Jack Henry & Associates Q1 Earnings Beat Estimates, Revenues Rise Y/Y

Jack Henry & Associates (JKHY) reported first-quarter fiscal 2026 GAAP earnings of $1.97 per share, beating the Zacks Consensus Estimate by 20.1%. The figure jumped 20.9% year over year.

Jack Henry & Associates’ revenues of $644.7 million beat the Zacks Consensus Estimate by 1.2%. The figure increased 7.3% year over year.

After adjusting for deconversion revenues of $8.6 million, non-GAAP revenues were $636.1 million, up 8.7% year over year.

Following the release, JKHY shares fell 1.50% in the after-market trading hours. However, shares of Jack Henry & Associates have lost 13% in the year-to-date period compared with the Zacks Computers - IT Services industry’s decline of 14.4%.

Jack Henry & Associates, Inc. Price, Consensus and EPS Surprise

Jack Henry & Associates, Inc. price-consensus-eps-surprise-chart | Jack Henry & Associates, Inc. Quote

JKHY’s Q1 Top-Line Details

Revenues from Services and Support (58.5% of total revenues) were $376.8 million, up 5.7% year over year, primarily driven by growth in data processing and hosting revenues. The figure missed the consensus mark of $379 million.

First-quarter fiscal 2025 revenues from Processing (41.5% of total revenues) were $267.9 million, up 9.7% year over year, primarily driven by growth in card, transaction and digital, and payment processing revenues. The figure surpassed the consensus mark of $257 million.

Revenues from Core segments (30.3% of total revenues) in the first quarter of fiscal 2025 were $195.3 million, up 0.5% year over year. Revenues from Payments (35.8% of total revenues) were $230.9 million, which rose 9% year over year. Revenues from Complementary (30.1% of total revenues) were $194.2 million, up 10.2% year over year.

Revenues from Corporate and Other (3.8% of total revenues) were $24.3 million, up 31.6% year over year.

JKHY’s fiscal first-quarter adjusted EBITDA was $225 million, up 14.6% year over year. The adjusted EBITDA margin expanded 220 basis points (bps) year over year to 34.9%.

Adjusted operating income increased 18.6% year over year to $173.2 million. The adjusted operating margin increased 220 bps year over year to 27.2%.

Jack Henry & Associates’ Balance Sheet & Cash Flow

As of Sept. 30, 2025, JKHY’s cash and cash equivalents were $36.2 million compared with $102 million as of June 30, 2025.

JKHY Updates 2026 Guidance

For fiscal 2026, Jack Henry & Associates updated its GAAP revenue guidance to $2.51-$2.49 billion, up from its previous guidance of $2.50-$2.48 billion.

JKHY expects non-GAAP revenues of $2.48-$2.46 billion compared with its previous guidance of $2.48-$2.45 billion for fiscal 2026.

The Zacks Consensus Estimate for revenues is pegged at $2.49 billion, suggesting a year-over-year rise of 4.9%.

The GAAP operating margin is anticipated between 24.1% and 23.9% compared with its previous guidance of 24.2-24%. The adjusted operating margin is expected to be between 23.7% and 23.5%, up from the previous guidance of 23.6-23.4%.

Management expects GAAP earnings in the range of $6.49-$6.38, up from its previous guidance of $6.44-$6.32 per share for fiscal 2026.

The Zacks Consensus Estimate for earnings is pegged at $6.22 per share, indicating a year-over-year decrease of 0.3%.

Zacks Rank & Other Stocks to Consider

Currently, JKHY carries a Zacks Rank #2 (Buy).

Reddit Inc. (RDDT), Credo Technology Group (CRDO) and Amphenol (APH) are some other top-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Impinj, Credo Technology Group and Amphenol sport a Zacks Rank #1 (Strong Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Reddit Inc.’s full-year 2025 earnings is pegged at $2.01 per share, revised upward by 6.9% over the past seven days and suggests a year-over-year increase of 160.4%. Reddit shares have soared 14.9% year to date.

The Zacks Consensus Estimate for Credo Technology Group’s fiscal 2026 earnings has been revised upward by a cent over the past 30 days to $2.04 per share, calling for an increase of 191.4% year over year. Credo Technology Group shares have rallied 144.3% year to date.

The Zacks Consensus Estimate for Amphenol’s full-year 2025 earnings has been revised upward to $3.22 per share from $3.03 per share over the past 30 days, implying 70.4% year-over-year growth. Amphenol shares have risen 96.8% year to date.

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