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Jack Henry Q1 2027 earnings rise to $2.28 a share

Full-year deconversion revenue and related expense assumptions combine first-quarter actuals with estimates for the remainder of fiscal 2027.

Available on EDGAR Accepted by SEC EDGAR
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(High)
Filing Sentiment

Sentiment and the balance of points

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Form Type
8-K

Rhea-AI Filing Summary

Jack Henry & Associates, Inc. (JKHY) reported fiscal first-quarter 2027 GAAP revenue of $701.547 million for the three months ended September 30, 2026, up 8.8% year over year. GAAP operating income rose 12.5% to $207.071 million, net income rose 11.4% to $160.412 million, and diluted EPS was $2.28, up 15.6%. Non-GAAP adjusted revenue increased 7.2% to $682.178 million, and adjusted operating income increased 11.2% to $192.631 million.

Fiscal 2027 guidance is GAAP revenue of $2.698 billion to $2.718 billion and diluted EPS of $7.47 to $7.51; it assumes no acquisitions or dispositions during the fiscal year. Cash from operations was $161.253 million, versus $120.590 million a year earlier. The company repurchased $71 million of stock at an average price of $153.47 per share. Cash and equivalents were $25.4 million at September 30, 2026, while debt outstanding was $85 million.

5 points · 0 major

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

0 major · 0 points

How the balance works

Positive

  • Moderate pointGAAP revenue increased 8.8% to $701.547 million.
  • Moderate pointGAAP operating income increased 12.5% to $207.071 million.
  • Moderate pointGAAP net income increased 11.4% to $160.412 million.
  • Moderate pointDiluted EPS increased 15.6% to $2.28.
  • Moderate pointNon-GAAP EBITDA increased 10.2% to $247.985 million.

Negative

  • None.

Filing Explained

For the reported fiscal 2027 first quarter, adjusted growth excludes deconversion effects and current-quarter acquisition impacts; adjusted operating-income growth also removes the prior-year gain on assets, so these adjusted rates are not GAAP growth rates.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
GAAP revenue $701.547 million Fiscal three months ended September 30, 2026; increased 8.8% from the prior-year quarter
GAAP operating income $207.071 million Fiscal three months ended September 30, 2026; increased 12.5% from the prior-year quarter
GAAP net income $160.412 million Fiscal three months ended September 30, 2026; increased 11.4% from the prior-year quarter
Diluted EPS $2.28 per diluted share Fiscal three months ended September 30, 2026; increased 15.6% from $1.97 in the prior-year quarter
Non-GAAP adjusted revenue $682.178 million Fiscal three months ended September 30, 2026; increased 7.2% from the prior-year quarter
Net cash from operating activities $161.253 million Fiscal three months ended September 30, 2026; compared with $120.590 million in the prior-year quarter
Fiscal 2027 GAAP revenue guidance $2.698 billion to $2.718 billion Full fiscal year; assumes no acquisitions or dispositions
Fiscal 2027 diluted EPS guidance $7.47 to $7.51 Full fiscal year; assumes no acquisitions or dispositions
non-GAAP adjusted revenue financial
"Total non-GAAP adjusted revenue increased 7.2%"
Revenue reported after a company removes or alters certain items that standard accounting rules would normally include, such as one-time gains or losses, currency effects, or contract adjustments. Investors use it as a clearer picture of the business’s recurring sales — like wiping mud off a window to see the view — but because companies choose which items to exclude, it can be subjective and should be compared with the standard accounting revenue for a balanced view.
deconversion revenue financial
"deconversion revenue of $17,918"
non-GAAP EBITDA financial
"NON-GAAP EBITDA increased 10.2%"
Non-GAAP EBITDA is a company's earnings before interest, taxes, depreciation and amortization that management adjusts by adding back or removing certain items that official accounting rules (GAAP) would normally include. Investors look at it to get a cleaner view of recurring operating performance—like checking a score after removing one-off events—but because companies decide which items to exclude, it can vary widely and should be evaluated alongside standard GAAP measures.
free cash flow conversion financial
"Free cash flow conversion is defined as free cash flow less proceeds"
Free cash flow conversion measures how effectively a company turns its reported profits into actual cash that can be used for growth, debt repayment, or dividends. It compares the cash generated after expenses to the company's net income, similar to how a person might compare their savings to their paycheck. High conversion indicates the company is efficient at translating profits into cash, which is important for investors assessing its financial health and flexibility.
NOPAT ROIC financial
"NOPAT ROIC is calculated by dividing NOPAT operating income by average invested capital"
GAAP revenue $701.547 million increased 8.8%
GAAP operating income $207.071 million increased 12.5%
GAAP net income $160.412 million increased 11.4%
Diluted EPS $2.28 per diluted share increased 15.6%
Guidance

Fiscal 2027 GAAP revenue of $2.698 billion to $2.718 billion and diluted EPS of $7.47 to $7.51; assumes no acquisitions or dispositions during the fiscal year.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much revenue did JKHY report for fiscal Q1 2027?
JKHY reported GAAP revenue of $701.547 million for the fiscal three months ended September 30, 2026, up 8.8% from $644.738 million in the prior-year quarter. Non-GAAP adjusted revenue was $682.178 million, up 7.2%.

What is JKHY's fiscal 2027 revenue and EPS guidance?
JKHY's fiscal 2027 GAAP revenue guidance is $2.698 billion to $2.718 billion, and diluted EPS guidance is $7.47 to $7.51. The full-year guidance assumes no acquisitions or dispositions during fiscal 2027.

How much stock did JKHY repurchase in fiscal Q1 2027?
Jack Henry repurchased $71 million of stock at an average price of $153.47 per share during the fiscal three months ended September 30, 2026.

How much operating cash flow and free cash flow did JKHY report?
Net cash from operating activities was $161.253 million, compared with $120.590 million in the prior-year quarter. Free cash flow, a non-GAAP measure, was $82.932 million, compared with $69.477 million.

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

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00007791522027Q1false00007791522026-11-032026-11-03

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 3, 2026
JACK HENRY & ASSOCIATES, INC.
(Exact name of Registrant as specified in its Charter)
Delaware0-1411243-1128385
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)

663 Highway 60, P.O. Box 807, Monett, MO 65708
(Address of Principal Executive Offices) (Zip Code)

417-235-6652
(Registrant’s telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a.-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13e-4(c))
Title of each classTicker symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par valueJKHYNasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐




Item 2.02
Results of Operations and Financial Condition.
On November 3, 2026, Jack Henry & Associates, Inc. issued a press release announcing fiscal 2027 first quarter results, the text of which is attached hereto as Exhibit 99.1.

Item 9.01
Financial Statements and Exhibits.
(d)    Exhibits    
    99.1     Press release dated November 3, 2026
104    Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
JACK HENRY & ASSOCIATES, INC.
(Registrant)
Date:November 3, 2026/s/ Mimi L. Carsley
Mimi L. Carsley
Chief Financial Officer and Treasurer


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Press Release
Mimi L. Carsley | Chief Financial Officer | mcarsley@jackhenry.com

FOR IMMEDIATE RELEASE
Jack Henry & Associates, Inc. Reports First Quarter Fiscal 2027 Results
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First quarter summary:
•GAAP revenue increased 8.8% and GAAP operating income increased 12.5% for the fiscal three months ended September 30, 2026, compared to the prior fiscal year quarter.
•Non-GAAP adjusted revenue increased 7.2% and non-GAAP adjusted operating income increased 11.2% for the fiscal three months ended September 30, 2026, compared to the prior fiscal year quarter.1
•GAAP EPS was $2.28 per diluted share for the fiscal three months ended September 30, 2026, compared to $1.97 per diluted share in the prior fiscal year quarter, representing growth of 15.6%.
•Cash and cash equivalents were $25.4 million at September 30, 2026, and $36.2 million at September 30, 2025.
•Debt outstanding for credit facilities was $85 million at September 30, 2026, and $20 million at September 30, 2025.
•Stock repurchases for the fiscal three months ended September 30, 2026, were $71 million at an average price of $153.47 per share.
Compared to the same period in the prior fiscal year:
First Qtr Revenue
First Qtr Operating Income
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GAAP
Non-GAAP1
GAAP
Non-GAAP1
increasedincreasedincreasedincreased
8.8%7.2%12.5%11.2%
First Qtr Net IncomeFirst Qtr EBITDA
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GAAP
Non-GAAP1
Non-GAAP2
increasedincreasedincreased
11.4%10.1%10.2%
Full year fiscal 2027 guidance (Dollars in millions, other than per share amounts):3
Current
GAAPLowHigh
Revenue$2,698$2,718
Operating margin4
24.7%24.9%
EPS$7.47$7.51
Non-GAAP5
Adjusted revenue$2,667$2,687
Adjusted operating margin24.1%24.3%
Monett, MO, November 3, 2026 - Jack Henry & Associates, Inc. (Nasdaq: JKHY), a leading financial technology provider, today announced results for fiscal first quarter ended September 30, 2026.
According to Greg Adelson, President and CEO, “We continued our positive momentum in the first quarter of fiscal 2027, delivering record financial results that exceeded the outlook we provided in August. The demand environment remains very strong, as reflected in our outstanding sales performance and robust pipeline. We are extremely pleased with the start of our fiscal year and based on improved revenue drivers, we again exceeded consensus expectations. We are confident in our ability to continue delivering consistent, long-term results through an unwavering commitment to culture, service, innovation, strategy, and execution.”
1 See tables below on page 4 reconciling non-GAAP financial measures to GAAP.
2See table below on page 13 reconciling net income to non-GAAP EBITDA.
3 The full fiscal year guidance assumes no acquisitions or dispositions will be made during fiscal year 2027.
4Operating margin is calculated by dividing operating income by revenue.
5See tables below on page 7 reconciling fiscal year 2027 GAAP to non-GAAP guidance.
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Operating Results
Revenue, operating expenses, operating income, and net income for the fiscal three months ended September 30, 2026, compared to the fiscal three months ended September 30, 2025, were as follows:
Revenue
(Unaudited, dollars in thousands)
Three Months Ended
September 30,		% Change
20262025
Revenue
Services and Support$404,961 $376,851 7.5 %
Percentage of Total Revenue57.7 %58.5 %
Processing296,586 267,887 10.7 %
Percentage of Total Revenue42.3 %41.5 %
REVENUE$701,547 $644,738 8.8 %
•Services and support revenue increased for the fiscal three months ended September 30, 2026, compared to the fiscal three months ended September 30, 2025, primarily driven by growth in hosting revenue of 11.7% as new and existing clients continue to migrate to our private cloud and processing volumes expand, an increase in deconversion revenue of $9,292, as well as an increase in software usage revenue of 9.9%, partially offset by the decrease in revenue related to the timing of our Connect conference, which was held in the first quarter of fiscal 2026 and the second quarter of 2027. Processing revenue increased for the fiscal three months ended September 30, 2026, compared to the fiscal three months ended September 30, 2025, mainly driven by growth in card revenue of 9.4% from monthly service and risk management fees, improvement in digital and transaction revenue of 13.3% from a higher number of active users on our digital platform and from the ramping up of additional products, as well as a rise in faster payments revenue of 43.8% from expanding transactional volumes.
•For the fiscal three months ended September 30, 2026, compared to the fiscal three months ended September 30, 2025, core segment revenue increased 7.1%, payments segment revenue increased 9.2%, complementary segment revenue increased 10.4%, and corporate services segment revenue increased 6.2%. For the fiscal three months ended September 30, 2026, compared to the fiscal three months ended September 30, 2025, core segment non-GAAP adjusted revenue increased 4.9%, payments segment non-GAAP adjusted revenue increased 8.3%, complementary segment non-GAAP adjusted revenue increased 8.4%, and corporate services non-GAAP adjusted segment revenue increased 5.2%. Total non-GAAP adjusted revenue increased 7.2% for the same comparative periods (see revenue lines of segment break-out tables on pages 5 and 6 below for a reconciliation of GAAP segment revenue to non-GAAP adjusted segment revenue).
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Operating Expenses and Operating Income
(Unaudited, dollars in thousands)Three Months Ended
September 30,		% Change
20262025
Cost of Revenue$376,046 $348,566 7.9 %
Percentage of Total Revenue6
53.6 %54.1 %
Research and Development45,781 39,278 16.6 %
Percentage of Total Revenue6
6.5 %6.1 %
Selling, General, and Administrative72,649 72,829 (0.2)%
Percentage of Total Revenue6
10.4 %11.3 %
OPERATING EXPENSES494,476 460,673 7.3 %
OPERATING INCOME$207,071 $184,065 12.5 %
Operating Margin6
29.5 %28.5 %
•Cost of revenue increased for the fiscal three months ended September 30, 2026, compared to the fiscal three months ended September 30, 2025, primarily due to higher personnel costs, including compensation and benefit costs, partly related to trailing twelve month headcount growth, higher direct costs generally consistent with increases in related lines of revenue, higher cloud consumption costs, including artificial intelligence and security costs, increased licenses and fees, including infrastructure costs, as well as higher amortization of intangibles, partially offset by the increase in labor cost deferral.
•Research and development expense increased for the fiscal three months ended September 30, 2026, compared to the fiscal three months ended September 30, 2025, primarily due to higher personnel costs (net of capitalization), including compensation and benefit costs, partly related to trailing twelve month headcount growth.
•Selling, general, and administrative expense decreased for the fiscal three months ended September 30, 2026, compared to the fiscal three months ended September 30, 2025, mainly due to lower expenses related to the timing of our Connect conference.

Net Income
(Unaudited, dollars in thousands,
except per share data)		Three Months Ended
September 30,		% Change
20262025
Income Before Income Taxes$210,635 $190,318 10.7 %
Provision for Income Taxes50,223 46,332 8.4 %
NET INCOME$160,412 $143,986 11.4 %
Diluted earnings per share$2.28 $1.97 15.6 %
•Effective tax rates for the fiscal three months ended September 30, 2026, and September 30, 2025, were 23.8% and 24.3%, respectively.




According to Mimi Carsley, CFO and Treasurer, “During the first quarter of the fiscal year, we delivered solid 7.2% non-GAAP revenue growth aided by key areas such as Cloud, Card, and Digital, with continued Faster Payments momentum. Revenue growth and leverage in our business model contributed to non-GAAP operating income margin of 28.2% and an outstanding ROIC of 23.2%”



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.
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Impact of Non-GAAP Adjustments
The tables below show our revenue, operating income, and net income for the fiscal three months ended September 30, 2026, compared to the fiscal three months ended September 30, 2025, excluding the impacts of deconversions and the effects of the prior fiscal year acquisition of Victor Technologies in the current fiscal quarter ended September 30, 2026, and the impacts of deconversions and the gain on assets, net, in the prior fiscal quarter ended September 30, 2025.

(Unaudited, dollars in thousands)
Three Months Ended September 30,% Change
20262025
GAAP Revenue*
$701,547 $644,738 8.8 %
Adjustments:
Deconversion revenue(17,918)(8,626)
Revenue from the acquisition
(1,451)— 
NON-GAAP ADJUSTED REVENUE*
$682,178 $636,112 7.2 %
GAAP Operating Income$207,071 $184,065 12.5 %
Adjustments:
Operating income from deconversions
(15,199)(7,101)
Gain on assets, net
— (3,796)
Operating loss from the acquisition759 — 
NON-GAAP ADJUSTED OPERATING INCOME$192,631 $173,168 11.2 %
Non-GAAP Adjusted Operating Margin**
28.2 %27.2 %
GAAP Net Income$160,412 $143,986 11.4 %
Adjustments:***
Net income from deconversions
(15,199)(7,101)
Gain on assets, net
— (3,796)
Net loss from the acquisition759 — 
Tax impact of adjustments3,466 2,615 
NON-GAAP ADJUSTED NET INCOME$149,438 $135,704 10.1 %
*GAAP revenue is comprised of services and support and processing revenues (see page 2). Services and support revenue less deconversion revenue for the fiscal three months ended September 30, 2026, and 2025, which was $17,918 for the current fiscal year quarter and $8,626 for the prior fiscal year quarter, results in non-GAAP adjusted services and support revenue growth of 5.1% compared to the prior fiscal year quarter. Processing revenue less revenue excluding the effects of a prior year acquisition for the fiscal three months ended September 30, 2026, of $1,451, results in non-GAAP adjusted processing revenue growth of 10.2% compared to the prior fiscal year quarter.
**Non-GAAP adjusted operating margin is calculated by dividing non-GAAP adjusted operating income by non-GAAP adjusted revenue.
***The non-GAAP net income adjustments below are first listed before tax and then the tax impact is presented as a combined tax impact of all adjustments. The tax impact of adjustments is calculated using a tax rate of 24% for the fiscal three months ended September 30, 2026, and 2025. The tax rate for non-GAAP adjustment items takes a broad look at the Company's recurring tax adjustments and applies them to non-GAAP revenue that does not have its own specific tax impacts.
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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 September 30, 2026
(Unaudited, dollars in thousands)
CorePaymentsComplementary
Corporate Services
Total
GAAP REVENUE$203,411 $252,111 $220,176 $25,849 $701,547 
Non-GAAP adjustments*(7,411)(5,764)(5,905)(289)(19,369)
NON-GAAP ADJUSTED REVENUE196,000 246,347 214,271 25,560 682,178 
GAAP COST OF REVENUE76,204 125,318 74,776 99,748 376,046 
Non-GAAP adjustments*(888)(1,591)(446)(114)(3,039)
NON-GAAP ADJUSTED COST OF REVENUE75,316 123,727 74,330 99,634 373,007 
GAAP SEGMENT INCOME$127,207 $126,793 $145,400 $(73,899)
Segment Income Margin**62.5 %50.3 %66.0 %(285.9)%
NON-GAAP ADJUSTED SEGMENT INCOME$120,684 $122,620 $139,941 $(74,074)
Non-GAAP Adjusted Segment Income Margin**
61.6 %49.8 %65.3 %(289.8)%
Research and Development45,781 
Selling, General, and Administrative72,649 
Non-GAAP adjustments unassigned to a segment***(1,890)
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES489,547 
NON-GAAP ADJUSTED OPERATING INCOME$192,631 
*Revenue non-GAAP adjustments for the Payments segment were ($1,451) of revenue related to the acquired company and ($4,313) 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 ($1,427) of costs related to the acquired company and ($164) of deconversion costs. Cost of revenue non-GAAP adjustments for the Corporate Services segment were ($105) of costs related to the acquired company and ($9) 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 $1,212, research and development costs related to the acquired company of $658, and selling, general, and administrative costs related to the acquired company of $20.
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Three Months Ended September 30, 2025
(Unaudited, dollars in thousands)
CorePaymentsComplementary
Corporate Services
Total
GAAP REVENUE$190,001 $230,894 $199,509 $24,334 $644,738 
Non-GAAP adjustments*(3,219)(3,483)(1,876)(48)(8,626)
NON-GAAP ADJUSTED REVENUE186,782 227,411 197,633 24,286 636,112 
GAAP COST OF REVENUE71,634 118,660 73,006 85,266 348,566 
Non-GAAP adjustments*(443)(151)(308)(2)(904)
NON-GAAP ADJUSTED COST OF REVENUE71,191 118,509 72,698 85,264 347,662 
GAAP SEGMENT INCOME$118,367 $112,234 $126,503 $(60,932)
Segment Income Margin**
62.3 %48.6 %63.4 %(250.4)%
NON-GAAP ADJUSTED SEGMENT INCOME$115,591 $108,902 $124,935 $(60,978)
Non-GAAP Adjusted Segment Income Margin61.9 %47.9 %63.2 %(251.1)%
Research and Development39,278 
Selling, General, and Administrative72,829 
Non-GAAP adjustments unassigned to a segment***
3,175 
NON-GAAP TOTAL ADJUSTED OPERATING EXPENSES462,944 
NON-GAAP ADJUSTED OPERATING INCOME$173,168 
*Revenue non-GAAP adjustments for the segments were deconversion revenue. Cost of revenue non-GAAP adjustments for 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 $3,796 less deconversion costs of $621.



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The table below shows our GAAP to non-GAAP guidance for the fiscal year ending June 30, 2027. Fiscal year 2027 non-GAAP guidance excludes the impacts of deconversion revenue and related operating expenses, acquisition revenues and related operating expenses, 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'27Adjusted for FY'27 Comparison
Reported
Change (Acquisition)
LowHighFY26FY26FY26
GAAP REVENUE$2,698 $2,718 $2,544 $2,544 $— 
     Growth6.0 %6.8 %
Deconversions*
30 30 43 43 — 
Acquisition
1 1 — 5 (5)
NON-GAAP ADJUSTED REVENUE**
$2,667 $2,687 $2,502 $2,496 $5 
     Non-GAAP Adjusted Growth6.6 %7.4 %
GAAP OPERATING EXPENSES$2,033 $2,043 $1,909 $1,909 $— 
     Growth6.5 %7.0 %
Deconversion costs*
7 7 13 13 — 
Acquisition costs
2 2 — 8 (8)
Gain on assets, net
— — (7)(7)— 
NON-GAAP ADJUSTED OPERATING EXPENSES**
$2,024 $2,033 $1,903 $1,895 $8 
     Non-GAAP Adjusted Growth6.3 %6.8 %
GAAP OPERATING INCOME$665 $676 $635 $635 $— 
     Growth4.8 %6.4 %
GAAP OPERATING MARGIN24.7 %24.9 %25.0 %25.0 %
NON-GAAP ADJUSTED OPERATING INCOME**
$643 $653 $598 $601 $(3)
     Non-GAAP Adjusted Growth7.5 %9.2 %
NON-GAAP ADJUSTED OPERATING MARGIN24.1 %24.3 %23.9 %24.1 %
GAAP EPS
$7.47 $7.51 $6.98 $6.98 $— 
     Growth7.1 %7.6 %
*Deconversion revenue and related operating expenses are based on actual results for the fiscal three months ended September 30, 2026, and estimates for the remainder of the fiscal year 2027. See the Company’s Form 8-K filed with the Securities and Exchange Commission on October 29, 2026.
**GAAP to Non-GAAP revenue, operating expenses, and operating income may not foot due to rounding.

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Balance Sheet and Cash Flow Review
chart-452a8ea74d024fb0a85a.jpg    chart-633d39d2930c4ef7be4a.jpgchart-64281f9ab2b141b2a6ea.jpg    chart-c7c17cc88f4e4d60b0da.jpg    
•Cash and cash equivalents were $25 million at September 30, 2026, compared to $36 million at September 30, 2025.
•Trade receivables were $346 million at September 30, 2026, and $308 million at September 30, 2025.
•The Company had $85 million of borrowings at September 30, 2026, compared to $20 million of borrowings at September 30, 2025.
•Deferred revenue was $333 million at September 30, 2026, compared to $321 million at September 30, 2025.
•Stockholders' equity decreased to $2,100 million at September 30, 2026, compared to $2,173 million at September 30, 2025.
*See table below for Net Cash From Operating Activities and on page 13 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 13 and 14. 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, dollars in thousands)Three Months Ended September 30,
20262025
Net income$160,412 $143,986 
Depreciation11,245 10,434 
Amortization44,593 41,458 
Change in deferred income taxes11,354 38,987 
Other non-cash expenses4,578 2,510 
Change in receivables3,288 12,196 
Change in deferred revenue(39,724)(42,291)
Change in other assets and liabilities*
(34,493)(86,690)
NET CASH FROM OPERATING ACTIVITIES$161,253 $120,590 
*For the fiscal three months ended September 30, 2026, the change in other assets and liabilities includes the change in accrued expenses of $(34,551), the change in prepaid expenses, deferred costs and other of $(31,640), and the change in accounts payable of $(4,123), partially offset by the change in income taxes of $35,821. For the fiscal three months ended September 30, 2025, the change in other assets and liabilities includes the change in accrued expenses of $(36,567), the change in prepaid expenses, deferred costs and other of $(34,336), the change in income taxes of $(9,150), and the change in accounts payable of $(6,637).
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The following table summarizes net cash from investing activities:
(Unaudited, dollars in thousands)Three Months Ended September 30,
20262025
Payment for acquisitions
$— $(42,390)
Capital expenditures(26,960)(8,880)
Proceeds from sale of assets
— 7,479 
Purchased software(1,577)(1,509)
Computer software developed(49,784)(48,203)
Purchase of investments(1,000)(6,000)
Proceeds from investments4,000 1,000 
NET CASH FROM INVESTING ACTIVITIES$(75,321)$(98,503)

The following table summarizes net cash from financing activities:
(Unaudited, dollars in thousands)Three Months Ended September 30,
20262025
Borrowings on credit facilities
$188,000 $20,000 
Repayments on credit facilities
(143,000)— 
Purchase of treasury stock(70,903)(62,045)
Dividends paid(42,768)(42,145)
Net cash from issuance of stock and tax related to stock-based compensation(3,961)(3,611)
NET CASH FROM FINANCING ACTIVITIES$(72,632)$(87,801)













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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, free cash flow conversion, net operating profit after tax return on invested capital (NOPAT ROIC), and non-GAAP adjusted net income. We also present key revenue, which is the sum of cloud services revenue and processing revenue, and non-key revenue, which is all other GAAP revenue. Key revenue and non-key revenue are components of GAAP revenue and are presented because management views key revenue as the strategic recurring revenue of the business most important for long-term growth.
We believe non-GAAP financial measures help investors better understand the underlying fundamentals and operating performance of our business. Adjusted revenue, adjusted segment revenue, adjusted operating income, adjusted operating margin, adjusted segment income, adjusted segment income margin, adjusted cost of revenue, adjusted segment cost of revenue, adjusted operating expenses, and adjusted net income eliminate deconversion revenue and associated costs, the gain on assets, net, and an acquisition, which management believes are not indicative of the Company's operating performance. Such adjustments give investors further insight into our performance. Non-GAAP EBITDA is defined as net income attributable to the Company before the effect of interest income, net, taxes, depreciation, and amortization, adjusted for net income before the effect of interest income, net, taxes, depreciation, and amortization attributable to eliminated deconversions, the gain on assets, net, and an acquisition. 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). Free cash flow conversion is defined as free cash flow, less proceeds from sale of assets, divided by net income. 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 does not consider indicative of the Company's ongoing operating performance; 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; free cash flow conversion is useful to measure the efficiency with which operating results are converted into free cash flow; 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.

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About Jack Henry & Associates, Inc.®
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Quarterly Conference Call
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 7,200 clients with people-inspired innovation, personal service, and insight-driven solutions that help reduce the barriers to financial health. Additional information is available at www.jackhenry.com.
The Company will hold a conference call on November 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.
Statements made in this news release that are not historical facts, including the Company's fiscal 2027 guidance and statements regarding future performance, 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.
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MEDIA CONTACT
Jeremy Elwood
Corporate Communications
Jack Henry & Associates, Inc.
417-235-6652
JDElwood@jackhenry.com
ANALYST CONTACT
Vance Sherard, CFA
Investor Relations
Jack Henry & Associates, Inc.
417-235-6652
VSherard@jackhenry.com
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Consolidated Statements of Income (Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended September 30,% Change
20262025
REVENUE$701,547 $644,738 8.8 %
Cost of Revenue376,046 348,566 7.9 %
Research and Development45,781 39,278 16.6 %
Selling, General, and Administrative72,649 72,829 (0.2)%
EXPENSES494,476 460,673 7.3 %
OPERATING INCOME207,071 184,065 12.5 %
Interest income5,092 7,139 (28.7)%
Interest expense(1,528)(886)72.5 %
Interest Income, net
3,564 6,253 (43.0)%
INCOME BEFORE INCOME TAXES210,635 190,318 10.7 %
Provision for Income Taxes50,223 46,332 8.4 %
NET INCOME$160,412 $143,986 11.4 %
Diluted net income per share$2.28 $1.97 
Diluted weighted average shares outstanding70,262 72,909 
Consolidated Balance Sheet Highlights (Unaudited)
(Dollars in thousands)September 30,% Change
20262025
Cash and cash equivalents$25,356 $36,239 (30.0)%
Receivables345,823 307,647 12.4 %
Total assets3,194,748 3,047,572 4.8 %
Accounts payable and accrued expenses$247,007 $190,667 29.5 %
Debt85,000 20,000 325.0 %
Deferred revenue332,747 321,082 3.6 %
Stockholders' equity2,099,643 2,173,334 (3.4)%
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Calculation of Non-GAAP Earnings Before Interest Income, Net, Income Taxes, Depreciation and Amortization (Non-GAAP EBITDA)
Three Months Ended September 30,% Change
(Dollars in thousands)20262025
Net income$160,412 $143,986 
Net interest(3,564)(6,253)
Taxes50,223 46,331 
Depreciation and amortization55,839 51,892 
Less: Net income before interest expense, taxes, depreciation and amortization attributable to eliminated non-GAAP adjustments*(14,925)(10,897)
NON-GAAP EBITDA$247,985 $225,059 10.2 %
*The fiscal first quarter 2027 and 2026 adjustments for net income before interest expense, taxes, depreciation and amortization were for deconversions of ($15,199) and an acquisition of $274, and were for deconversions of ($7,101) and a gain on assets, net, of ($3,796), respectively.
Calculation of Free Cash Flow (Non-GAAP)Three Months Ended September 30,
(Dollars in thousands)20262025
Net cash from operating activities$161,253 $120,590 
Capitalized expenditures(26,960)(8,880)
Internal use software(1,577)(1,509)
Proceeds from sale of assets— 7,479 
Capitalized software(49,784)(48,203)
FREE CASH FLOW$82,932 $69,477 
Net income$160,412 $143,986 
Operating cash conversion*
100.5%83.8%
Free cash flow conversion (excluding proceeds from sale of assets)*
51.7%43.1%
*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 $0 for the fiscal three months ended September 30, 2026, and $7,479 for the three months ended September 30, 2025, divided by net income.
Calculation of the Return on Average Stockholders’ Equity
September 30,
(Dollars in thousands)20262025
Net income (trailing four quarters)$519,202 $480,543 
Average stockholders' equity (period beginning and ending balances)2,136,489 2,049,181 
RETURN ON AVERAGE STOCKHOLDERS’ EQUITY
24.3%23.5%
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Calculation of NOPAT ROIC (Non-GAAP)
September 30,
(Dollars in thousands)20262025
Operating income (trailing four quarters)
$658,039 $601,504 
Average Effective Tax Rate (trailing four quarters)
22.7%22.4%
NOPAT operating income (trailing four quarters)*
508,664 466,767 
Average stockholders' equity (period beginning and ending balances)2,136,489 2,049,181 
Average current maturities of long-term debt (period beginning and ending balances)— 45,000 
Average long-term debt (period beginning and ending balances)52,500 35,000 
Average invested capital (period beginning and ending balances)
2,188,989 2,129,181 
NOPAT ROIC
23.2%21.9%
*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).
Reconciliation of Key and Non-Key RevenueThree Months Ended September 30,% Change
(Dollars in thousands)20262025
GAAP REVENUE$701,547 $644,738 8.8 %
Cloud Services217,701 195,609 11.3 %
Percentage of Total Revenue*31.0 %30.3 %
Processing296,586 267,887 10.7 %
Percentage of Total Revenue*42.3 %41.5 %
KEY REVENUE$514,287 $463,496 11.0 %
Percentage of Total Revenue*73.3 %71.9 %
NON-KEY REVENUE$187,260 $181,242 3.3 %
Percentage of Total Revenue*26.7 %28.1 %
*Key and non-key revenue components as a percentage of total revenue may not equal 100% due to rounding.













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FAQ for Analysts / Investors
(Dollars in thousands)
1.Why does Core segment revenue growth appear to have moderated this quarter?
•The current quarter is being compared against a prior year period that included elevated one-time revenues from on-premise implementations and consulting engagements. Excluding those one-time items, growth in key recurring areas of the Core segment grew 8.6%, which is a positive indicator of the ongoing strength of the segment.
2.    Why did the Company rename "Public and Private Cloud" revenue to "Cloud Services"?
•The Company made this change beginning in the first quarter of fiscal 2027 to simplify presentation and improve clarity. This does not represent any change to the products or services we offer or to previously reported financial results, and prior period amounts are presented on a consistent basis.
3.    What were the first quarter of fiscal 2026 segment reclassifications?
•During the first quarter of fiscal 2027, the Company transferred a product from the Core segment to the Complementary segment for better alignment. Therefore, first quarter of fiscal 2026 results were recast. Revenue of $5,292 and cost of revenue of $746 were reclassified. Other reclassifications unrelated to the product transfer noted above were $757 of cost of revenue reclassified from Core to Corporate Services to align with current allocation of cost of revenue by segment. These changes are segment-level only and do not affect consolidated results.
4.    What is the timing of the Connect Conference?
•The Connect Conference is Jack Henry's annual client conference. The revenue and expenses associated with the conference are included in the Corporate Services segment. The event was held in the first quarter of fiscal 2026 and is in the the second quarter of fiscal 2027. The event will be held in the second quarter for the next four years.
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