# Jack Henry & Associates Inc. (JKHY) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-18  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/JKHY/thesis · /stocks/JKHY/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/JKHY/fundamental

## Navigation

- Overview: /stocks/JKHY
- Financials (this page): /stocks/JKHY/financials
- Thesis: /stocks/JKHY/thesis
- Investment Memo: /stocks/JKHY/memo
- Coverage universe: /stocks