscal three months ended June 30, 2026, compared to the fiscal three months ended June 30, 2025, core segment revenue increased 1.9%, payments segment revenue increased 4.9%, complementary segment revenue increased 4.7%, and corporate services segment revenue increased 30.4%. For the fiscal three months ended June 30, 2026, compared to the fiscal three months ended June 30, 2025, core segment non-GAAP adjusted revenue increased 6.0%, payments segment non-GAAP adjusted revenue increased 6.1%, complementary segment non-GAAP adjusted revenue increased 5.6%, and corporate services non-GAAP adjusted segment revenue increased 31.3%. Total non-GAAP adjusted revenue increased 6.6% for the same comparative periods (see revenue lines of segment break-out tables on pages 5 and 6 below for a reconciliation of GAAP segment revenue to non-GAAP adjusted segment revenue).

• For the fiscal year ended June 30, 2026, compared to the fiscal year ended June 30, 2025, core segment revenue increased 4.8%, payments segment revenue increased 7.2%, complementary segment revenue increased 8.3%, and corporate services segment revenue increased 18.3%. For the fiscal year ended June 30, 2026, compared to the fiscal year ended June 30, 2025, core segment non-GAAP adjusted revenue increased 7.1%, payments segment non-GAAP adjusted revenue increased 6.4%, complementary segment non-GAAP adjusted revenue increased 7.7%, and corporate services non-GAAP adjusted segment revenue increased 18.3%. Total non-GAAP adjusted revenue increased 7.3% for the same comparative periods (see revenue lines of segment break-out tables on pages 7 and 8 below for a reconciliation of GAAP segment revenue to non-GAAP adjusted segment revenue).

Operating Expenses and Operating Income
(Unaudited, dollars in thousands)	Three Months Ended June 30,				% Change		Year Ended June 30,				% Change
	2026		2025				2026		2025
Cost of Revenue	$   370,175		$   343,879		7.6 %		$ 1,433,651		$  1,360,747		5.4 %
Percentage of Total Revenue6	57.5 %		55.9 %				56.3 %		57.3 %
Research and Development	49,830		42,580		17.0 %		176,445		162,771		8.4 %
Percentage of Total Revenue6	7.7 %		6.9 %				6.9 %		6.9 %
Selling, General, and Administrative	87,245		73,216		19.2 %		299,210		283,055		5.7 %
Percentage of Total Revenue6	13.5 %		11.9 %				11.8 %		11.9 %
OPERATING EXPENSES	507,250		459,675		10.3 %		1,909,306		1,806,573		5.7 %
OPERATING INCOME	$   136,773		$    155,697		(12.2) %		$    635,033		$    568,715		11.7 %
Operating Margin6	21.2 %		25.3 %				25.0 %		23.9 %

• Cost of revenue increased for the fiscal three months and fiscal year ended June 30, 2026, compared to the fiscal three months and fiscal year ended June 30, 2025, primarily due to higher personnel costs, including compensation and benefit costs, partially related to trailing twelve month headcount growth, higher direct costs generally consistent with increases in related lines of revenue, as well as higher amortization of capitalized software and increased internal licenses and fees.

• Research and development expense increased for the fiscal three months and fiscal year ended June 30, 2026, compared to the fiscal three months and fiscal year ended June 30, 2025, primarily due to higher personnel costs (net of capitalization), including compensation and benefit costs, partially related to trailing twelve month headcount growth.

• Selling, general, and administrative expense increased for the fiscal three months and fiscal year ended June 30, 2026, compared to the fiscal three months and fiscal year ended June 30, 2025, mainly due to higher personnel costs, including increased medical costs from second-half normalization trends and higher compensation tied to trailing twelve month headcount growth.

Net Income

(Unaudited, in thousands, except per share data)	Three Months Ended June 30,				% Change		Year Ended June 30,				% Change
	2026		2025				2026		2025
Income Before Income Taxes	$      139,738		$      159,949		(12.6) %		$     652,790		$     586,036		11.4 %
Provision for Income Taxes	28,510		32,345		(11.9) %		150,014		130,288		15.1 %
NET INCOME	$       111,228		$      127,604		(12.8) %		$     502,776		$     455,748		10.3 %
Diluted earnings per share	$             1.57		$            1.75		(10.2) %		$           6.98		$           6.24		11.9 %

• Effective tax rates for the fiscal three months and fiscal year ended June 30, 2026, were 20.4% and 23.0% respectively, and for the fiscal three months and fiscal year ended June 30, 2025 were 20.2% and 22.2%, respectively.

According to Mimi Carsley, CFO and Treasurer, "Our full year performance delivered record revenues, substantial margin expansion, and robust free cash flow, yielding value—culminating in an outstanding ROIC of 23.2% that reflects the underlying strength of our business model. Looking ahead to full-year 2027, our non-GAAP revenue growth should remain consistent, but margin comparisons will be impacted by tough comparisons from the first half of last year. Overall, we expect another strong performance in fiscal 2027."

6Operating margin is calculated by dividing operating income by revenue. Operating margin plus operating expense components as a percentage of total revenue may not equal 100% due to rounding.

Impact of Non-GAAP Adjustments

The tables below show our revenue, operating income, and net income for the fiscal three months and fiscal year ended June 30, 2026, compared to the fiscal three months and fiscal year ended June 30, 2025, excluding the impacts of deconversions in the fiscal quarter and fiscal year ended June 30, 2026, and June 30, 2025, the impact in the current fiscal quarter and fiscal year of an acquisition made during the current fiscal year, the gain on assets, net, in the current fiscal year, and the impact of a contract change in the prior fiscal quarter and fiscal year.

(Unaudited, dollars in thousands)	Three Months Ended June 30,				% Change		Year Ended June 30,				% Change
	2026		2025				2026		2025
GAAP Revenue*	$    644,023		$    615,372		4.7 %		$               2,544,339		$              2,375,288		7.1 %
Adjustments:
Deconversion revenue	(9,327)		(20,495)				(42,830)		(33,905)
Revenue related to a contract change	—		(1,202)				—		(15,874)
Revenue from the acquisition	(1,598)		—				(5,193)		—
NON-GAAP ADJUSTED REVENUE*	$    633,098		$    593,675		6.6 %		$               2,496,316		$               2,325,509		7.3 %
GAAP Operating Income	$     136,773		$    155,697		(12.2) %		$ 635,033		$  568,715		11.7 %
Adjustments:
Operating income from deconversions	(4,616)		(17,938)				(29,953)		(27,663)
Operating income related to a contract change	—		(180)				—		(2,358)
Gain on assets, net	—		—				(6,829)		—
Operating loss from the acquisition	1,141		—				2,959		—
NON-GAAP ADJUSTED OPERATING INCOME	$     133,298		$     137,579		(3.1) %		$   601,210		$ 538,694		11.6 %
Non-GAAP Adjusted Operating Margin**	21.1 %		23.2 %				24.1 %		23.2 %
GAAP Net Income	$      111,228		$     127,604		(12.8) %		$   502,776		$ 455,748		10.3 %
Adjustments:
Net income from deconversions	(4,616)		(17,938)				(29,953)		(27,663)
Net income related to a contract change	—		(180)				—		(2,358)
Gain on assets, net	—		—				(6,829)		—
Net loss from the acquisition	1,141		—				2,959		—
Tax impact of adjustments***	834		4,348				8,118		7,205
NON-GAAP ADJUSTED NET INCOME	$     108,587		$     113,834		(4.6) %		$   477,071		$  432,932		10.2 %

*GAAP revenue is comprised of services and support and processing revenues (see page 2). Services and support revenue less deconversion revenue for the fiscal three months ended June 30, 2026, and 2025, which was $9,327 for the current fiscal year quarter and $20,495 for the prior fiscal year quarter, and reducing the fiscal three months ended June 30, 2025, amount also for revenue related to a contractual change of $1,202, results in non-GAAP adjusted services and support revenue growth of 6.5% quarter over quarter. Processing revenue less revenue from the acquisition for the fiscal three months ended June 30, 2026, of $1,598, results in non-GAAP adjusted processing revenue growth of 6.9% quarter over quarter.

Services and support revenue less deconversion revenue for the fiscal year ended June 30, 2026, and 2025 which was $42,830 for the current fiscal year and $33,905 for the prior fiscal year, and reducing the fiscal year ended June 30, 2025, amount also for revenue related to a contractual change of $15,874, results in non-GAAP adjusted services and support revenue growth of 7.1% year over year. Processing revenue less revenue from the acquisition for the fiscal year ended June 30, 2026, of $5,193, results in non-GAAP adjusted processing revenue growth of 7.7% year over year.

**Non-GAAP adjusted operating margin is calculated by dividing non-GAAP adjusted operating income by non-GAAP adjusted revenue.

***The tax impact of adjustments is calculated using a tax rate of 24% for the fiscal three months and fiscal year ended June 30, 2026, and 2025. The tax rate for non-GAAP adjustment items takes a broad look at the Company's recurring tax adjustments and applies them to non-GAAP revenue that does not have its own specific tax impacts.

The tables below show the segment break-out of revenue and cost of revenue for each period presented, as adjusted for the items above, and include a reconciliation to non-GAAP adjusted operating income presented above.

	Three Months Ended June 30, 2026
(Unaudited, dollars in thousands)	Core		Payments		Complementary		Corporate Services		Total
GAAP REVENUE	$   191,611		$   240,419		$          188,800		$    23,193		$           644,023
Non-GAAP adjustments*	(2,830)		(4,454)		(3,588)		(53)		(10,925)
NON-GAAP ADJUSTED REVENUE	188,781		235,965		185,212		23,140		633,098
GAAP COST OF REVENUE	75,756		121,233		73,009		100,177		370,175
Non-GAAP adjustments*	(1,450)		(2,295)		(1,040)		(129)		(4,914)
NON-GAAP ADJUSTED COST OF REVENUE	74,306		118,938		71,969		100,048		365,261
GAAP SEGMENT INCOME	$   115,855		$   119,186		$           115,791		$   (76,984)
Segment Income Margin**	60.5 %		49.6 %		61.3 %		(331.9) %
NON-GAAP ADJUSTED SEGMENT INCOME	$   114,475		$   117,027		$           113,243		$   (76,908)
Non-GAAP Adjusted Segment Income Margin**	60.6 %		49.6 %		61.1 %		(332.4) %
Research and Development									49,830
Selling, General, and Administrative									87,245
Non-GAAP adjustments unassigned to a segment***									(2,536)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES									499,800
NON-GAAP ADJUSTED OPERATING INCOME									$ 133,298

*Revenue non-GAAP adjustments for the Payments segment were ($1,598) of acquisition revenue and ($2,856) of deconversion revenue. Revenue non-GAAP adjustments for the remainder of the segments were deconversion revenue. Cost of revenue non-GAAP adjustments for the Payments segment were ($1,991) of acquisition costs and ($304) of deconversion costs. Cost of revenue non-GAAP adjustments for the Corporate Services segment were ($118) of acquisition costs and ($11) of deconversion costs. Cost of revenue non-GAAP adjustments for the remainder of the segments were deconversion costs.

**Segment income margin is calculated by dividing segment income by revenue for each segment. Non-GAAP adjusted segment income margin is calculated by dividing non-GAAP adjusted segment income by non-GAAP adjusted revenue for each segment.

***Non-GAAP adjustments unassigned to a segment were deconversion costs of $1,906, research and development costs related to the acquisition of $590, and selling, general, and administrative costs related to the acquisition of $40.

 

	Three Months Ended June 30, 2025
(Unaudited, dollars in thousands)	Core		Payments		Complementary		Corporate Services		Total
GAAP REVENUE	$ 187,976		$  229,292		$           180,317		$    17,787		$   615,372
Non-GAAP adjustments*	(9,863)		(6,818)		(4,852)		(164)		(21,697)
NON-GAAP ADJUSTED REVENUE	178,113		222,474		175,465		17,623		593,675
GAAP COST OF REVENUE	69,389		116,128		68,894		89,468		343,879
Non-GAAP adjustments*	(1,753)		(109)		(440)		(9)		(2,311)
NON-GAAP ADJUSTED COST OF REVENUE	67,636		116,019		68,454		89,459		341,568
GAAP SEGMENT INCOME	$  118,587		$   113,164		$           111,423		$   (71,681)
Segment Income Margin**	63.1 %		49.4 %		61.8 %		(403.0) %
NON-GAAP ADJUSTED SEGMENT INCOME	$  110,477		$  106,455		$           107,011		$   (71,836)
Non-GAAP Adjusted Segment Income Margin	62.0 %		47.9 %		61.0 %		(407.6) %
Research and Development									42,580
Selling, General, and Administrative									73,216
Non-GAAP adjustments unassigned to a segment***									(1,268)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES									456,096
NON-GAAP ADJUSTED OPERATING INCOME									$   137,579

*Revenue non-GAAP adjustments for the Core segment were ($1,202) of revenue related to the contractual change and ($8,661) of deconversion revenue. Revenue non-GAAP adjustments for the remainder of the segments were deconversion revenue. Cost of revenue non-GAAP adjustments for the Core segment were cost of revenue related to a contractual change of ($1,022) and ($731) of deconversion costs. Cost of revenue non-GAAP adjustments for the remainder of the segments were deconversion costs.

**Segment income margin is calculated by dividing segment income by revenue for each segment. Non-GAAP adjusted segment income margin is calculated by dividing non-GAAP adjusted segment income by non-GAAP adjusted revenue for each segment.

***Non-GAAP adjustments unassigned to a segment were deconversion costs.

 

	Year Ended June 30, 2026
(Unaudited, dollars in thousands)	Core		Payments		Complementary		Corporate Services		Total
GAAP REVENUE	$ 768,452		$ 936,006		$         752,214		$    87,667		$             2,544,339
Non-GAAP adjustments*	(16,605)		(18,853)		(12,219)		(346)		(48,023)
NON-GAAP ADJUSTED REVENUE	751,847		917,153		739,995		87,321		2,496,316
GAAP COST OF REVENUE	304,886		479,539		286,726		362,500		1,433,651
Non-GAAP adjustments*	(4,566)		(6,571)		(2,119)		(389)		(13,645)
NON-GAAP ADJUSTED COST OF REVENUE	300,320		472,968		284,607		362,111		1,420,006
GAAP SEGMENT INCOME	$ 463,566		$ 456,467		$        465,488		$ (274,833)
Segment Income Margin**	60.3 %		48.8 %		61.9 %		(313.5) %
NON-GAAP ADJUSTED SEGMENT INCOME	$ 451,527		$ 444,185		$         455,388		$ (274,790)
Non-GAAP Adjusted Segment Income Margin	60.1 %		48.4 %		61.5 %		(314.7) %
Research and Development									176,445
Selling, General, and Administrative									299,210
Non-GAAP adjustments unassigned to a segment***									(555)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES									1,895,106
NON-GAAP ADJUSTED OPERATING INCOME									$   601,210

*Revenue non-GAAP adjustments for the Payments segment were ($5,193) of acquisition revenue and ($13,660) of deconversion revenue. Revenue non-GAAP adjustments for the remainder of the segments were deconversion revenue. Cost of revenue non-GAAP adjustments for the Payments segment were ($5,854) of acquisition costs and ($717) of deconversion costs. Cost of revenue non-GAAP adjustments for the Corporate Services segment were ($371) of acquisition costs and ($18) of deconversion costs. Cost of revenue non-GAAP adjustments for the remainder of the segments were deconversion costs.

**Segment income margin is calculated by dividing segment income by revenue for each segment. Non-GAAP adjusted segment income margin is calculated by dividing non-GAAP adjusted segment income by non-GAAP adjusted revenue for each segment.

***Non-GAAP adjustments unassigned to a segment were a gain on assets, net, of $6,829 less deconversion costs of $5,457, research and development costs related to the acquisition of $1,803, and selling, general, and administrative costs related to the acquisition of $124.

 

	Year Ended June 30, 2025
(Unaudited, dollars in thousands)	Core		Payments		Complementary		Corporate Services		Total
GAAP REVENUE	$ 732,924		$ 873,498		$          694,771		$    74,095		$            2,375,288
Non-GAAP adjustments*	(30,639)		(11,159)		(7,709)		(272)		(49,779)
NON-GAAP ADJUSTED REVENUE	702,285		862,339		687,062		73,823		2,325,509
GAAP COST OF REVENUE	295,239		460,151		269,657		335,700		1,360,747
Non-GAAP adjustments*	(15,612)		(288)		(1,119)		(14)		(17,033)
NON-GAAP ADJUSTED COST OF REVENUE	279,627		459,863		268,538		335,686		1,343,714
GAAP SEGMENT INCOME	$ 437,685		$ 413,347		$          425,114		$ (261,605)
Segment Income Margin**	59.7 %		47.3 %		61.2 %		(353.1) %
NON-GAAP ADJUSTED SEGMENT INCOME	$ 422,658		$ 402,476		$          418,524		$ (261,863)
Non-GAAP Adjusted Segment Income Margin	60.2 %		46.7 %		60.9 %		(354.7) %
Research and Development									162,771
Selling, General, and Administrative									283,055
Non-GAAP adjustments unassigned to a segment***									(2,725)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES									1,786,815
NON-GAAP ADJUSTED OPERATING INCOME									$ 538,694

*Revenue non-GAAP adjustments for the Core segment were ($15,874) of revenue related to the contractual change and ($14,765) of deconversion revenue. Revenue non-GAAP adjustments for the remainder of the segments were deconversion revenue. Cost of revenue non-GAAP adjustments for the Core segment were cost of revenue related to a contractual change of ($13,516) and ($2,096) of deconversion costs. Cost of revenue non-GAAP adjustments for the remainder of the segments were deconversion costs.

**Segment income margin is calculated by dividing segment income by revenue for each segment. Non-GAAP adjusted segment income margin is calculated by dividing non-GAAP adjusted segment income by non-GAAP adjusted revenue for each segment.

***Non-GAAP adjustments unassigned to a segment were deconversion costs.

The table below shows our GAAP to non-GAAP guidance for the fiscal year ending June 30, 2027. Fiscal year 2027 non-GAAP guidance excludes the impacts of deconversion revenue and related operating expenses, acquisition revenues and related operating expenses, the revenues and operating expenses related to a contractual change, and the gain on assets, net, and assumes no additional acquisitions or dispositions will be made during the fiscal year.

	GAAP to Non-GAAP GUIDANCE (Dollars in millions, except per share data)		Annual FY'27				Adjusted for FY'27 Comparison		Reported		Change (Acquisition)
			Low		High		FY26		FY26		FY26
	GAAP REVENUE		$ 2,684		$ 2,709		$      2,544		$   2,544		$             —
	Growth		5.5 %		6.5 %
	Deconversions*		23		23		43		43		—
	Acquisition		2		2		—		5		(5)
	NON-GAAP ADJUSTED REVENUE**		$ 2,659		$ 2,684		$      2,502		$   2,496		$              5
	Non-GAAP Adjusted Growth		6.3 %		7.3 %
	GAAP OPERATING EXPENSES		$ 2,025		$ 2,039		$       1,909		$   1,909		$             —
	Growth		6.1 %		6.8 %
	Deconversion costs*		5		5		13		13		—
	Acquisition costs		3		3		—		8		(8)
	Gain on assets, net		—		—		(7)		(7)		—
	NON-GAAP ADJUSTED OPERATING EXPENSES**		$ 2,018		$ 2,031		$       1,903		$   1,895		$              8
	Non-GAAP Adjusted Growth		6.0 %		6.7 %
	GAAP OPERATING INCOME		$   658		$    670		$        635		$     635		$             —
	Growth		3.7 %		5.5 %
	GAAP OPERATING MARGIN		24.5 %		24.7 %		25.0 %		25.0 %
	NON-GAAP ADJUSTED OPERATING INCOME**		$   641		$    653		$        598		$     601		$             (3)
	Non-GAAP Adjusted Growth		7.2 %		9.1 %
	NON-GAAP ADJUSTED OPERATING MARGIN		24.1 %		24.3 %		23.9 %		24.1 %
	GAAP EPS		$   7.33		$   7.38		$        6.98		$    6.98		$             —
	Growth		5.0 %		5.7 %

*Deconversion revenue and related operating expenses for fiscal year 2027 are based on the lowest actual recent historical results. See the Company's Form 8-K filed with the Securities and Exchange Commission on August 3, 2023.

**GAAP to Non-GAAP revenue, operating expenses, and operating income may not foot due to rounding.

Balance Sheet and Cash Flow Review

• Cash and cash equivalents were $12 million at June 30, 2026, compared to $102 million at June 30, 2025.
• Trade receivables were $349 million at June 30, 2026, and $318 million at June 30, 2025. 
• The Company had $40 million of borrowings at June 30, 2026, compared to $0 of borrowings at June 30, 2025.
• Deferred revenue was $372 million at June 30, 2026, compared to $363 million at June 30, 2025.
• Stockholders' equity decreased to $2,052 million at June 30, 2026, compared to $2,131 million at June 30, 2025.

*See table below for Net Cash Provided by Operating Activities and on page 14 for Return on Average Stockholders' Equity. Tables reconciling the non-GAAP measures Free Cash Flow and Net Operating Profit After Tax Return on Invested Capital (NOPAT ROIC) to GAAP measures are on pages 14 and 15. See the Use of Non-GAAP Financial Information section below for the definitions of Free Cash Flow and NOPAT ROIC.

The following table summarizes net cash from operating activities:

(Unaudited, in thousands)	Year Ended June 30,
	2026		2025
Net income	$              502,776		$              455,748
Depreciation	42,103		43,700
Amortization	171,138		161,051
Change in deferred income taxes	126,032		(3,496)
Other non-cash expenses	35,023		30,358
Change in receivables	(29,268)		15,056
Change in deferred revenue	9,099		(25,559)
Change in other assets and liabilities*	(94,943)		(35,354)
NET CASH FROM OPERATING ACTIVITIES	$              761,960		$               641,504

*For the fiscal year ended June 30, 2026, the change in other assets and liabilities includes the change in prepaid expenses, deferred costs and other of $(85,512), income taxes of $(14,322), and the change in accounts payable of $(1,431) partially offset by the change in accrued expenses of $6,322. For the fiscal year ended June 30, 2025, the change in other assets and liabilities includes the change in prepaid expenses, deferred costs and other of $(50,933) and the change in accrued expenses of $(3,115) partially offset by the change in income taxes of $16,048 and the change in accounts payable of $2,646.

The following table summarizes net cash from investing activities:

(Unaudited, in thousands)	Year Ended June 30,
	2026		2025
Payment for acquisitions	$              (42,390)		$                        —
Capital expenditures	(67,103)		(53,358)
Proceeds from sale of assets	32,827		3
Purchased software	(4,108)		(5,363)
Computer software developed	(184,243)		(172,445)
Purchase of investments	(13,721)		(2,000)
Proceeds from investments	1,000		1,000
NET CASH FROM INVESTING ACTIVITIES	$             (277,738)		$              (232,163)

The following table summarizes net cash from financing activities:

(Unaudited, in thousands)	Year Ended June 30,
	2026		2025
Borrowings on credit facilities	$             480,000		$            350,000
Repayments on credit facilities	(440,000)		(500,000)
Purchase of treasury stock	(448,173)		(35,051)
Dividends paid	(170,405)		(164,644)
Net cash from issuance of stock and tax related to stock-based compensation	4,459		4,023
NET CASH FROM FINANCING ACTIVITIES	$            (574,119)		$           (345,672)

Use of Non-GAAP Financial Information

Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting in the United States. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, we have provided certain non-GAAP financial measures, including adjusted revenue, adjusted segment revenue, adjusted operating income, adjusted segment income, adjusted cost of revenue, adjusted segment cost of revenue, adjusted operating expenses, adjusted operating margin, adjusted segment income margin, non-GAAP earnings before interest, taxes, depreciation, and amortization (non-GAAP EBITDA), free cash flow, net operating profit after tax return on invested capital (NOPAT ROIC), and non-GAAP adjusted net income.

We believe non-GAAP financial measures help investors better understand the underlying fundamentals and true operations of our business. Adjusted revenue, adjusted segment revenue, adjusted operating income, adjusted operating margin, adjusted segment income, adjusted segment income margin, adjusted cost of revenue, adjusted segment cost of revenue, adjusted operating expenses, and adjusted net income eliminate deconversion revenue and associated costs, the gain on assets, net, an acquisition, and a contractual change, which management believes are not indicative of the Company's operating performance. Such adjustments give investors further insight into our performance. Non-GAAP EBITDA is defined as net income attributable to the Company before the effect of interest income, net, taxes, depreciation, and amortization, adjusted for net income before the effect of interest income, net, taxes, depreciation, and amortization attributable to eliminated deconversions, the gain on assets, net, an acquisition, and a contractual change. Free cash flow is defined as net cash from operating activities, less capitalized expenditures, internal use software, and capitalized software, plus proceeds from the sale of assets. NOPAT ROIC is defined as operating income for the trailing four quarters multiplied by one minus the average effective tax rate (ETR) for the trailing four quarters, with the result divided by average invested capital (average of the beginning and ending period balances). Management believes that non-GAAP EBITDA is an important measure of the Company's overall operating performance and excludes certain costs and other transactions that management deems one time or non-operational in nature; free cash flow is useful to measure the funds generated in a given period that are available for debt service requirements and strategic capital decisions; and NOPAT ROIC is a measure of the Company's allocation efficiency and effectiveness of its invested capital. For these reasons, management also uses these non-GAAP financial measures in its assessment and management of the Company's performance.

Non-GAAP financial measures used by the Company may not be comparable to similarly titled non-GAAP measures used by other companies. Non-GAAP financial measures have no standardized meaning prescribed by GAAP and therefore, are unlikely to be comparable with calculations of similar measures for other companies.

Any non-GAAP financial measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP measures. Reconciliations of the non-GAAP financial measures to related GAAP measures are included.

About Jack Henry & Associates, Inc.^®

Jack Henry^® (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 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 over 7,200 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.

Quarterly Conference Call

The Company will hold a conference call on August 19, 2026, at 7:45 a.m. Central Time, and investors are invited to listen at www.jackhenry.com. A webcast replay will be available approximately one hour after the event at ir.jackhenry.com/corporate-events-and-presentations and will remain available for one year.

Statements made in this news 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 the Company's Securities and Exchange Commission filings, including the Company'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 news release speaks only as of the date of the news release, and the Company expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether because of new information, future events or otherwise.

Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share data)	Three Months Ended June 30,				% Change		Year Ended June 30,				% Change
	2026		2025				2026		2025
REVENUE	$        644,023		$        615,372		4.7 %		$   2,544,339		$    2,375,288		7.1 %
Cost of Revenue	370,175		343,879		7.6 %		1,433,651		1,360,747		5.4 %
Research and Development	49,830		42,580		17.0 %		176,445		162,771		8.4 %
Selling, General, and Administrative	87,245		73,216		19.2 %		299,210		283,055		5.7 %
EXPENSES	507,250		459,675		10.3 %		1,909,306		1,806,573		5.7 %
OPERATING INCOME	136,773		155,697		(12.2) %		635,033		568,715		11.7 %
Interest income	4,949		6,354		(22.1) %		23,144		27,759		(16.6) %
Interest expense	(1,984)		(2,102)		(5.6) %		(5,387)		(10,438)		(48.4) %
Interest Income, net	2,965		4,252		(30.3) %		17,757		17,321		2.5 %
INCOME BEFORE INCOME TAXES	139,738		159,949		(12.6) %		652,790		586,036		11.4 %
Provision for Income Taxes	28,510		32,345		(11.9) %		150,014		130,288		15.1 %
NET INCOME	$         111,228		$        127,604		(12.8) %		$      502,776		$      455,748		10.3 %
Diluted net income per share	$               1.57		$              1.75				$            6.98		$            6.24
Diluted weighted average shares outstanding	70,872		73,005				72,043		73,045
Consolidated Balance Sheet Highlights (Unaudited)
(In thousands)							June 30,				% Change
							2026		2025
Cash and cash equivalents							$        12,056		$        101,953		(88.2) %
Receivables							349,111		317,977		9.8 %
Total assets							3,145,711		3,043,970		3.3 %
Accounts payable and accrued expenses							$      261,476		$      245,299		6.6 %
Debt							40,000		—		— %
Deferred revenue							372,472		363,374		2.5 %
Stockholders' equity							2,051,949		2,130,832		(3.7) %
Calculation of Non-GAAP Earnings Before Interest Income, Net, Income Taxes, Depreciation and Amortization (Non-GAAP EBITDA)
	Three Months Ended June 30,				% Change		Year Ended June 30,				% Change
(Dollars in thousands)	2026		2025				2026		2025
Net income	$         111,228		$        127,604				$      502,776		$      455,748
Net interest	(2,965)		(4,252)				(17,757)		(17,321)
Taxes	28,510		32,345				150,013		130,288
Depreciation and amortization	54,541		51,490				213,241		204,751
Less: Net income before interest expense, taxes, depreciation and amortization attributable to eliminated one-time adjustments*	(3,954)		(18,118)				(35,244)		(30,021)
NON-GAAP EBITDA	$       187,360		$        189,069		(0.9) %		$      813,029		$      743,445		9.4 %
*The fiscal fourth quarter 2026 and 2025 adjustments for net income before interest expense, taxes, depreciation and amortization were for deconversions of ($4,616) and an acquisition of $662, and were for deconversions of ($17,938) and a contract change of ($180), respectively. The fiscal year 2026 and 2025 adjustments were for deconversions of ($29,953), a gain on assets, net, of ($6,829), and an acquisition of $1,538, and were for deconversions of ($27,663) and a contractual change of ($2,358), respectively.
Calculation of Free Cash Flow (Non-GAAP)							Year Ended June 30,
(In thousands)							2026		2025
Net cash from operating activities							$      761,960		$       641,504
Capitalized expenditures							(67,103)		(53,358)
Internal use software							(4,108)		(5,363)
Proceeds from sale of assets							32,827		3
Capitalized software							(184,243)		(172,445)
FREE CASH FLOW							$      539,333		$        410,341
Net income							$      502,776		$      455,748
Operating cash conversion*							151.6 %		140.8 %
Free cash flow conversion (excluding proceeds from sale of assets)*							100.7 %		90.0 %
*Operating cash conversion is net cash from operating activities divided by net income. Free cash flow conversion is free cash flow less proceeds from sale of assets of $32,827 for fiscal 2026 and $3 for fiscal 2025 divided by net income.
Calculation of the Return on Average Stockholders' Equity							June 30,
(In thousands)							2026		2025
Net income (trailing four quarters)							$      502,776		$      455,748
Average stockholder's equity (period beginning and ending balances)							2,091,391		1,986,598
RETURN ON AVERAGE STOCKHOLDERS' EQUITY							24.0 %		22.9 %
Calculation of NOPAT ROIC (Non-GAAP)							June 30,
(In thousands)							2026		2025
Operating income (trailing four quarters)							$     635,033		$       568,715
Average Effective Tax Rate (trailing four quarters)							22.8 %		22.2 %
NOPAT operating income (trailing four quarters)*							490,245		442,460
Average invested capital (period beginning and ending balances)							2,111,391		2,061,598
NOPAT ROIC							23.2 %		21.5 %

*NOPAT operating income is calculated by multiplying the trailing four quarters operating income by one minus the average ETR. NOPAT ROIC is calculated by dividing NOPAT operating income by average invested capital (period beginning and ending balances).

FAQ for Analysts / Investors

1. Why does fiscal 2025 non-GAAP revenue used for growth calculation not match reported fiscal 2025 non-GAAP revenue?

• The restructuring of a third-party agreement resulted in a $16 million fiscal year-over-year revenue headwind, with $12 million of that in the first quarter and $4 million additional in the second, third, and fourth quarters.
• This restructuring also resulted in a decrease in the related costs and the impact on margins was minimal.
• This was adjusted for a consistent fiscal year-over-year comparison.

2.  What will be the impact of the Victor acquisition in fiscal year 2027?

• With the one-year anniversary of the acquisition rolling off on September 30, 2026, Victor's ongoing revenue will be fully integrated into Non-GAAP adjusted (organic) revenue starting October 1, 2026.

 

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SOURCE Jack Henry & Associates, Inc.

FAQ

How did Jack Henry (JKHY) perform in Q4 fiscal 2026?

Jack Henry reported Q4 2026 GAAP revenue of $644.0 million, up 4.7% year over year, with GAAP EPS of $1.57, down 10.2%. According to Jack Henry, non-GAAP adjusted revenue rose 6.6% while non-GAAP adjusted operating income declined 3.1% versus Q4 2025.

What were Jack Henry (JKHY) full-year fiscal 2026 earnings and revenue?

For fiscal 2026, Jack Henry generated GAAP revenue of $2.54 billion, up 7.1%, and GAAP EPS of $6.98, up 11.9%. According to Jack Henry, GAAP operating income increased 11.7% to $635.0 million and non-GAAP adjusted revenue grew 7.3% year over year.

What guidance did Jack Henry (JKHY) give for fiscal 2027 revenue and EPS?

Jack Henry guided fiscal 2027 GAAP revenue to $2.684–$2.709 billion and GAAP EPS to $7.33–$7.38. According to Jack Henry, the company expects GAAP operating margin of 24.5–24.7% and non-GAAP adjusted operating margin of 24.1–24.3%, assuming no acquisitions or dispositions.

How did Jack Henry’s margins change in fiscal 2026?

Jack Henry’s GAAP operating margin for fiscal 2026 was 25.0%, up from 23.9% in 2025. According to Jack Henry, non-GAAP adjusted operating margin reached 24.1%, compared with 23.2% a year earlier, reflecting higher operating income growth than revenue growth.

What share repurchases did Jack Henry (JKHY) complete in fiscal 2026?

Jack Henry repurchased $448 million of stock in fiscal 2026 at an average price of $152 per share. According to Jack Henry, Q4 2026 alone included $164 million of buybacks at an average price of $140 per share, returning capital to shareholders.

How did Jack Henry’s cash, debt, and ROIC look at the end of fiscal 2026?

At June 30, 2026, Jack Henry held $12.1 million in cash and $40 million of debt on credit facilities. According to Jack Henry, cash fell from $102.0 million year over year, and return on invested capital for fiscal 2026 was 23.2%.

What drove Jack Henry’s revenue growth across segments in fiscal 2026?

Jack Henry reported fiscal 2026 revenue growth in core, payments, complementary, and corporate services segments, with total GAAP revenue up 7.1%. According to Jack Henry, key drivers included higher cloud hosting, digital banking, card, faster payments, consulting, and implementation revenues across its platform.