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Jack Henry & Associates (JKHY) FY2026 results: revenue $2.5 billion, up 7.1% on the year

Jack Henry & Associates Inc. (JKHY) reported revenue of $2.5 billion for fiscal 2026, the year ended 30 June 2026, up 7.1% on the year before. Net income was $503 million, up 10.3%, and diluted earnings per share $6.98. The figures are the company's own, from the 10-K it filed with the SEC on 28 August 2026.

Revenue
$2.5 billion
+7.1% on the year
FY2019FY2026
Operating margin
25.0%
23.9% a year earlier
FY2019FY2026
Net income
$503 million
+10.3% on the year
FY2019FY2026
Diluted EPS
$6.98
+11.9% on the year
FY2019FY2026

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

  • Fourth-quarter revenue rose, operating income fell: GAAP revenue rose 4.7% to $644.0 million in the fourth quarter and GAAP operating income fell 12.2% to $136.8 million; diluted EPS was $1.57, against $1.75.
  • Full-year revenue and operating income grew: For fiscal 2026, GAAP revenue rose 7.1% to $2,544.3 million, GAAP operating income rose 11.7% to $635.0 million, and diluted EPS was $6.98, up 11.9%.
  • Fourth-quarter operating margin fell: Operating margin was 21.2% in the fourth quarter against 25.3%, and non-GAAP adjusted operating margin was 21.1% against 23.2%.
  • Competitive core wins for fiscal 2026: Management reported 58 competitive core wins for the year, including 14 institutions with more than $1 billion in assets.
  • Free cash flow rose to $539.3 million: Free cash flow for fiscal 2026 was $539.3 million against $410.3 million; operating cash conversion was 151.6% against 140.8%.
Read the Q4 FY2026 earnings call summary

From this 10-K

Jack Henry & Associates sells the software that community and regional banks and credit unions run on: the core system that processes deposit, loan and general ledger transactions, plus payments, digital banking and a long list of complementary products. Founded in 1976 and 50 years in business, it serves over 7,200 financial institutions and corporate entities. Operations are classified into four reportable segments: Core, Payments, Complementary and Corporate Services.

Jack Henry & Associates Inc., the 10-K for 2026

Jack Henry & Associates sells the software that community and regional banks and credit unions run on: the core system that processes deposit, loan and general ledger transactions, plus payments, digital banking and a long list of complementary products. Founded in 1976 and 50 years in business, it serves over 7,200 financial institutions and corporate entities. Operations are classified into four reportable segments: Core, Payments, Complementary and Corporate Services.

Who it serves

Over 900 banks run one of its three core processing platforms and over 700 credit unions run its core credit union platform. Approximately 5,600 more are non-core clients, buying complementary products without the core system. The ground it sells into is stated plainly: the FDIC counted approximately 4,300 commercial banks and savings institutions in the $55 billion and under asset range at 31 December 2025, and America's Credit Unions counted approximately 4,400 domestic credit unions. Both counts are shrinking, down 13% and 16% respectively since the end of 2020, mainly through mergers and acquisitions, while the assets those institutions hold have grown. The company supports core clients with up to $55 billion in assets, payments clients with up to $200 billion and above, and complementary clients with up to $500 billion and above.

Core systems

Core software handles the deposit, loan and general ledger transactions and holds the central accountholder record. There are three software systems marketed to banks and one marketed to credit unions, available for installation at the client's own site or run in the company's private cloud. SilverLake System is the largest of the bank platforms, designed for commercial-focused banks and serving banks with assets ranging from $1 billion up to $55 billion, in use by over 500 banks.

Payments and digital

The Payments segment runs ATM, debit and credit card processing, online and mobile bill pay, money movement, embedded payment capabilities and remote deposit capture. JHA Card Processing Solutions supports full-service and in-house debit and credit card programmes with fraud mitigation, dispute management, plastics manufacturing and personalisation, loyalty programmes and ATM terminal driving. Enterprise Payment Solutions handles automated clearing house, instant payment, credit card and remote deposit capture processing. Jack Henry Digital is anchored by the Banno Digital Platform, a native and browser-based banking front end for accountholders with core-connected back-office tools for staff, and a separate treasury platform serves banks' larger commercial customers.

The Jack Henry Platform

The modernisation effort is a single public cloud-native, API-first platform being developed as an alternative to existing core functions. It carries wire transfers, a centralised data hub for reporting and analysis, exception item processing, general ledger, deposit servicing and entitlements, and can be combined with the company's other public cloud services and with third-party products. It also acts as a connective layer across the existing core systems, which is how newer functions such as stablecoin capabilities, Rapid Transfers and Tap2Local reach clients without disrupting the core they already run.

Acquisitions and people

The company has made 36 acquisitions since the end of fiscal year 1999, the most recent being Victor Technologies in fiscal 2026. The filing states that after 50 years there are very few gaps in the product line and few fairly priced chances to enter adjacent markets, so cash also goes to new products, share repurchases and dividends. Most support and services income comes from hosted clients on typically six-year contracts and recurring electronic payment contracts generally of the same length, with on-premise clients typically on one-year contracts. There were approximately 7,300 full-time and part-time associates at 30 June 2026, none covered by a collective bargaining agreement.

From Jack Henry's annual report on Form 10-K for the year ended 30 June 2026. The filing

Written from the 10-K filed 28 August 2026: read the full 10-K.

The four quarters: Q1 FY2026 · Q2 FY2026 · Q3 FY2026 · Q4 FY2026

Income statement (profit and loss)

$ millionFY2026FY2025FY2024On the yearLast 8 years
Revenue2,5442,3752,216+7.1%
Cost of revenue1,4341,3611,299+5.4%
Gross profit1,1111,015916+9.5%
Gross margin43.7%42.7%41.3%
Research and development176163148+8.4%
Selling, general and administrative299283278+5.7%
Operating income635569489+11.7%
Operating margin25.0%23.9%22.1%
Pre-tax income653586498+11.4%
Income tax150130116+15.1%
Effective tax rate23.0%22.2%23.3%
Net income503456382+10.3%
Net margin19.8%19.2%17.2%
Diluted EPS$6.98$6.24$5.23+11.9%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2026FY2025FY2024On the yearLast 8 years
Operating cash flow762642568+18.8%
Capital expenditure67.153.458.1+25.8%
Free cash flow695588510+18.1%
Free cash flow margin27.3%24.8%23.0%
Cash from investing-278-232-240
Cash from financing-574-346-302
Depreciation42.143.746.3-3.7%
Share-based compensation32.528.428.9+14.3%
Buybacks44835.128.1+1,178.6%
Dividends paid170165156+3.5%
Dividend per share$2.38$2.26$2.14+5.3%
Diluted shares, weighted72m73m73m-1.4%

Balance sheet

$ millionFY2026FY2025FY2024On the yearLast 8 years
Shareholders' equity2,0522,1311,842-3.7%
Debt40.00.0150
Operating lease liabilities28.941.851.1-31.0%
Other liabilities1,025871881+17.6%
Total liabilities and equity3,1463,0442,924+3.3%
Fixed assets220221215-0.2%
Goodwill828805805+2.9%
Cash and equivalents12.110238.3-88.2%
Receivables349318333+9.8%
Other assets1,7361,5981,533+8.6%
Total assets3,1463,0442,924+3.3%

10-K for the year ended 30 June 2026, filed 28 August 2026: the filing.