Jack Henry & Associates (JKHY)
NASDAQFinancialsInformation Technology ServicesSnapshot 2026-09-04
$165.64-1.62%
Close 2026-09-04 · 1-day change
NASDAQFinancialsInformation Technology ServicesSnapshot 2026-09-04
Intact: The reason to own it still holds.
Jack Henry grows revenue about 8.7% yearly and raised full year revenue guidance to $2.485 billion. Profit margin expanded to 24.4%, above prior 23.7%. EPS rose 12.2% to $1.71 last quarter, with full year EPS guidance raised to $6.83. The company supports shareholders with a $5 million share buyback expansion.
Growth could slow below analyst expectations near 6.6%. Margin expansion may stall if costs rise. CEO transition may cause uncertainty. Buyback progress is mixed and may not offset valuation risks.
The price is about 7% above our fair value near $137, reflecting roughly 7% revenue growth expected by analysts. Our fair value is 19% below the Street median, indicating the market prices in stronger growth than our model supports.
Breaks if: No further buyback expansions or buybacks halted
Expand share repurchase authorization and execute buybacks to return capital to shareholders.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
JKHY represents a durable compounder with a focus on consistent revenue growth and margin expansion. The current thesis state is cautious, as recent performance has not kept pace with industry peers, despite management's positive guidance.
The market appears to price in a premium for JKHY compared to its peers, indicating high expectations for future performance. However, this premium may be unjustified given the company's recent financial performance relative to its industry cohort.
Management is on track with priorities to drive revenue and earnings per share (EPS) growth, as evidenced by recent financial results. While the near-term risk of missing guidance is low, the company must navigate potential challenges from sector peers that could impact its momentum.
The thesis hinges on the performance of sector bellwethers like FISV, FIS, and IREN. If these companies continue to beat earnings and guide higher, it could support JKHY's growth. Conversely, any negative guidance from these peers could pose a risk to JKHY's momentum.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. UBS expects modestly weaker revenue in Q1 FY2027. This is due to timing and difficult comparisons. UBS also expects margins to improve in H2 FY2027. The company recently beat earnings estimates, which supports revenue growth and margin expansion.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 3 of last 5 quarters. The Board approved an increase of 5 million shares to the repurchase authorization in 2026-Q1. Stock repurchases totaled $448 million for fiscal year ended June 30, 2026, with quarterly buybacks of $159M and $164M in Q3 and Q4 respectively. Management is delivering on capital return through active repurchases.
“Stock repurchases for the fiscal three months ended March 31, 2026, were $159 million at an average of $162 per share.”
“Stock repurchases for the fiscal three months ended June 30, 2026, were $164 million at an average price of $140 per share.”
“Board approved an addition of five million shares to its existing stock repurchase authorization.”
Breaks if: Full year EPS falls below $6.0
Breaks if: Operating margin falls below 23.5%
Breaks if: Full year revenue falls below $2.35 billion
Management aims to grow full year revenue, reflecting strong sales momentum and demand across core, payments, and complementary segments.
Over the next 1 to 3 years, JKHY's performance will depend on its ability to maintain growth in a competitive sector. Monitoring sector trends will be crucial. Not investment advice.