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Jack Henry & Associates, Inc.
S&P 500
$9.4B
Market Cap
28.9
P/E
2.87
PEG
16.4%
ROCE
22.9%
ROE
0.00
D/E
23.9%
OPM
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🌏 Global Investor Returns
Currency-adjusted total returns for JKHY including FX impact
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📈 Price History
Ratio Health
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Good
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By Category
Shareholding
About

Jack Henry & Associates, Inc. operates as a financial technology company that connects people and financial institutions through technology solutions and payment processing services.

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3-Statement Financial Model
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🎙 Management Tone Mixed → Stable 4 quarters Full tone analysis in Intelligence →
📊 MIXED Jack Henry Q3 2026 record non-GAAP revenue $616M, 7.3% growth, 17 core wins
Revenue & Profitability
Q3 2026 non-GAAP revenue was $616 million, up 7.3% year-over-year. GAAP EPS was $1.71, up 12%, and year-to-date GAAP EPS was $5.41, up 20%. Non-GAAP operating margin was 22.9%, flat year-over-year. Full-year fiscal 2026 guidance: GAAP revenue growth 6.1%-6.6%, non-GAAP revenue growth 6.6%-7.1%, GAAP EPS $6.78-$6.87 (growth 9%-10%), and free cash flow conversion of 95%-105%.
Outlook
Management sees strong demand: 88% of surveyed clients expect to increase technology budgets over the next two years (up from 76% last year), with 41% planning 6%-10% increases. AI is now the top priority for CEOs. The company is confident about exceeding 51 core wins for the fiscal year, with robust pipelines across all segments. Macro volatility is not affecting client tech spending.
Growth Drivers
Key growth levers include competitive core wins (17 in Q3, 43 year-to-date, 11 over $1B), trifecta wins (58% include digital banking and card solutions), faster payments (transaction volume up 47% YoY), Tap2Local (700+ banks live, 1,600 merchants), Rapid Transfers (110 live, average transaction $260 vs. $130 original projection), and Jack Henry Payments Orchestrator (pipeline of 40+ banks/fintechs).
Balance Sheet & CapEx
Not discussed in this earnings call.
Margins
Q3 2026 non-GAAP operating margin was 22.9%, flat year-over-year. Year-to-date non-GAAP margin was 25%, up 195 basis points. Full-year margin expansion guidance was raised to 75-95 basis points from 20-40. Q4 margins are expected to contract due to normalization of medical expenses, commission timing, and cloud migration costs. Long-term tailwinds include AI, public cloud, and product mix toward higher-margin solutions.
Key Risks
Risks include lumpy deconversion revenue from M&A (Q3 deconversion revenue $19M, highly variable quarter-to-quarter), Q4 revenue expected below consensus due to timing of digital and card revenue, normalization of medical expenses and commissions pressuring Q4 margins, network incentive revenue variability, and regulatory uncertainty for stablecoin processing. Macro consumer sensitivity could impact card volumes, though no near-term impact seen.
Generated by AI · Q3 2026 results · Not investment advice
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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