Jack Henry & Associates, Inc. Reports Second Quarter Fiscal 2026 Results

Rhea-AI Summary

Jack Henry & Associates (Nasdaq: JKHY) reported fiscal Q2 2026 results for the quarter ended December 31, 2025. GAAP revenue was $619.3M (up 7.9% YoY) and GAAP operating income was $159.1M (up 29.4% YoY). GAAP diluted EPS was $1.72 (up 28.6% YoY).

Fiscal year-to-date GAAP revenue rose 7.6% to $1,264.1M and GAAP EPS was $3.70. Cash and equivalents were $28.2M and debt outstanding on credit facilities fell to $20M. Full-year fiscal 2026 GAAP guidance: revenue $2,508M–$2,525M and EPS $6.61–$6.72.

Positive

• Operating income +29.4% YoY for Q2
• Diluted EPS +28.6% YoY to $1.72 in Q2
• Operating margin expanded from 21.4% to 25.7% in Q2 (+430 bps)
• Debt outstanding cut to $20M from $150M year‑over‑year
• Full-year guidance provided: GAAP revenue $2,508M–$2,525M and EPS $6.61–$6.72

Negative

• Provision for income taxes increased 33.8% YoY in Q2 to $39.5M

News Market Reaction

-7.27% 2.5x vol

2 alerts

-7.27% News Effect

-$993M Valuation Impact

$12.66B Market Cap

2.5x Rel. Volume

On the day this news was published, JKHY declined 7.27%, reflecting a notable negative market reaction. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $993M from the company's valuation, bringing the market cap to $12.66B at that time. Trading volume was elevated at 2.5x the daily average, suggesting increased selling activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q2 GAAP revenue: $619,334,000 Q2 GAAP EPS: $1.72 FY26 GAAP revenue guide (low): $2,508,000,000 +5 more

8 metrics

Q2 GAAP revenue $619,334,000 Three months ended December 31, 2025 vs $573,848,000 in 2024; 7.9% growth

Q2 GAAP EPS $1.72 Three months ended December 31, 2025 vs $1.34 prior year; 28.6% growth

FY26 GAAP revenue guide (low) $2,508,000,000 Full year fiscal 2026 GAAP revenue guidance, low end

FY26 GAAP EPS guide (low) $6.61 Full year fiscal 2026 GAAP EPS guidance, low end

Q2 operating margin 25.7% Three months ended December 31, 2025 vs 21.4% prior year

Non-GAAP adj operating margin 25.1% Three months ended December 31, 2025 vs 21.6% prior year

Cash and cash equivalents $28.2 million Balance at December 31, 2025 vs $25.7 million at December 31, 2024

Debt outstanding $20 million Debt related to credit facilities at December 31, 2025 vs $150 million in 2024

Market Reality Check

Price: $173.36 Vol: Volume 1,010,000 vs 20-da...

normal vol

$173.36 Last Close

Volume Volume 1,010,000 vs 20-day average 700,426 (relative volume 1.44x) ahead of the earnings release. normal

Technical Trading above 200-day MA with price 179.18 vs 200-day MA 171.32, and about mid-range between 52-week low 144.12 and high 196.00.

Peers on Argus

No sector-wide momentum flagged. Peers show mixed moves: CACI, AUR, and IT down,...

No sector-wide momentum flagged. Peers show mixed moves: CACI, AUR, and IT down, while CDW and GIB are up, suggesting today’s setup is company-specific rather than a broad IT services rotation.

Common Catalyst Earnings season in information technology services, with peer Gartner (IT) also reporting quarterly results.

Historical Context

5 past events · Latest: Jan 28 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 28	Product enhancement	Positive	+0.5%	Launch of Bud-powered transaction enrichment on Banno Digital Platform.
Jan 27	Revenue update	Positive	+0.5%	Reported $6.2M Q2 deconversion revenue and raised full-year estimate.
Jan 26	Partnership deal	Positive	-1.2%	CorServ credit card issuing tech integrated into Banno Digital Platform.
Jan 21	Earnings call notice	Neutral	+0.5%	Scheduled webcast details for fiscal Q2 2026 earnings call.
Jan 12	Product launch	Positive	+0.6%	Announced Rapid Transfers me-to-me payments, live with many institutions.

Pattern Detected

Recent news items have mostly seen modest positive price reactions, with one partnership headline drawing a small negative move, indicating generally constructive but measured responses to announcements.

Recent Company History

This announcement follows a series of product and ecosystem updates in early 2026, including Rapid Transfers rollout, a CorServ partnership for integrated credit card management, and transaction enrichment via Bud Financial. Deconversion revenue results for Q2 2026 were also highlighted separately and tied to an 8-K. Recent items typically produced modest single-day moves within about a percent in either direction, suggesting that even meaningful operational updates have led to incremental rather than dramatic repricing.

Market Pulse Summary

The stock moved -7.3% in the session following this news. A negative reaction despite strong reporte...

Analysis

The stock moved -7.3% in the session following this news. A negative reaction despite strong reported results would contrast with the generally modestly positive responses seen after recent announcements. Q2 delivered GAAP EPS of $1.72, revenue of $619.3M, and non-GAAP adjusted operating income growth of over 20%. A decline could reflect concerns not evident in the reported numbers, such as expectations embedded in prior pricing or broader macro and sector factors that sometimes overshadow company-specific fundamentals.

Key Terms

gaap, non-gaap, ebitda, operating margin, +2 more

6 terms

gaap financial

"GAAP revenue increased 7.9% and GAAP operating income increased 29.4%..."

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.

non-gaap financial

"Non-GAAP adjusted revenue increased 6.7% and non-GAAP adjusted operating income..."

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.

ebitda financial

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

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

operating margin financial

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

Operating margin shows how much profit a company makes from its core business activities after paying for costs like wages and materials. It’s useful because it tells you how efficiently a company is running—higher margins mean it keeps more money from each dollar of sales, which can indicate better management or stronger products.

restricted stock units financial

"received 1,220 restricted stock units (RSUs), each representing the economic equivalent..."

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

visa direct technical

"using debit rails via Visa Direct and Mastercard Move."

A real-time payment service that lets businesses and individuals push money directly to a debit card, bank account, or mobile wallet, similar to handing someone cash instantly through a digital channel. It matters to investors because faster, simpler transfers can increase transaction volume and customer use of a payment network, drive fee-based revenue, and make a company’s payment services more competitive and sticky with customers.

AI-generated analysis. Not financial advice.

Second quarter summary:

• GAAP revenue increased 7.9% and GAAP operating income increased 29.4% for the fiscal three months ended December 31, 2025, compared to the prior fiscal year quarter.
• Non-GAAP adjusted revenue increased 6.7% and non-GAAP adjusted operating income increased 24.3% for the fiscal three months ended December 31, 2025, compared to the prior fiscal year quarter.¹
• GAAP EPS was $1.72 per diluted share for the fiscal three months ended December 31, 2025, compared to $1.34 per diluted share in the prior fiscal year quarter representing growth of 28.6%.

Fiscal year-to-date summary:

• GAAP revenue increased 7.6% and GAAP operating income increased 25.1% for the fiscal year-to-date period ended December 31, 2025, compared to the prior fiscal year-to-date period.
• Non-GAAP adjusted revenue increased 7.7% and non-GAAP adjusted operating income increased 21.2% for the fiscal year-to-date period ended December 31, 2025, compared to the prior fiscal year-to-date period.¹
• GAAP EPS was $3.70 per diluted share for the fiscal year-to-date period ended December 31, 2025, compared to $2.97 per diluted share in the prior fiscal year-to-date period representing growth of 24.5%.
• Cash and cash equivalents were $28.2 million at December 31, 2025, and $25.7 million at December 31, 2024.
• Debt outstanding related to credit facilities was $20 million at December 31, 2025, and $150 million at December 31, 2024.

Full year fiscal 2026 guidance (Dollars in millions):³

	Current
GAAP	Low	High
Revenue	$2,508	$2,525
Operating margin4	24.3 %	24.5 %
EPS	$6.61	$6.72
Non-GAAP5
Adjusted revenue	$2,474	$2,491
Adjusted operating margin	23.7 %	23.9 %

MONETT, Mo., Feb. 3, 2026 /PRNewswire/ -- Jack Henry & Associates, Inc. (Nasdaq: JKHY), a leading financial technology provider, today announced results for fiscal second quarter ended December 31, 2025.

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 additional acquisitions or dispositions will be made during fiscal year 2026.

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

5 See tables below on page 9 reconciling fiscal year 2026 GAAP to non-GAAP guidance.

According to Greg Adelson, President and CEO, "We are pleased to report very strong financial results for the second quarter of our fiscal year. Our sales teams delivered outstanding results across all areas, including our core segment where we won 22 competitive core deals in the quarter while maintaining a robust pipeline fueled by a growing demand environment. Our new public cloud-native solutions – including the Jack Henry Platform™, Tap2Local™ and Rapid Transfers – are experiencing strong momentum and providing meaningful competitive advantages for our bank and credit union clients. We are extremely well-positioned in the market and remain laser-focused on our key differentiators of culture, service, innovation, strategy, and execution."

Operating Results

Revenue, operating expenses, operating income, and net income for the fiscal three and six months ended December 31, 2025, compared to the fiscal three and six months ended December 31, 2024, were as follows:

Revenue
(Unaudited, dollars in thousands)	Three Months Ended December 31,				% Change		Six Months Ended December 31,				% Change
	2025		2024				2025		2024
Revenue
Services and Support	$    345,809		$       323,027		7.1 %		$      722,659		$       679,706		6.3 %
Percentage of Total Revenue	55.8 %		56.3 %				57.2 %		57.9 %
Processing	273,525		250,821		9.1 %		541,412		495,123		9.3 %
Percentage of Total Revenue	44.2 %		43.7 %				42.8 %		42.1 %
REVENUE	$      619,334		$      573,848		7.9 %		$    1,264,071		$      1,174,829		7.6 %

• Services and support revenue increased for the fiscal three months ended December 31, 2025, primarily driven by growth in data processing and hosting revenue within private and public cloud revenue of 9.2% and higher deconversion revenue by $6,143. Processing revenue increased for the fiscal three months ended December 31, 2025, primarily driven by growth in digital and transaction revenue of 14.8%, card revenue of 6.1%, and faster payments products revenue, of 52.1%.
• Services and support revenue increased for the fiscal six months ended December 31, 2025, primarily driven by growth in data processing and hosting revenue within private and public cloud revenue of 8.6% and higher deconversion revenue by $11,072. Processing revenue increased for the fiscal six months ended December 31, 2025, primarily driven by growth in card revenue of 7.5%, digital and transaction revenue of 14.3%, and faster payments products revenue of 53.9%.
• For the fiscal three months ended December 31, 2025, core segment revenue increased 8.4%, payments segment revenue increased 8.0%, complementary segment revenue increased 9.6%, and corporate and other segment revenue decreased 9.8%. For the fiscal three months ended December 31, 2025, core segment non-GAAP adjusted revenue increased 7.4%, payments segment non-GAAP adjusted revenue increased 6.4%, complementary segment non-GAAP adjusted revenue increased 8.7%, and corporate and other non-GAAP adjusted segment revenue decreased 10.1%. Total non-GAAP adjusted revenue increased 6.7% for the same period (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 six months ended December 31, 2025, core segment revenue increased 4.2%, payments segment revenue increased 8.5%, complementary segment revenue increased 9.9%, and corporate and other segment revenue increased 9.3%. For the fiscal six months ended December 31, 2025, core segment non-GAAP adjusted revenue increased 6.8%, payments segment non-GAAP adjusted revenue increased 7.4%, complementary segment non-GAAP adjusted revenue increased 9.0%, and corporate and other non-GAAP adjusted segment revenue increased 9.0%. Total non-GAAP adjusted revenue increased 7.7% for the same period (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 December 31,				% Change		Six Months Ended December 31,				% Change
	2025		2024				2025		2024
Cost of Revenue	$     350,989		$      332,850		5.4 %		$     699,554		$       676,282		3.4 %
Percentage of Total Revenue6	56.7 %		58.0 %				55.3 %		57.6 %
Research and Development	42,228		41,095		2.8 %		81,505		80,780		0.9 %
Percentage of Total Revenue6	6.8 %		7.2 %				6.4 %		6.9 %
Selling, General, and Administrative	66,969		76,901		(12.9) %		139,799		143,489		(2.6) %
Percentage of Total Revenue6	10.8 %		13.4 %				11.1 %		12.2 %
OPERATING EXPENSES	460,186		450,846		2.1 %		920,858		900,551		2.3 %
OPERATING INCOME	$       159,148		$       123,002		29.4 %		$      343,213		$       274,278		25.1 %
Operating Margin6	25.7 %		21.4 %				27.2 %		23.3 %

• Cost of revenue increased for the fiscal three months ended December 31, 2025, compared to the fiscal three months ended December 31, 2024, primarily due to higher direct costs generally consistent with increases in related lines of revenue and higher personnel costs tempered by lower than normal medical claims, quarter-over-quarter.
• Cost of revenue increased for the fiscal six months ended December 31, 2025, compared to the fiscal six months ended December 31, 2024, primarily due to higher direct costs generally consistent with increases in related lines of revenue, higher personnel costs tempered by lower than normal medical claims, and increased amortization of intangible assets, period over period.
• Research and development expense increased for the fiscal three and six months ended December 31, 2025, compared to the fiscal three and six months ended December 31, 2024.
• Selling, general, and administrative expense decreased for the fiscal three months ended December 31, 2025, compared to the fiscal three months ended December 31, 2024, primarily due to the decrease in travel and entertainment and meeting expenses related to the timing of our Connect conference and the higher gain on sale of assets, net, in the current fiscal year quarter of $3,032 compared to the prior fiscal year quarter.
• Selling, general, and administrative expense decreased for the fiscal six months ended December 31, 2025, compared to the fiscal six months ended December 31, 2024, primarily due to higher personnel costs partially related to a limited increase in employee headcount in the trailing twelve months and higher professional service costs that were more than offset by lower than normal medical claims and the higher gain on sale of assets, net, in the current fiscal year period of $6,829 compared to the prior fiscal year period.

Net Income

(Unaudited, in thousands, except per share data)	Three Months Ended December 31,				% Change		Six Months Ended December 31,				% Change
	2025		2024				2025		2024
Income Before Income Taxes	$          164,193		$            127,381		28.9 %		$          354,511		$          284,179		24.7 %
Provision for Income Taxes	39,525		29,536		33.8 %		85,856		67,143		27.9 %
NET INCOME	$         124,668		$           97,845		27.4 %		$        268,655		$           217,036		23.8 %
Diluted earnings per share	$                 1.72		$                 1.34		28.6 %		$                3.70		$                 2.97		24.5 %

• Effective tax rates for the fiscal three and six months ended December 31, 2025, and 2024, were 24.1% and 24.2% and 23.2% and 23.6%, respectively.

According to Mimi Carsley, CFO and Treasurer, "Our second quarter results included continuing robust growth in key areas of our revenue that include solid growth in cloud revenue, demand momentum from our faster payments products, card and digital. Overall, revenue grew 8% on a GAAP basis and 7% on a non-GAAP basis. Revenue growth contributed to non-GAAP operating income growth of over 24%, benefitting from our disciplined approach to costs and lower than normal medical claims experience on our self-insured healthcare plan."

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 and six months ended December 31, 2025, compared to the fiscal three and six months ended December 31, 2024, excluding the impacts of deconversions in the fiscal quarters and fiscal year-to-date periods ended December 31, 2025, and December 31, 2024, the gain on sale of assets, net, in the current fiscal quarter and fiscal year-to-date period, the impact of a contract change in the prior fiscal quarter and fiscal year-to-date period, and the acquisition in the current fiscal quarter and fiscal year-to-date period.

(Unaudited, dollars in thousands)	Three Months Ended December 31,				% Change		Six Months Ended December 31,				% Change
	2025		2024				2025		2024
GAAP Revenue*	$     619,334		$     573,848		7.9 %		$   1,264,071		$    1,174,829		7.6 %
Adjustments:
Deconversion revenue	(6,212)		(69)				(14,838)		(3,766)
Revenue related to a contract change	—		(1,223)				—		(13,471)
Revenue from the acquisition	(1,945)		—				(1,945)		—
NON-GAAP ADJUSTED REVENUE*	$        611,177		$     572,556		6.7 %		$  1,247,288		$    1,157,592		7.7 %
GAAP Operating Income	$      159,148		$      123,002		29.4 %		$     343,213		$      274,278		25.1 %
Adjustments:
Operating (income) loss from deconversions	(3,600)		622				(10,701)		(2,873)
Operating income related to a contract change	—		(164)				—		(1,970)
Gain on sale of assets, net	(3,032)		—				(6,829)		—
Operating (income) loss from the acquisition	984		—				984		—
NON-GAAP ADJUSTED OPERATING INCOME	$     153,500		$      123,460		24.3 %		$     326,667		$     269,435		21.2 %
Non-GAAP Adjusted Operating Margin**	25.1 %		21.6 %				26.2 %		23.3 %
GAAP Net Income	$     124,668		$       97,845		27.4 %		$    268,655		$       217,036		23.8 %
Adjustments:
Net (income) loss from deconversions	(3,600)		622				(10,701)		(2,873)
Net income related to a contract change	—		(164)						(1,970)
Gain on sale of assets, net	(3,032)		—				(6,829)		—
Net loss from the acquisition	984		—				984		—
Tax impact of adjustments***	1,356		(110)				3,971		1,162
NON-GAAP ADJUSTED NET INCOME	$      120,376		$         98,193		22.6 %		$    256,080		$      213,355		20.0 %

*GAAP revenue is comprised of services and support and processing revenues (see page 2). Services and support revenue less deconversion revenue for the three months ended December 31, 2025, and 2024 which was $6,212 for the current fiscal year quarter and $69 for the prior fiscal year quarter, and reducing the three months ended December 31, 2024, amount also for revenue related to a contractual change of $1,223, results in non-GAAP adjusted services and support revenue growth of 5.6% quarter over quarter. Processing revenue less revenue from the acquisition for the three months ended December 31, 2025, of $1,945, results in non-GAAP adjusted processing revenue growth of 8.3% quarter over quarter.

Services and support revenue less deconversion revenue for the six months ended December 31, 2025, and 2024 which was $14,838 for the current fiscal year period and $3,766 for the prior fiscal year period, and reducing the six months ended December 31, 2024, amount also for revenue related to a contractual change of $13,471, results in non-GAAP adjusted services and support revenue growth of 6.8% period over period. Processing revenue less revenue from the acquisition for the three months ended December 31, 2025, of $1,945, results in non-GAAP adjusted processing revenue growth of 9.0% period over period.

**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 and  six months ended December 31, 2025, and 2024. 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 December 31, 2025
(Unaudited, dollars in thousands)	Core		Payments		Complementary		Corporate and Other		Total
GAAP REVENUE	$  186,100		$   231,975		$                 181,708		$       19,551		$  619,334
Non-GAAP adjustments*	(3,050)		(3,342)		(1,702)		(63)		(8,157)
NON-GAAP ADJUSTED REVENUE	183,050		228,633		180,006		19,488		611,177
GAAP COST OF REVENUE	74,930		120,044		69,265		86,750		350,989
Non-GAAP adjustments*	(703)		(2,547)		(288)		(94)		(3,632)
NON-GAAP ADJUSTED COST OF REVENUE	74,227		117,497		68,977		86,656		347,357
GAAP SEGMENT INCOME	$      111,170		$      111,931		$                 112,443		$    (67,199)
Segment Income Margin**	59.7 %		48.3 %		61.9 %		(343.7) %
NON-GAAP ADJUSTED SEGMENT INCOME	$ 108,823		$      111,136		$                  111,029		$    (67,168)
Non-GAAP Adjusted Segment Income Margin**	59.4 %		48.6 %		61.7 %		(344.7) %
Research and Development									42,228
Selling, General, and Administrative									66,969
Non-GAAP adjustments unassigned to a segment***									1,123
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES									457,677
NON-GAAP ADJUSTED OPERATING INCOME									$  153,500

*Revenue non-GAAP adjustments for the Payments segment were ($1,945) of acquisition revenue and ($1,397) 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 ($2,409) of acquisition costs and ($138) of deconversion costs. Cost of revenue non-GAAP adjustment for the Corporate and Other segment was acquisition 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 sale of assets of $3,032 less deconversion costs of $1,484, research and development costs related to the acquisition of $371, and selling, general, and administrative costs related to the acquisition of $54.

	Three Months Ended December 31, 2024
(Unaudited, dollars in thousands)	Core		Payments		Complementary		Corporate and Other		Total
GAAP REVENUE	$    171,607		$  214,836		$                165,732		$       21,673		$   573,848
Non-GAAP adjustments*	(1,203)		(34)		(60)		5		(1,292)
NON-GAAP ADJUSTED REVENUE	170,404		214,802		165,672		21,678		572,556
GAAP COST OF REVENUE	70,324		114,738		64,542		83,246		332,850
Non-GAAP adjustments*	(1,147)		(53)		(99)		—		(1,299)
NON-GAAP ADJUSTED COST OF REVENUE	69,177		114,685		64,443		83,246		331,551
GAAP SEGMENT INCOME	$   101,283		$  100,098		$                  101,190		$     (61,573)
Segment Income Margin**	59.0 %		46.6 %		61.1 %		(284.1) %
NON-GAAP ADJUSTED SEGMENT INCOME	$    101,227		$     100,117		$                 101,229		$    (61,568)
Non-GAAP Adjusted Segment Income Margin	59.4 %		46.6 %		61.1 %		(284.0) %
Research and Development									41,095
Selling, General, and Administrative									76,901
Non-GAAP adjustments unassigned to a segment***									(451)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES									449,096
NON-GAAP ADJUSTED OPERATING INCOME									$    123,460

*Revenue non-GAAP adjustments for the Core segment were ($1,223) of revenue related to the contractual change and $20 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 ($1,059) and ($88) 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.

	Six Months Ended December 31, 2025
(Unaudited, dollars in thousands)	Core		Payments		Complementary		Corporate and Other		Total
GAAP REVENUE	$  381,393		$ 462,868		$               375,926		$     43,884		$  1,264,071
Non-GAAP adjustments*	(6,269)		(6,825)		(3,578)		(111)		(16,783)
NON-GAAP ADJUSTED REVENUE	375,124		456,043		372,348		43,773		1,247,288
GAAP COST OF REVENUE	148,067		238,703		141,526		171,258		699,554
Non-GAAP adjustments*	(1,146)		(2,698)		(596)		(95)		(4,535)
NON-GAAP ADJUSTED COST OF REVENUE	146,921		236,005		140,930		171,163		695,019
GAAP SEGMENT INCOME	$ 233,326		$   224,165		$              234,400		$   (127,374)
Segment Income Margin**	61.2 %		48.4 %		62.4 %		(290.3) %
NON-GAAP ADJUSTED SEGMENT INCOME	$ 228,203		$ 220,038		$                 231,418		$  (127,390)
Non-GAAP Adjusted Segment Income Margin	60.8 %		48.2 %		62.2 %		(291.0) %
Research and Development									81,505
Selling, General, and Administrative									139,799
Non-GAAP adjustments unassigned to a segment***									4,298
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES									920,621
NON-GAAP ADJUSTED OPERATING INCOME									$   326,667

*Revenue non-GAAP adjustments for the Payments segment were ($1,945) of acquisition revenue and ($4,880) 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 ($2,409) of acquisition costs and ($289) of deconversion costs. Cost of revenue non-GAAP adjustments for the Corporate and Other segment were ($94) of acquisition costs and ($1) 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 sale of assets of $6,829 less deconversion costs of $2,106, research and development costs related to the acquisition of $371, and selling, general, and administrative costs related to the acquisition of $54.

	Six Months Ended December 31, 2024
(Unaudited, dollars in thousands)	Core		Payments		Complementary		Corporate and Other		Total
GAAP REVENUE	$ 365,896		$ 426,758		$                342,012		$      40,163		$   1,174,829
Non-GAAP adjustments*	(14,738)		(1,948)		(533)		(18)		(17,237)
NON-GAAP ADJUSTED REVENUE	351,158		424,810		341,479		40,145		1,157,592
GAAP COST OF REVENUE	151,271		227,757		131,686		165,568		676,282
Non-GAAP adjustments*	(11,626)		(71)		(159)		—		(11,856)
NON-GAAP ADJUSTED COST OF REVENUE	139,645		227,686		131,527		165,568		664,426
GAAP SEGMENT INCOME	$  214,625		$   199,001		$                210,326		$  (125,405)
Segment Income Margin**	58.7 %		46.6 %		61.5 %		(312.2) %
NON-GAAP ADJUSTED SEGMENT INCOME	$     211,513		$    197,124		$              209,952		$  (125,423)
Non-GAAP Adjusted Segment Income Margin	60.2 %		46.4 %		61.5 %		(312.4) %
Research and Development									80,780
Selling, General, and Administrative									143,489
Non-GAAP adjustments unassigned to a segment***									(538)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES									888,157
NON-GAAP ADJUSTED OPERATING INCOME									$   269,435

*Revenue non-GAAP adjustments for the Core segment were ($13,471) of revenue related to the contractual change and ($1,267) 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 ($11,501) and ($125) 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, 2026. Fiscal year 2026 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 sale of assets, 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'26				Adjusted for FY26 Comparison		Reported		Contractual Change
			Low		High		FY25		FY25		FY25
	GAAP REVENUE		$  2,508		$  2,525		$          2,375		$      2,375		$                   —
	Growth		5.6 %		6.3 %
	Deconversions*		28		28		34		34		—
	Acquisition		6		6		—		—		—
	Contractual change		—		—		16		—		16
	NON-GAAP ADJUSTED REVENUE**		$  2,474		$   2,491		$          2,326		$      2,341		$                 (16)
	Non-GAAP Adjusted Growth		6.4 %		7.1 %
	GAAP OPERATING EXPENSES		$   1,900		$   1,906		$           1,807		$      1,807		$                   —
	Growth		5.2 %		5.5 %
	Deconversion costs*		7		7		6		6		—
	Acquisition costs		11		11		—		—		—
	Contractual change		—		—		14		—		14
	Gain on sale of assets		(7)		(7)		—		—		—
	NON-GAAP ADJUSTED OPERATING EXPENSES**		$   1,889		$   1,895		$            1,787		$      1,800		$                 (14)
	Non-GAAP Adjusted Growth		5.7 %		6.1 %
	GAAP OPERATING INCOME		$     609		$      619		$             569		$         569		$                   —
	Growth		7.0 %		8.8 %
	GAAP OPERATING MARGIN		24.3 %		24.5 %		23.9 %		23.9 %
	NON-GAAP ADJUSTED OPERATING INCOME**		$     586		$     596		$             539		$         541		$                   (2)
	Non-GAAP Adjusted Growth		8.7 %		10.6 %
	NON-GAAP ADJUSTED OPERATING MARGIN		23.7 %		23.9 %		23.2 %		23.1 %
	GAAP EPS		$     6.61		$     6.72		$            6.24		$        6.24		$                   —
	Growth		6.0 %		7.7 %

*Deconversion revenue and related operating expenses are based on actual results for fiscal six months ended December 31, 2025, and estimates for the remainder of the fiscal year 2026. See the Company's Form 8-K filed with the Securities and Exchange Commission on January 27, 2026.

**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 $28 million at December 31, 2025, compared to $26 million at December 31, 2024.
• Trade receivables were $298 million at December 31, 2025, compared to $283 million at December 31, 2024.
• The Company had $20 million of borrowings at December 31, 2025, compared to $150 million of borrowings at December 31, 2024.
• Deferred revenue was $271 million at December 31, 2025, compared to $269 million at December 31, 2024.
• Stockholders' equity increased to $2,203 million at December 31, 2025, compared to $1,976 million at December 31, 2024.

*See table below for Net Cash Provided by Operating Activities and on page 14 for Return on Average Shareholders' 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)	Six Months Ended December 31,
	2025		2024
Net income	$                     268,655		$                        217,036
Depreciation	20,743		22,731
Amortization	84,304		79,517
Change in deferred income taxes	69,734		(8,745)
Other non-cash expenses	9,416		15,535
Change in receivables	21,385		49,811
Change in deferred revenue	(92,379)		(119,463)
Change in other assets and liabilities*	(108,603)		(49,879)
NET CASH FROM OPERATING ACTIVITIES	$                      273,255		$                      206,543

*For the fiscal six months ended December 31, 2025, the change in other assets and liabilities includes the change in prepaid expenses, deferred costs and other of $(56,056), accrued expenses of $(34,863), income taxes of $(9,345), and the change in accounts payable of $(8,339). For the fiscal six months ended December 31, 2024, the change in other assets and liabilities includes the change in prepaid expenses, deferred costs and other of $(34,384), the change in accrued expenses of $(19,450), the change in accounts payable of $(5,583) partially offset by the change in income taxes of $9,538.

The following table summarizes net cash from investing activities:

(Unaudited, in thousands)	Six Months Ended December 31,
	2025		2024
Payment for acquisitions	$                       (42,391)		$                                  —
Capital expenditures	(30,096)		(29,469)
Proceeds from sale of assets	24,572		—
Purchased software	(2,908)		(3,528)
Computer software developed	(92,484)		(85,803)
Purchase of investments	(13,500)		(2,000)
Proceeds from investments	1,000		1,000
NET CASH FROM INVESTING ACTIVITIES	$                    (155,807)		$                       (119,800)

The following table summarizes net cash from financing activities:

(Unaudited, in thousands)	Six Months Ended December 31,
	2025		2024
Borrowings on credit facilities	$                    125,000		$                     165,000
Repayments on credit facilities	(105,000)		(165,000)
Purchase of treasury stock	(125,237)		(17,050)
Dividends paid	(83,979)		(80,193)
Net cash from issuance of stock and tax related to stock-based compensation	(1,969)		(2,131)
NET CASH FROM FINANCING ACTIVITIES	$                    (191,185)		$                     (99,374)

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 one-time deconversion revenue and associated costs, the gain on sale of 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 expense, taxes, depreciation, and amortization, adjusted for net income before the effect of interest expense, taxes, depreciation, and amortization attributable to eliminated one-time deconversions, the gain on sale of 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^TM (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.

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.

Quarterly Conference Call

The Company will hold a conference call on February 4, 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.

Condensed Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share data)	Three Months Ended December 31,				% Change		Six Months Ended December 31,				% Change
	2025		2024				2025		2024
REVENUE	$            619,334		$            573,848		7.9 %		$    1,264,071		$      1,174,829		7.6 %
Cost of Revenue	350,989		332,850		5.4 %		699,554		676,282		3.4 %
Research and Development	42,228		41,095		2.8 %		81,505		80,780		0.9 %
Selling, General, and Administrative	66,969		76,901		(12.9) %		139,799		143,489		(2.6) %
EXPENSES	460,186		450,846		2.1 %		920,858		900,551		2.3 %
OPERATING INCOME	159,148		123,002		29.4 %		343,213		274,278		25.1 %
Interest income	6,187		7,159		(13.6) %		13,326		15,506		(14.1) %
Interest expense	(1,142)		(2,780)		(58.9) %		(2,028)		(5,605)		(63.8) %
Interest Income, net	5,045		4,379		15.2 %		11,298		9,901		14.1 %
INCOME BEFORE INCOME TAXES	164,193		127,381		28.9 %		354,511		284,179		24.7 %
Provision for Income Taxes	39,525		29,536		33.8 %		85,856		67,143		27.9 %
NET INCOME	$            124,668		$              97,845		27.4 %		$     268,655		$        217,036		23.8 %
Diluted net income per share	$                    1.72		$                    1.34				$            3.70		$              2.97
Diluted weighted average shares outstanding	72,413		73,082				72,661		73,080

Consolidated Balance Sheet Highlights (Unaudited)
(In thousands)							December 31,				% Change
							2025		2024
Cash and cash equivalents							$        28,216		$         25,653		10.0 %
Receivables							298,458		283,223		5.4 %
Total assets							3,060,044		2,911,770		5.1 %
Accounts payable and accrued expenses							$       191,905		$      209,926		(8.6) %
Current and long-term debt							20,000		150,000		(86.7) %
Deferred revenue							270,994		269,469		0.6 %
Stockholders' equity							2,203,058		1,975,565		11.5 %

Calculation of Non-GAAP Earnings Before Income Taxes, Depreciation and Amortization (Non-GAAP EBITDA)
	Three Months Ended December 31,				% Change		Six Months Ended December 31,				% Change
(Dollars in thousands)	2025		2024				2025		2024
Net income	$            124,668		$              97,845				$     268,655		$        217,036
Net interest	(5,045)		(4,379)				(11,298)		(9,901)
Taxes	39,525		29,536				85,856		67,143
Depreciation and amortization	53,155		51,754				105,047		102,248
Less: Net income before interest expense, taxes, depreciation and amortization attributable to eliminated one-time adjustments*	(6,118)		458				(17,015)		(4,842)
NON-GAAP EBITDA	$            206,185		$              175,214		17.7 %		$     431,245		$        371,684		16.0 %

*The fiscal second quarter 2026 and 2025 adjustments for net income before interest expense, taxes, depreciation and amortization were for deconversions of ($3,600), a gain on sale of assets, net, of ($3,032), and an acquisition of $514, and were for deconversions of $622 and a contract change of ($164), respectively. The fiscal year-to-date 2026 and 2025 adjustments were for deconversions of ($10,701), a gain on sale of assets, net, of ($6,828), and an acquisition of $514, and were for deconversions of ($2,873) and a contractual change of ($1,969), respectively.

Calculation of Free Cash Flow (Non-GAAP)							Six Months Ended December 31,
(In thousands)							2025		2024
Net cash from operating activities							$     273,255		$      206,543
Capitalized expenditures							(30,096)		(29,469)
Internal use software							(2,908)		(3,528)
Proceeds from sale of assets							24,572		—
Capitalized software							(92,484)		(85,803)
FREE CASH FLOW							$       172,339		$         87,743
Net income							$     268,655		$        217,036
Operating cash conversion*							101.7 %		95.2 %
Free cash flow conversion (excluding proceeds from sale of assets)*							55.0 %		40.4 %

*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 $24,572 for fiscal 2026 and $0 for fiscal 2025 divided by net income.

Calculation of the Return on Average Shareholders' Equity							December 31,
(In thousands)							2025		2024
Net income (trailing four quarters)							$     507,367		$      405,208
Average stockholder's equity (period beginning and ending balances)							2,089,312		1,849,976
RETURN ON AVERAGE SHAREHOLDERS' EQUITY							24.3 %		21.9 %
Calculation of NOPAT  ROIC (Non-GAAP)							December 31,
(In thousands)							2025		2024
Operating income (trailing four quarters)							$   637,650		$      512,003
Average Effective Tax Rate (trailing four quarters)							22.6 %		23.3 %
NOPAT operating income (trailing four quarters)*							493,541		392,706
Average invested capital (period beginning and ending balances)							2,174,312		2,052,476
NOPAT ROIC							22.7 %		19.1 %

*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 has resulted in a $16 million fiscal year-over-year revenue headwind, with $12 million of that coming in the first quarter.
• The remaining $4 million will impact the rest of the fiscal year.
• This restructuring has also resulted in a decrease in the related costs and the impact on margins is expected to be minimal.
• This has been adjusted for a consistent fiscal year-over-year comparison and is included in our fiscal year 2026 guidance (see page 9).

2.) What are some key elements of the outlook for the second half of fiscal 2026?

• We expect the year-over-year revenue growth rates to slow slightly as we face overall tougher prior year comparables from the second half of fiscal 2025.
• We expect some contraction in margins in the second half of fiscal 2026 compared to the first half where we experienced lower than normal expense for medical claims under our self-insured employee healthcare plan.

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SOURCE Jack Henry & Associates, Inc.

FAQ

What were Jack Henry (JKHY) Q2 fiscal 2026 revenue and EPS results?

JKHY reported GAAP revenue of $619.3 million and GAAP diluted EPS of $1.72 for Q2 fiscal 2026. According to the company, revenue rose 7.9% and EPS rose 28.6% versus the prior-year quarter, driven by processing and cloud revenue growth.

How did Jack Henry (JKHY) operating income and margins change in Q2 2026?

GAAP operating income increased to $159.1 million, up 29.4% year-over-year, and operating margin rose to 25.7%. According to the company, margin expansion reflected revenue growth, disciplined costs, and favorable medical claims experience.

What is Jack Henry's (JKHY) full-year fiscal 2026 guidance for revenue and EPS?

The company provided GAAP guidance of $2,508M–$2,525M revenue and $6.61–$6.72 EPS for fiscal 2026. According to the company, the guidance assumes no additional acquisitions or dispositions during the fiscal year.

How did Jack Henry (JKHY) cash and debt position change at Dec 31, 2025?

Cash and cash equivalents were $28.2 million and credit facility debt outstanding was $20 million at Dec 31, 2025. According to the company, debt outstanding declined significantly from $150 million a year earlier.

Which business areas drove Jack Henry's (JKHY) Q2 2026 revenue growth?

Growth was led by processing and cloud-related services, with digital and transaction revenue up 14.8% and faster payments up 52.1% in Q2. According to the company, momentum came from public cloud-native solutions and stronger payments product demand.