Jack Henry Revenue Rises 8.8% to $701.547 Million in First Quarter
Key Facts
Jack Henry said on November 3 that GAAP revenue totaled $701.547 million in the fiscal first quarter ended September 30, 2026, up 8.8% from $644.738 million in the same period a year earlier. CEO Greg Adelson said the company delivered record financial results that exceeded the expectations it provided in August. He added that the demand environment remained strong, citing the company's sales and pipeline of opportunities. Jack Henry said it again exceeded consensus expectations. The quarter marked the start of the company's fiscal 2027, and it raised its full-year outlook following the strong start.
GAAP operating income rose 12.5% to $207.071 million, compared with $184.065 million in the corresponding quarter of the prior fiscal year. Diluted earnings per share were $2.28, compared with $1.97 a year earlier, an increase of 15.6%. Operating income and earnings per share grew faster than reported GAAP revenue. On a non-GAAP adjusted basis, revenue rose 7.2% and operating income increased 11.2% year over year. The adjusted metrics provide a parallel comparison of the period's results alongside figures calculated under generally accepted accounting principles.
Revenue growth came from the Services and Support and Processing segments, according to the company statement. Services and Support revenue was $404.961 million, up 7.5% year over year, while Processing generated $296.586 million, an increase of 10.7%. Processing was the faster-growing of the two segments, while Services and Support accounted for the larger share of quarterly revenue. These figures show that the overall increase did not depend on a single source, but included both customer-facing services and processing business. The company linked growth in several of these activities to higher usage and transaction volumes.
Jack Henry said hosted revenue rose 11.7% and software usage revenue grew 9.9% during the quarter year over year, helping support Services and Support. In payments, faster payments processing revenue increased 43.8% as transaction volumes expanded, the highest growth rate among the operating metrics the company reported. Card revenue also rose 9.4%, while digital and transaction revenue grew 13.3%. These increases span hosted services and software, as well as payments, cards and digital channels. The company described faster payments growth as linked to expanding transaction volumes, without providing a figure for those volumes.
Quarterly revenue included $17.9 million in conversion fees generated when customers leave, based on the company's published estimate for this activity. Jack Henry estimated full-year fiscal 2027 conversion revenue at $30 million based on first-quarter results. It explained that most of this revenue arises when one of its customers agrees to be acquired by another financial institution, resulting in the termination of the contractual relationship. The company said this income is affected by factors outside its control and does not reflect its ongoing operations. This clarification places conversion revenue separately from the growth in services, processing and payments the company reported for the period.
The company raised its guidance for fiscal 2027, which ends June 30, 2027, to GAAP revenue of between $2.698 billion and $2.718 billion, and earnings per share of between $7.47 and $7.51. The guidance range assumes no acquisitions or dispositions during the fiscal year. Before reporting results, the company said adjusted revenue growth for the year would remain consistent, but noted that margin comparisons would face a difficult base in the first half because of tough comparisons with the prior year's first half. The new outlook sets an annual range for revenue and earnings per share following the first-quarter results, while quarterly margin comparisons remain within the context the company had previously outlined.
Jack Henry shares, listed under the ticker JKHY, closed at $163.42 on November 2, according to EL7 data, before the results were announced on November 3. The company invited investors to a conference to discuss first-quarter results on November 4, 2026, at 7:45 a.m. Central Time. The conference is scheduled to provide a review of results and fiscal-year outlook the day after the announcement. It follows the company's increase to its annual revenue and earnings-per-share ranges and the CEO's affirmation of strong demand and results that exceeded August expectations. The cited closing price applies specifically to the November 2 session.