Jack Henry & Associates Inc.

JKHY
Financial Analysis · Updated May 18, 2026 · Coverage 2026-Q2
Latest Q Revenue
$636.3M
Q3 FY2026 · +8.7% YoY
TTM ROIC
20.8%
FY2025 · NOPAT / Capital Employed (Total Assets minus non-interest-bearing current liabilities); NOPAT = Operating Income × (1 - tax rate) · WACC ~8.5% · Moat spread +11.5pp

Financial Snapshot

ticker: JKHY step: 04 generated: 2026-05-13 source: quick-research

Jack Henry & Associates, Inc. (JKHY) — Financial Snapshot

Note: Jack Henry's fiscal year ends June 30.

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue ~$1.94B $2.078B $2.216B +6.6%
Operating Margin ~22% 22.7% 23.3% expanding
GAAP Net Income ~$0.39B ~$0.42B ~$0.46B growing
GAAP EPS ~$5.30 ~$5.70 ~$6.20 growing

Q1 FY2026 (ended Sep 30, 2025): Revenue $644.7M (+7.3% YoY); GAAP EPS $1.97 (beat $1.64 estimate — 20% beat); operating margin 27.2% (expanded significantly from 23.3% — cloud migration efficiencies). Consecutive quarters of margin expansion signal cloud transition is delivering. Raymond James upgraded to Strong Buy at $198 citing competitor consolidation opportunity. FY2025 (ended June 30, 2025): approximately $2.37B+ revenue at 7% growth.

Cash Flow & Balance Sheet (FY2024)

Metric Value
Free Cash Flow $511M (+38% YoY)
FCF Margin ~23%
Cash & Equivalents ~$400M
Total Debt ~$700–800M (modest leverage)
Operating Cash Flow ~$650–700M

FCF declined in FY2023 due to tax code changes (R&D capitalization requirement eliminated immediate deduction of software development expenses) and reduced deconversion fees. FCF recovered +38% in FY2024 as these headwinds normalized. FCF conversion is targeting recovery to 85–90%+ of net income. Debt is modest (~0.8x EBITDA) — Jack Henry runs a conservative balance sheet with occasional buybacks and dividends.

Key Ratios (approximate)

  • P/E: ~27x (FY2026 estimates) | EV/EBITDA: ~20x | FCF Yield: ~4–5%
  • Revenue Growth (TTM): ~7% | Operating Margin: ~23–27% (expanding)

Growth Profile

Jack Henry is a slow-but-steady compounder: 7% annual revenue growth for a decade, driven by pricing + volume + cross-sell. The cloud migration to "The Jack Henry Platform" is accelerating operating margin from ~23% toward 27%+ as on-premise software maintenance costs (data centers, hardware, manual processes) convert to cloud-native efficiencies. Q1 FY2026's 27.2% operating margin was a significant jump — suggesting margin expansion is real and potentially faster than consensus expected.

Forward Estimates

  • FY2025 (ended Jun 2025): Revenue ~$2.37B (+7% YoY); FCF ~$550–600M
  • FY2026 (ending Jun 2026): Revenue ~$2.55B (+7%); EPS ~$6.90–7.10
  • Analyst consensus PT: ~$185–188 (24 analysts; 4 Buy / 11 Hold / 0 Sell; majority Hold)
  • Bull case PT: $198–220 (Raymond James, Wolfe Research)
  • Bear PT: $155 (Wells Fargo)

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $JKHY.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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