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

Rhea-AI Summary

Jack Henry & Associates (Nasdaq: JKHY) reported fiscal Q3 ended March 31, 2026: GAAP revenue $636.2M (+8.7%), GAAP operating income $155.0M (+11.8%), and GAAP diluted EPS $1.71 (+12.2%). Fiscal YTD GAAP EPS was $5.41 (+20.4%).

The company repurchased $159M of stock in the quarter ($284M fiscal YTD), reduced credit facility debt to $90M, and provided full-year fiscal 2026 GAAP revenue guidance of $2,521M–$2,533M with EPS $6.78–$6.87. Management noted expected relative weakness in Q4 non-GAAP revenue and margins while raising full-year non-GAAP revenue and GAAP EPS guidance.

Positive

• GAAP operating income +11.8% for Q3 (to $155.0M)
• GAAP diluted EPS +12.2% for Q3 (to $1.71)
• Fiscal YTD GAAP EPS +20.4% (to $5.41)
• Stock repurchases of $159M in Q3 ($284M fiscal YTD)
• Credit facility debt reduced from $170M to $90M

Negative

• Cash and cash equivalents declined from $39.9M to $20.6M
• Company anticipates relative weakness in fiscal Q4 non-GAAP revenue and margins
• Research and development expense increased 14.5% in the quarter

News Market Reaction – JKHY

-4.33%

-4.33% Session close to close

In the May 6 session, JKHY declined 4.33%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement reports strong Q3 and year-to-date performance, with GAAP revenue up 8.7% in the q...

Analysis

This announcement reports strong Q3 and year-to-date performance, with GAAP revenue up 8.7% in the quarter and GAAP EPS up 12.2% to $1.71. Year-to-date EPS reached $5.41, and the company increased full-year fiscal 2026 guidance, including GAAP EPS of $6.78–$6.87. Segment growth was broad, supported by cloud, digital, and faster payments. Investors may watch deconversion revenue normalization, execution against higher guidance, and how ongoing share repurchases and debt levels affect future flexibility.

Key Figures

Q3 2026 GAAP revenue: $636.245M Q3 2026 GAAP EPS: $1.71 FYTD 2026 GAAP EPS: $5.41 +5 more

8 metrics

Q3 2026 GAAP revenue $636.245M Three months ended March 31, 2026

Q3 2026 GAAP EPS $1.71 Up from $1.52 in prior-year quarter (12.2% growth)

FYTD 2026 GAAP EPS $5.41 Nine months ended March 31, 2026 vs $4.49 prior year

Cash and equivalents $20.6M Balance at March 31, 2026 (vs $39.9M a year earlier)

Debt outstanding $90M Credit facilities balance at March 31, 2026 (vs $170M prior year)

Q3 share repurchases $159M Repurchases in quarter at average price $162 per share

FYTD share repurchases $284M Year-to-date through March 31, 2026 at $160 per share

FY26 GAAP EPS guidance $6.78–$6.87 Full-year fiscal 2026 guidance range

Historical Context

5 past events · Latest: Apr 28 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 28	Deconversion update	Positive	+0.6%	Raised full-year deconversion revenue estimate following strong Q3 deconversion fees.
Apr 28	Client survey	Positive	+1.2%	Survey showed rising tech budgets and focus on AI, digital, and payments.
Apr 22	Earnings webcast notice	Neutral	-0.6%	Announced timing and access details for upcoming Q3 earnings call.
Apr 20	Sustainability report	Neutral	-0.1%	Published 2026 Sustainability Report with SASB and TCFD disclosures.
Mar 24	Client win	Positive	-2.7%	Won core and digital banking business for two banks moving to an outsourced model.

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

Pattern Detected

Recent news has been a mix of operational updates, client wins, and ESG disclosures. Commercially positive items (deconversion revenue upside, tech-spend survey) saw modest positive reactions, while a notable bank win coincided with a larger one-day decline, indicating the stock does not always reward clearly positive fundamentals immediately.

Recent Company History

Over the last few months, Jack Henry has highlighted client activity, market positioning, and corporate initiatives. On Mar 24, it announced new core and digital banking wins with FM BANK and Quoin Financial Bank. In April, it released its 2026 Sustainability Report and scheduled the Q3 earnings webcast for May 6. It then disclosed stronger deconversion revenue and a survey showing rising tech budgets. Today’s Q3 results and raised guidance build directly on that backdrop of solid demand and client engagement.

Key Terms

non-gaap, ebitda, operating margin

3 terms

non-gaap financial

"Non-GAAP adjusted revenue increased 7.3% and non-GAAP adjusted operating..."

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

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.

View in glossary

operating margin financial

"Operating margin 4 | 24.7 % | 24.9 %"

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.

View in glossary

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Third quarter summary:

• GAAP revenue increased 8.7% and GAAP operating income increased 11.8% for the fiscal three months ended March 31, 2026, compared to the prior fiscal year quarter.
• Non-GAAP adjusted revenue increased 7.3% and non-GAAP adjusted operating income increased 7.3% for the fiscal three months ended March 31, 2026, compared to the prior fiscal year quarter.¹
• GAAP EPS was $1.71 per diluted share for the fiscal three months ended March 31, 2026, compared to $1.52 per diluted share in the prior fiscal year quarter representing growth of 12.2%.
• Stock repurchases for the fiscal three months ended March 31, 2026, were $159 million at an average of $162 per share.

Fiscal year-to-date summary:

• GAAP revenue increased 8.0% and GAAP operating income increased 20.6% for the fiscal year-to-date period ended March 31, 2026, compared to the prior fiscal year-to-date period.
• Non-GAAP adjusted revenue increased 7.6% and non-GAAP adjusted operating income increased 16.7% for the fiscal year-to-date period ended March 31, 2026, compared to the prior fiscal year-to-date period.¹
• GAAP EPS was $5.41 per diluted share for the fiscal year-to-date period ended March 31, 2026, compared to $4.49 per diluted share in the prior fiscal year-to-date period representing growth of 20.4%.
• Cash and cash equivalents were $20.6 million at March 31, 2026, and $39.9 million at March 31, 2025.
• Debt outstanding for credit facilities was $90 million at March 31, 2026, and $170 million at March 31, 2025.
• Stock repurchases for fiscal year-to-date period ended March 31, 2026, were $284 million at an average of $160 per share.

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

	Current
GAAP	Low	High
Revenue	$2,521	$2,533
Operating margin4	24.7 %	24.9 %
EPS	$6.78	$6.87
Non-GAAP5
Adjusted revenue	$2,479	$2,491
Adjusted operating margin	23.9 %	24.1 %

MONETT, Mo., May 5, 2026 /PRNewswire/ -- Jack Henry & Associates, Inc. (Nasdaq: JKHY), a leading financial technology provider, today announced results for fiscal third quarter ended March 31, 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 additional acquisitions or dispositions will be made during fiscal year 2026.

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

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

According to Greg Adelson, President and CEO, "We delivered very strong third-quarter financial results, reflecting our differentiated set of modern solutions, unwavering focus on helping banks and credit unions win in the markets they serve, and disciplined execution across our business. Sales momentum remained strong, highlighted by 17 competitive core wins in the quarter, our best third quarter for new core wins in the last seven years. The sales pipeline is increasing, fueled by increased technology spending and competitive uncertainty, positioning Jack Henry well for driving long-term growth and value creation."

Operating Results

Revenue, operating expenses, operating income, and net income for the fiscal three and nine months ended March 31, 2026, compared to the fiscal three and nine months ended March 31, 2025, were as follows:

Revenue
(Unaudited, dollars in thousands)	Three Months Ended March 31,				% Change		Nine Months Ended March 31,				% Change
	2026		2025				2026		2025
Revenue
Services and Support	$    365,149		$    330,792		10.4 %		$  1,087,808		$   1,010,498		7.7 %
Percentage of Total Revenue	57.4 %		56.5 %				57.2 %		57.4 %
Processing	271,096		254,295		6.6 %		812,508		749,418		8.4 %
Percentage of Total Revenue	42.6 %		43.5 %				42.8 %		42.6 %
REVENUE	$   636,245		$    585,087		8.7 %		$  1,900,316		$    1,759,916		8.0 %

• Services and support revenue increased for the fiscal three months ended March 31, 2026, primarily driven by growth in data processing and hosting revenue within private and public cloud revenue of 9.4% and higher deconversion revenue by $9,021. Processing revenue increased for the fiscal three months ended March 31, 2026, primarily driven by growth in digital and transaction revenue of 9.9%, card revenue of 3.6%, and faster payments revenue of 46.4%.
• Services and support revenue increased for the fiscal nine months ended March 31, 2026, primarily driven by growth in data processing and hosting revenue within private and public cloud revenue of 8.9% and higher deconversion revenue by $20,094. Processing revenue increased for the fiscal nine months ended March 31, 2026, primarily driven by growth in digital and transaction revenue of 12.8%, card revenue of 6.2%, and faster payments revenue of 50.5%.
• For the fiscal three months ended March 31, 2026, core segment revenue increased 9.2%, payments segment revenue increased 7.0%, complementary segment revenue increased 8.7%, and corporate services segment revenue increased 27.5%. For the fiscal three months ended March 31, 2026, core segment non-GAAP adjusted revenue increased 8.6%, payments segment non-GAAP adjusted revenue increased 4.7%, complementary segment non-GAAP adjusted revenue increased 7.2%, and corporate services non-GAAP adjusted segment revenue increased 27.1%. Total non-GAAP adjusted revenue increased 7.3% 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 nine months ended March 31, 2026, core segment revenue increased 5.9%, payments segment revenue increased 8.0%, complementary segment revenue increased 9.5%, and corporate services segment revenue increased 14.5%. For the fiscal nine months ended March 31, 2026, core segment non-GAAP adjusted revenue increased 7.4%, payments segment non-GAAP adjusted revenue increased 6.5%, complementary segment non-GAAP adjusted revenue increased 8.4%, and corporate services non-GAAP adjusted segment revenue increased 14.2%. Total non-GAAP adjusted revenue increased 7.6% 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 March 31,				% Change		Nine Months Ended March 31,				% Change
	2026		2025				2026		2025
Cost of Revenue	$   363,922		$   340,586		6.9 %		$ 1,063,476		$   1,016,868		4.6 %
Percentage of Total Revenue6	57.2 %		58.2 %				56.0 %		57.8 %
Research and Development	45,110		39,411		14.5 %		126,615		120,192		5.3 %
Percentage of Total Revenue6	7.1 %		6.7 %				6.7 %		6.8 %
Selling, General, and Administrative	72,166		66,350		8.8 %		211,965		209,839		1.0 %
Percentage of Total Revenue6	11.3 %		11.3 %				11.2 %		11.9 %
OPERATING EXPENSES	481,198		446,347		7.8 %		1,402,056		1,346,899		4.1 %
OPERATING INCOME	$   155,047		$     138,740		11.8 %		$   498,260		$     413,017		20.6 %
Operating Margin6	24.4 %		23.7 %				26.2 %		23.5 %

• Cost of revenue increased for the fiscal three months ended March 31, 2026, compared to the fiscal three months ended March 31, 2025, primarily due to higher personnel costs, including compensation and benefit costs, partially related to a headcount increase in the trailing twelve months, higher direct costs generally consistent with increases in related lines of revenue, as well as increased amortization of intangible assets.
• Cost of revenue increased for the fiscal nine months ended March 31, 2026, compared to the fiscal nine months ended March 31, 2025, primarily due to higher personnel costs, including compensation and benefit costs, partially related to a headcount increase in the trailing twelve months, higher direct costs generally consistent with increases in related lines of revenue, and increased amortization of intangible assets. Personnel cost increases over the prior year period were tempered by lower than normal medical claims earlier in the fiscal year.
• Research and development expense increased for the fiscal three and nine months ended March 31, 2026, compared to the fiscal three and nine months ended March 31, 2025, primarily due to higher personnel costs (net of capitalization), including compensation and benefit costs, partially related to a headcount increase in the trailing twelve months.
• Selling, general, and administrative expense increased for the fiscal three months ended March 31, 2026, compared to the fiscal three months ended March 31, 2025, primarily due to higher personnel costs, including compensation and benefit costs, partially related to a headcount increase in the trailing twelve months.
• Selling, general, and administrative expense increased for the fiscal nine months ended March 31, 2026, compared to the fiscal nine months ended March 31, 2025, primarily due to higher personnel costs, including compensation and benefit costs, partially related to a headcount increase in the trailing twelve months and the higher gain on assets, net, in the current fiscal year period of $5,267 compared to the prior fiscal year period. Personnel cost increases over the prior year period were tempered by lower than normal medical claims earlier in the fiscal year.

Net Income

(Unaudited, in thousands, except per share data)	Three Months Ended March 31,				% Change		Nine Months Ended March 31,				% Change
	2026		2025				2026		2025
Income Before Income Taxes	$      158,541		$       141,908		11.7 %		$      513,052		$      426,087		20.4 %
Provision for Income Taxes	35,647		30,800		15.7 %		121,503		97,943		24.1 %
NET INCOME	$      122,894		$         111,108		10.6 %		$      391,549		$      328,144		19.3 %
Diluted earnings per share	$            1.71		$           1.52		12.2 %		$          5.41		$          4.49		20.4 %

• Effective tax rates for the fiscal three and nine months ended March 31, 2026, and 2025, were 22.5% and 23.7% and 21.7% and 23.0%, respectively.

According to Mimi Carsley, CFO and Treasurer, "During the third quarter, we delivered strong growth in several key revenue areas, including continued expansion in cloud revenue and solid performance from our faster payments products and digital offerings. We anticipate relative weakness to the year to date in fiscal Q4 non-GAAP revenue and margins consistent with previously stated expectations. Based on our positive outlook, we have increased our full year non-GAAP revenue, non-GAAP margin expansion, and GAAP EPS guidance."

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 nine months ended March 31, 2026, compared to the fiscal three and nine months ended March 31, 2025, excluding the impacts of deconversions in the fiscal quarter and fiscal year-to-date periods ended March 31, 2026, and March 31, 2025, the acquisition in the current fiscal quarter and fiscal year-to-date period, the gain on assets, net, in the current fiscal year-to-date period, and the impact of a contract change in the prior fiscal quarter and fiscal year-to-date period.

(Unaudited, dollars in thousands)	Three Months Ended March 31,				% Change		Nine Months Ended March 31,				% Change
	2026		2025				2026		2025
GAAP Revenue*	$  636,245		$   585,087		8.7 %		$ 1,900,316		$  1,759,916		8.0 %
Adjustments:
Deconversion revenue	(18,665)		(9,644)				(33,504)		(13,410)
Revenue related to a contract change	—		(1,201)				—		(14,672)
Revenue from the acquisition	(1,651)		—				(3,595)		—
NON-GAAP ADJUSTED REVENUE*	$   615,929		$   574,242		7.3 %		$ 1,863,217		$ 1,731,834		7.6 %
GAAP Operating Income	$   155,047		$   138,740		11.8 %		$  498,260		$    413,017		20.6 %
Adjustments:
Operating income from deconversions	(14,635)		(6,851)				(25,337)		(9,724)
Operating income related to a contract change	—		(209)				—		(2,178)
Gain on assets, net	—		—				(6,829)		—
Operating loss from the acquisition	833		—				1,817		—
NON-GAAP ADJUSTED OPERATING INCOME	$   141,245		$    131,680		7.3 %		$   467,911		$    401,115		16.7 %
Non-GAAP Adjusted Operating Margin**	22.9 %		22.9 %				25.1 %		23.2 %
GAAP Net Income	$   122,894		$     111,108		10.6 %		$  391,549		$   328,144		19.3 %
Adjustments:
Net income from deconversions	(14,635)		(6,851)				(25,337)		(9,724)
Net income related to a contract change	—		(209)				—		(2,178)
Gain on assets, net	—		—				(6,829)		—
Net loss from the acquisition	833		—				1,817		—
Tax impact of adjustments***	3,313		1,694				7,284		2,857
NON-GAAP ADJUSTED NET INCOME	$    112,405		$    105,742		6.3 %		$ 368,484		$   319,099		15.5 %

*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 March 31, 2026, and 2025, which was $18,665 for the current fiscal year quarter and $9,644 for the prior fiscal year quarter, and reducing the three months ended March 31, 2025, amount also for revenue related to a contractual change of $1,201, results in non-GAAP adjusted services and support revenue growth of 8.3% quarter over quarter. Processing revenue less revenue from the acquisition for the three months ended March 31, 2026, of $1,651, results in non-GAAP adjusted processing revenue growth of 6.0% quarter over quarter.

Services and support revenue less deconversion revenue for the nine months ended March 31, 2026, and 2025 which was $33,504 for the current fiscal year period and $13,410 for the prior fiscal year period, and reducing the nine months ended March 31, 2025, amount also for revenue related to a contractual change of $14,672, results in non-GAAP adjusted services and support revenue growth of 7.3% period over period. Processing revenue less revenue from the acquisition for the three months ended March 31, 2026, of $3,595, results in non-GAAP adjusted processing revenue growth of 7.9% 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 nine months ended March 31, 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 March 31, 2026
(Unaudited, dollars in thousands)	Core		Payments		Complementary		Corporate Services		Total
GAAP REVENUE	$ 195,448		$ 232,720		$          187,489		$   20,588		$ 636,245
Non-GAAP adjustments*	(7,506)		(7,574)		(5,054)		(182)		(20,316)
NON-GAAP ADJUSTED REVENUE	187,942		225,146		182,435		20,406		615,929
GAAP COST OF REVENUE	81,208		119,602		72,192		90,920		363,922
Non-GAAP adjustments*	(1,971)		(1,577)		(482)		(166)		(4,196)
NON-GAAP ADJUSTED COST OF REVENUE	79,237		118,025		71,710		90,754		359,726
GAAP SEGMENT INCOME	$  114,240		$    113,118		$           115,297		$  (70,332)
Segment Income Margin**	58.5 %		48.6 %		61.5 %		(341.6) %
NON-GAAP ADJUSTED SEGMENT INCOME	$ 108,705		$   107,121		$           110,725		$  (70,348)
Non-GAAP Adjusted Segment Income Margin**	57.8 %		47.6 %		60.7 %		(344.7) %
Research and Development									45,110
Selling, General, and Administrative									72,166
Non-GAAP adjustments unassigned to a segment***									(2,318)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES									474,684
NON-GAAP ADJUSTED OPERATING INCOME									$  141,245

*Revenue non-GAAP adjustments for the Payments segment were ($1,651) of acquisition revenue and ($5,923) 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 ($1,453) of acquisition costs and ($124) of deconversion costs. Cost of revenue non-GAAP adjustments for the Corporate Services segment were ($160) of acquisition costs and ($6) 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 $1,446, research and development costs related to the acquisition of $841, and selling, general, and administrative costs related to the acquisition of $31.

	Three Months Ended March 31, 2025
(Unaudited, dollars in thousands)	Core		Payments		Complementary		Corporate Services		Total
GAAP REVENUE	$  179,052		$  217,449		$          172,442		$     16,144		$  585,087
Non-GAAP adjustments*	(6,039)		(2,394)		(2,324)		(88)		(10,845)
NON-GAAP ADJUSTED REVENUE	173,013		215,055		170,118		16,056		574,242
GAAP COST OF REVENUE	74,713		116,266		69,077		80,530		340,586
Non-GAAP adjustments*	(2,232)		(109)		(519)		(5)		(2,865)
NON-GAAP ADJUSTED COST OF REVENUE	72,481		116,157		68,558		80,525		337,721
GAAP SEGMENT INCOME	$ 104,339		$   101,183		$          103,365		$  (64,386)
Segment Income Margin**	58.3 %		46.5 %		59.9 %		(398.8) %
NON-GAAP ADJUSTED SEGMENT INCOME	$ 100,532		$  98,898		$           101,560		$  (64,469)
Non-GAAP Adjusted Segment Income Margin	58.1 %		46.0 %		59.7 %		(401.5) %
Research and Development									39,411
Selling, General, and Administrative									66,350
Non-GAAP adjustments unassigned to a segment***									(920)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES									442,562
NON-GAAP ADJUSTED OPERATING INCOME									$   131,680

*Revenue non-GAAP adjustments for the Core segment were ($1,201) of revenue related to the contractual change and ($4,838) 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 ($992) and ($1,240) 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.

	Nine Months Ended March 31, 2026
(Unaudited, dollars in thousands)	Core		Payments		Complementary		Corporate Services		Total
GAAP REVENUE	$ 576,841		$ 695,588		$          563,414		$   64,473		$ 1,900,316
Non-GAAP adjustments*	(13,775)		(14,399)		(8,632)		(293)		(37,099)
NON-GAAP ADJUSTED REVENUE	563,066		681,189		554,782		64,180		1,863,217
GAAP COST OF REVENUE	229,130		358,306		213,717		262,323		1,063,476
Non-GAAP adjustments*	(3,117)		(4,276)		(1,078)		(260)		(8,731)
NON-GAAP ADJUSTED COST OF REVENUE	226,013		354,030		212,639		262,063		1,054,745
GAAP SEGMENT INCOME	$   347,711		$ 337,282		$         349,697		$ (197,850)
Segment Income Margin**	60.3 %		48.5 %		62.1 %		(306.9) %
NON-GAAP ADJUSTED SEGMENT INCOME	$ 337,053		$  327,159		$          342,143		$ (197,883)
Non-GAAP Adjusted Segment Income Margin	59.9 %		48.0 %		61.7 %		(308.3) %
Research and Development									126,615
Selling, General, and Administrative									211,965
Non-GAAP adjustments unassigned to a segment***									1,981
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES									1,395,306
NON-GAAP ADJUSTED OPERATING INCOME									$   467,911

*Revenue non-GAAP adjustments for the Payments segment were ($3,595) of acquisition revenue and ($10,804) 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 ($3,863) of acquisition costs and ($413) of deconversion costs. Cost of revenue non-GAAP adjustments for the Corporate Services segment were ($253) of acquisition costs and ($7) 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 $3,551, research and development costs related to the acquisition of $1,213, and selling, general, and administrative costs related to the acquisition of $84.

	Nine Months Ended March 31, 2025
(Unaudited, dollars in thousands)	Core		Payments		Complementary		Corporate Services		Total
GAAP REVENUE	$ 544,948		$ 644,207		$          514,454		$   56,307		$  1,759,916
Non-GAAP adjustments*	(20,777)		(4,341)		(2,857)		(107)		(28,082)
NON-GAAP ADJUSTED REVENUE	524,171		639,866		511,597		56,200		1,731,834
GAAP COST OF REVENUE	225,850		344,023		200,763		246,232		1,016,868
Non-GAAP adjustments*	(13,859)		(180)		(678)		(5)		(14,722)
NON-GAAP ADJUSTED COST OF REVENUE	211,991		343,843		200,085		246,227		1,002,146
GAAP SEGMENT INCOME	$ 319,098		$ 300,184		$           313,691		$ (189,925)
Segment Income Margin**	58.6 %		46.6 %		61.0 %		(337.3) %
NON-GAAP ADJUSTED SEGMENT INCOME	$  312,180		$ 296,023		$            311,512		$ (190,027)
Non-GAAP Adjusted Segment Income Margin	59.6 %		46.3 %		60.9 %		(338.1) %
Research and Development									120,192
Selling, General, and Administrative									209,839
Non-GAAP adjustments unassigned to a segment***									(1,458)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES									1,330,719
NON-GAAP ADJUSTED OPERATING INCOME									$    401,115

*Revenue non-GAAP adjustments for the Core segment were ($14,672) of revenue related to the contractual change and ($6,105) 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 ($12,494) and ($1,365) 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 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'26				Adjusted for FY26 Comparison		Reported		Contractual Change
			Low		High		FY25		FY25		FY25
	GAAP REVENUE		$  2,521		$ 2,533		$       2,375		$    2,375		$            —
	Growth		6.1 %		6.6 %
	Deconversions*		37		37		34		34		—
	Acquisition		5		5		—		—		—
	Contractual change		—		—		16		—		16
	NON-GAAP ADJUSTED REVENUE**		$  2,479		$  2,491		$       2,326		$    2,341		$           (16)
	Non-GAAP Adjusted Growth		6.6 %		7.1 %
	GAAP OPERATING EXPENSES		$  1,899		$  1,903		$       1,807		$    1,807		$            —
	Growth		5.1 %		5.3 %
	Deconversion costs*		12		12		6		6		—
	Acquisition costs		8		8		—		—		—
	Contractual change		—		—		14		—		14
	Gain on assets, net		(7)		(7)		—		—		—
	NON-GAAP ADJUSTED OPERATING EXPENSES**		$  1,886		$  1,890		$       1,787		$    1,800		$           (14)
	Non-GAAP Adjusted Growth		5.6 %		5.8 %
	GAAP OPERATING INCOME		$    622		$   630		$        569		$     569		$            —
	Growth		9.3 %		10.7 %
	GAAP OPERATING MARGIN		24.7 %		24.9 %		23.9 %		23.9 %
	NON-GAAP ADJUSTED OPERATING INCOME**		$   593		$    601		$         539		$      541		$            (2)
	Non-GAAP Adjusted Growth		10.1 %		11.5 %
	NON-GAAP ADJUSTED OPERATING MARGIN		23.9 %		24.1 %		23.2 %		23.1 %
	GAAP EPS		$   6.78		$   6.87		$        6.24		$     6.24		$            —
	Growth		8.7 %		10.0 %

*Deconversion revenue and related operating expenses are based on actual results for fiscal nine months ended March 31, 2026, 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 April 28, 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 $21 million at March 31, 2026, compared to $40 million at March 31, 2025.
• Trade receivables were $282 million at March 31, 2026, and March 31, 2025. 
• The Company had $90 million of borrowings at March 31, 2026, compared to $170 million of borrowings at March 31, 2025.
• Deferred revenue was $209 million at March 31, 2026, compared to $222 million at March 31, 2025.
• Stockholders' equity increased to $2,135 million at March 31, 2026, compared to $2,036 million at March 31, 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)	Nine Months Ended March 31,
	2026		2025
Net income	$              391,549		$               328,144
Depreciation	31,238		33,125
Amortization	127,462		120,136
Change in deferred income taxes	100,347		(12,765)
Other non-cash expenses	21,512		22,411
Change in receivables	37,379		50,871
Change in deferred revenue	(154,631)		(167,104)
Change in other assets and liabilities*	(95,570)		(60,426)
NET CASH FROM OPERATING ACTIVITIES	$              459,286		$               314,392

*For the fiscal nine months ended March 31, 2026, the change in other assets and liabilities includes the change in prepaid expenses, deferred costs and other of $(61,680), accrued expenses of $(19,137), income taxes of $(8,383), and the change in accounts payable of $(6,370). For the fiscal nine months ended March 31, 2025, the change in other assets and liabilities includes the change in prepaid expenses, deferred costs and other of $(42,989), the change in accrued expenses of $(23,436), and the change in accounts payable of $(9,541) partially offset by the change in income taxes of $15,540.

The following table summarizes net cash from investing activities:

(Unaudited, in thousands)	Nine Months Ended March 31,
	2026		2025
Payment for acquisitions	$              (42,390)		$                      —
Capital expenditures	(46,616)		(41,186)
Proceeds from sale of assets	24,572		—
Purchased software	(2,998)		(3,833)
Computer software developed	(140,003)		(130,298)
Purchase of investments	(13,710)		(2,000)
Proceeds from investments	1,000		1,000
NET CASH FROM INVESTING ACTIVITIES	$             (220,145)		$               (176,317)

The following table summarizes net cash from financing activities:

(Unaudited, in thousands)	Nine Months Ended March 31,
	2026		2025
Borrowings on credit facilities	$            360,000		$             255,000
Repayments on credit facilities	(270,000)		(235,000)
Purchase of treasury stock	(284,414)		(35,052)
Dividends paid	(127,457)		(122,464)
Net cash from issuance of stock and tax related to stock-based compensation	1,350		1,027
NET CASH FROM FINANCING ACTIVITIES	$            (320,521)		$            (136,489)

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 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 one-time 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 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 May 6, 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 March 31,				% Change		Nine Months Ended March 31,				% Change
	2026		2025				2026		2025
REVENUE	$       636,245		$       585,087		8.7 %		$     1,900,316		$      1,759,916		8.0 %
Cost of Revenue	363,922		340,586		6.9 %		1,063,476		1,016,868		4.6 %
Research and Development	45,110		39,411		14.5 %		126,615		120,192		5.3 %
Selling, General, and Administrative	72,166		66,350		8.8 %		211,965		209,839		1.0 %
EXPENSES	481,198		446,347		7.8 %		1,402,056		1,346,899		4.1 %
OPERATING INCOME	155,047		138,740		11.8 %		498,260		413,017		20.6 %
Interest income	4,869		5,899		(17.5) %		18,194		21,406		(15.0) %
Interest expense	(1,375)		(2,731)		(49.7) %		(3,402)		(8,336)		(59.2) %
Interest Income, net	3,494		3,168		10.3 %		14,792		13,070		13.2 %
INCOME BEFORE INCOME TAXES	158,541		141,908		11.7 %		513,052		426,087		20.4 %
Provision for Income Taxes	35,647		30,800		15.7 %		121,503		97,943		24.1 %
NET INCOME	$        122,894		$           111,108		10.6 %		$       391,549		$       328,144		19.3 %
Diluted net income per share	$             1.71		$             1.52				$           5.41		$           4.49
Diluted weighted average shares outstanding	71,978		73,013				72,433		73,058
Consolidated Balance Sheet Highlights (Unaudited)
(In thousands)							March 31,				% Change
							2026		2025
Cash and cash equivalents							$        20,573		$        39,870		(48.4) %
Receivables							282,463		282,162		0.1 %
Total assets							3,050,557		2,932,018		4.0 %
Accounts payable and accrued expenses							$        212,133		$       201,389		5.3 %
Current and long-term debt							90,000		170,000		(47.1) %
Deferred revenue							208,742		221,828		(5.9) %
Stockholders' equity							2,134,811		2,036,431		4.8 %
Calculation of Non-GAAP Earnings Before Interest Income, Net, Income Taxes, Depreciation and Amortization (Non-GAAP EBITDA)
	Three Months Ended March 31,				% Change		Nine Months Ended March 31,				% Change
(Dollars in thousands)	2026		2025				2026		2025
Net income	$        122,894		$           111,108				$       391,549		$       328,144
Net interest	(3,494)		(3,168)				(14,792)		(13,070)
Taxes	35,647		30,800				121,503		97,943
Depreciation and amortization	53,653		51,013				158,700		153,261
Less: Net income before interest expense, taxes, depreciation and amortization attributable to eliminated one-time adjustments*	(14,275)		(7,060)				(31,290)		(11,901)
NON-GAAP EBITDA	$       194,425		$        182,693		6.4 %		$      625,670		$       554,377		12.9 %
*The fiscal third quarter 2026 and 2025 adjustments for net income before interest expense, taxes, depreciation and amortization were for deconversions of ($14,636) and an acquisition of $361, and were for deconversions of $6,851 and a contract change of $209, respectively. The fiscal year-to-date 2026 and 2025 adjustments were for deconversions of ($25,337), a gain on assets, net, of ($6,829), and an acquisition of $876, and were for deconversions of ($9,723) and a contractual change of ($2,178), respectively.

Calculation of Free Cash Flow (Non-GAAP)							Nine Months Ended March 31,
(In thousands)							2026		2025
Net cash from operating activities							$      459,286		$       314,392
Capitalized expenditures							(46,616)		(41,186)
Internal use software							(2,998)		(3,833)
Proceeds from sale of assets							24,572		—
Capitalized software							(140,003)		(130,298)
FREE CASH FLOW							$       294,241		$       139,075
Net income							$       391,549		$       328,144
Operating cash conversion*							117.3 %		95.8 %
Free cash flow conversion (excluding proceeds from sale of assets)*							68.9 %		42.4 %
*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 Stockholders' Equity							March 31,
(In thousands)							2026		2025
Net income (trailing four quarters)							$       519,153		$        429,217
Average stockholder's equity (period beginning and ending balances)							2,085,621		1,908,181
RETURN ON AVERAGE STOCKHOLDERS' EQUITY							24.9 %		22.5 %
Calculation of NOPAT ROIC (Non-GAAP)							March 31,
(In thousands)							2026		2025
Operating income (trailing four quarters)							$     653,957		$     538,644
Average Effective Tax Rate (trailing four quarters)							22.8 %		22.8 %
NOPAT operating income (trailing four quarters)*							504,855		415,833
Average invested capital (period beginning and ending balances)							2,215,621		2,118,181
NOPAT ROIC							22.8 %		19.6 %

*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 and $3 million additional in the second and third quarters.

• The remaining $1 million is expected to impact the fourth quarter.

• 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 fourth quarter 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 fourth quarter of fiscal 2025.

• We expect some contraction in margins in the fourth quarter of fiscal 2026 compared to the fiscal year-to-date period margins that positively benefited from lower than normal expense for medical claims under our self-insured employee healthcare plan, especially during the first and second quarters.

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SOURCE Jack Henry & Associates, Inc.

FAQ

What were Jack Henry (JKHY) fiscal Q3 2026 results for revenue and EPS?

JKHY reported GAAP revenue of $636.2M and GAAP diluted EPS of $1.71 for Q3 2026. According to company, revenue rose 8.7% year-over-year and EPS increased 12.2% versus prior-year quarter, reflecting growth across services and processing businesses.

How much stock did Jack Henry (JKHY) repurchase in fiscal Q3 2026 and year-to-date?

The company repurchased $159M of stock in fiscal Q3 and $284M fiscal year-to-date. According to company, the repurchases averaged about $162 per share in Q3 and $160 per share fiscal year-to-date.

What guidance did Jack Henry (JKHY) give for full-year fiscal 2026 revenue and EPS?

Full-year GAAP revenue guidance is $2,521M to $2,533M with GAAP EPS $6.78 to $6.87. According to company, the guidance assumes no additional acquisitions or dispositions in fiscal 2026.

Why did Jack Henry (JKHY) say Q4 non-GAAP revenue and margins may be weaker?

Management expects relative weakness in fiscal Q4 non-GAAP revenue and margins due to seasonal and timing factors. According to company, this expectation is consistent with previously stated planning while full-year non-GAAP revenue and margin guidance was increased.

How did Jack Henry (JKHY) perform on operating income and segment growth in Q3 2026?

GAAP operating income rose 11.8% to $155.0M in Q3 2026. According to company, core, payments, complementary and corporate services segments all reported revenue growth, with corporate services up 27.5% for the quarter.