| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 43 | 23.1x | 17.8x | Around median | |
Growth | 64 | 5.1% | 7.1% | Around median | |
Quality | 86 | 21.3% | 4.5% | Top tier | |
Safety | 94 | 0.0x | 2.6x | Top tier | |
Capital Return | 63 | — | 2.12% | Around median | |
Momentum | 52 | -3.8% | 2.9% | Around median | |
Sentiment | 83 | 10 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Jack Henry & Associates provides technology solutions to banks and credit unions through core banking processing systems, payments, digital services, financial crime prevention tools, and treasury management. The revenue model relies heavily on recurring business; in fiscal Q4 2026, recurring revenue accounted for 91% of the total, while processing revenue represented 44% and public and private cloud revenue represented 32%. The Jack Henry cloud platform connects the company’s core systems with products such as Banno, Financial Crimes Defender, and Rapid Transfers, supporting the sale of multiple solutions to a single financial institution.
In fiscal Q4 2026, non-GAAP revenue reached approximately $633 million, up 7% year over year, while GAAP revenue grew 5%. Non-GAAP operating margin was approximately 21%, but GAAP diluted earnings per share declined 10% to $1.57, from $1.75, as GAAP cost of revenue rose 8%, research and development expenses increased 17%, and selling, general, and administrative expenses increased 19%. By segment, non-GAAP revenue for Core, Payments, and Complementary each grew 6%, while Corporate Services revenue grew 31%, supported by hardware sales.
In fiscal 2026, the company recorded non-GAAP revenue of $2.5 billion, up 7%, and a non-GAAP operating margin of 24% after expanding by 92 basis points. GAAP earnings per share reached $6.98, up 12%, and free cash flow increased 31% to $539 million, while after-tax return on invested capital reached 23% versus 21% in the previous year. The company repurchased $448 million of shares, reducing shares outstanding by 4%, paid $170 million in dividends, and ended the quarter with $40 million of debt.
The analyst consensus on JKHY stock is “Buy,” with an average price target of $187.88 and a wide range between $170 and $215. The average target is below the 52-week range high of $193.39, while the highest target exceeds that high, reflecting positive but varied expectations regarding the conversion of Core wins and digital products into earnings growth. In contrast, the 10% decline in fiscal Q4 2026 earnings per share and fiscal 2027 margin pressures remain factors that should be weighed against the positive consensus.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
The company targets GAAP revenue growth of between 5.5% and 6.5% in fiscal 2027 and non-GAAP growth of between 6.3% and 7.3%. This is supported by the fiscal 2026 record of 58 competitive Core wins, with management expecting 58 to 65 wins in fiscal 2027. Drivers also include growth in Banno, faster payments, and Financial Crimes Defender, and an increase in the share of three-part deals to 59% of Core wins.
GAAP revenue grew 5% in fiscal Q4 2026, and non-GAAP revenue reached approximately $633 million, up 7%. However, GAAP cost of revenue increased 8%, research and development expenses rose 17%, and selling, general, and administrative expenses increased 19%. As a result, GAAP diluted earnings per share declined 10% to $1.57, despite the non-GAAP operating margin remaining at 21%.
Jack Henry signed a contract with Woodforest National Bank in fiscal Q4 2026, and the bank has $9.2 billion in assets. Management described Woodforest as the largest new bank client in the company’s history, and it was one of 15 competitive Core wins during the quarter. The deal supports the strategy of expanding into larger institutions, but management explained that new Core contracts typically take between 15 and 24 months to go live, so full revenue recognition is delayed.
Automated analysis for informational purposes only — not investment advice.
The company had 22 AI-powered products in the market as of the August 19, 2026 call and identified more than 20 additional capabilities for launch during the six months following the call. Financial Crimes Defender uses artificial intelligence to prepare draft suspicious activity report summaries, potentially reducing drafting time by 75% to 85% while keeping the investigator responsible for review. Banno Conversations also translates more than 200 languages, and Synapsys generates customer relationship summaries and next-step guidance.
Operating cash flow in fiscal Q4 2026 was approximately $303 million, down 7%, while quarterly free cash flow declined 10% to $245 million due to lower contract termination revenue. For fiscal 2026, free cash flow increased 31% to $539 million, and after-tax return on invested capital reached 23%. The company used its liquidity to repurchase $448 million of shares and pay $170 million in dividends, ending the quarter with $40 million of debt.
Management expects fiscal Q1 2027 growth to fall below the lower end of full-year non-GAAP revenue growth guidance, affected by approximately one percentage point from moving the Connect conference to Q2. Medical, cybersecurity, infrastructure, AI model, and EC2030 project costs are also pressuring margins, explaining the guidance for margin expansion of between 20 and 40 basis points. In addition, new Core contracts typically take between 15 and 24 months to implement, and Payments segment growth was slightly below its historical pace during the two years ended fiscal 2026.
