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Jack Henry & Associates Inc

Jack Henry & Associates Inc

JKHY
$151.67USD↓-1.41%-2.17 today

MARKET CAP

10.8B

P/E (TTM)

21.2x

FWD P/E

20.4x

DAY RANGE

$150 – $156

52W RANGE

$121
$193

AI Summary

Stalk
Buy NowMedium

JKHY is in an early Stage 1 consolidation with mean-reversion conditions in place and an active Lockout Rally pattern driving forced upside repricing. Price is holding just above rising 9EMA/20EMA support, and Mean Reversion Eligibility mandates a bullish medium-term bias. Under the Lockout Rally override, execution is Buy Now, focusing on shallow pullback interaction with the short-EMA support zone.

  • ↑Q3 FY26 revenue $616M (+7.3% YoY), guidance up 6.6-7.1%
  • ↑Over 91% recurring revenue underpins stable cash flows
  • ↓Management expects Q4 margin contraction from lower-margin revenue mix
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The case for & against

Bull & Bear analysis

Bullish

Jack Henry & Associates, Inc. (NASDAQ: JKHY) is a leading provider of technology solutions primarily serving the financial services sector, focusing on core banking systems, payment processing, and complementary solutions for banks and credit unions. Positioned in a growing sector driven by digital transformation and evolving customer demands, the company's innovative offerings and commitment to customer relationships help it capture significant market share and maintain strong recurring revenue streams.

Bull says

  • ↑Q3 FY26 revenue $616M (+7.3% YoY), guidance up 6.6-7.1%
  • ↑Over 91% recurring revenue underpins stable cash flows
  • ↑AI investments boost developer productivity by up to 90%
  • ↑Q3 FCF $122M (+137% YoY), 90% conversion, $284M buybacks YTD
  • ↑88% of banks plan higher tech budgets, fueling demand
  • ↑Strong leverage profile and high earnings yield support solvency

Bear says

  • ↓Management expects Q4 margin contraction from lower-margin revenue mix
  • ↓Negative growth factor signals challenges expanding revenue streams
  • ↓High volatility and weak momentum raise price fluctuation risks
  • ↓Valuation concerns from poor quality metrics and lowered price targets
  • ↓Regulatory uncertainty on stablecoin could delay product rollout
  • ↓Negative dividend yield deters income-focused investors

Investment themes with JKHY

High Dividend Yield↑ +0.32%

Companies paying above-average dividends

AVGO · JPM · XOM
Quality↑ +0.54%

Companies with strong fundamentals and stability

NVDA · AAPL · MSFT
FinTech Lending↓ -0.02%

Financial technology companies providing loans

SOFI · COIN · FIS

Earnings Call · Q3 2026 · Mgmt. Guidance

Updated 05-09-2026bullish

Transcript signals

Bull points

  • We produced record third quarter results with non-GAAP revenue of $616 million, up 7.3% over last year's third quarter.
  • Our sales and marketing team delivered an outstanding quarter with 17 competitive core wins, including five institutions with more than $1 billion in assets, representing our strongest third quarter for new core wins in seven years.
  • We continue to see a higher number of trifecta solution wins, with 25 of our core wins, or 58% of the total, including digital banking and card solutions, compared to only 29% at this time last year.

Bear points

  • Q4 will see relatively lower non-GAAP revenue growth compared to the previous three quarters.
  • Our expectation on fourth quarter revenue are below current analyst consensus.
  • Margins are projected to contract in the fourth quarter based on previously disclosed factors.
Read full transcript analysis ›