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Jack Henry to Report Q4 Earnings: What to Expect From the Stock?

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Key Takeaways

  • The Zacks Consensus Estimate of $602.6M for Jack Henry's Q4 revenues indicates Y/Y growth of 7.6%.
  • The consensus estimate sees EPS to rise 5.8% Y/Y to $1.46.
  • Growth expected from cloud migration, payment strength and complementary solutions.

Jack Henry & Associates, Inc. (JKHY - Free Report) is scheduled to report fourth-quarter fiscal 2025 results on Aug. 19, after market close.

For the fiscal fourth quarter, the Zacks Consensus Estimate for sales is pegged at $602.6 million, indicating growth of 7.6% from the prior-year quarter’s reported figure.

The consensus mark for earnings is pegged at $1.46 per share, suggesting an increase of 5.8% from the year-ago quarter’s reported figure.

The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.9%.

Let’s see how things are shaping up for this announcement.

Factors Likely to Influence JKHY’s Q2 Results

Jack Henry’s fiscal fourth-quarter results are likely to benefit from growing momentum in services and support categories. The Zacks Consensus Estimate for services and support revenues is pegged at $340.4 million, indicating growth of 7.5% from the year-ago quarter’s reported figure.

Strength across the Core segment due to continued migration from on-premise to private cloud and robust growth in its public cloud offerings is expected to aid the upcoming results. Increasing demand for the Jack Henry Platform, a single public cloud-native platform designed to run the entire financial institution, and the company’s growing technology modernization strategies might have been other positives. The consensus estimate for the Core segment’s revenues stands at $184.8 million, calling for a rise of 7.4% from the year-ago reported figure.

Strength across the Payments segment due to robust card transaction solutions and growth in its Enterprise Payment Solutions business is likely to have acted as a tailwind for the company in the quarter under review. Moreover, JKHY’s strong sales across Financial Crimes Defender and continued expansion of faster payments infrastructure, PayCenter, are likely to have driven its Payments segment in the to-be-reported quarter. The consensus mark for Payments revenues is pegged at $224.9 million, implying growth of 5.8% year over year.

The company’s diverse mix of solutions, including Banno, LoanVantage and Treasury Management, among others, is expected to have driven growth in the Complementary segment during the fiscal fourth quarter. The consensus estimate for Complementary revenues is pegged at $172.4 million, indicating a jump of 11.1% from the year-ago quarter.

However, ongoing tariff wars, geopolitical tensions and macroeconomic pressure are likely to have negatively impacted JKHY’s overall growth in the to-be-reported quarter.

Earnings Whispers for Jack Henry

Our proven model does not conclusively predict an earnings beat for Jack Henry this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Though Jack Henry carries a Zacks Rank #3, it has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Fabrinet (FN - Free Report) has an Earnings ESP of +1.14% and presently carries a Zacks Rank #2.  You can see the complete list of today’s Zacks #1 Rank stocks here.

Fabrinet is set to report fourth-quarter fiscal 2025 results on Aug. 18. The Zacks Consensus Estimate for the fourth-quarter earnings is pegged at $2.64 per share, revised upward by a penny over the past 30 days. Estimates for Fabrinet’s fourth-quarter EPS indicate year-over-year growth of 9.5%.

Analog Devices (ADI - Free Report) is set to report third-quarter fiscal 2025 results on Aug. 20. The stock has an Earnings ESP of +0.72% and presently carries a Zacks Rank #3.

The Zacks Consensus Estimate for Analog Devices’ third-quarter earnings has been revised upward by a penny to $1.93 per share over the past 30 days. The consensus estimate for Analog Devices’ third-quarter EPS implies a robust year-over-year improvement of 22.2%.

Okta (OKTA - Free Report) is set to report second-quarter fiscal 2026 results on Aug. 26. The stock has an Earnings ESP of +2.29% and presently carries a Zacks Rank #3.

The Zacks Consensus Estimate for Okta’s second-quarter earnings is pegged at 84 cents per share, which has remained unchanged over the past 60 days. Estimates for Okta’s second-quarter EPS call for year-over-year growth of 16.7%.

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