It has been about a month since the last earnings report for Jack Henry (JKHY Quick QuoteJKHY - Free Report) . Shares have added about 10.2% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Jack Henry due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Jack Henry & Associates Q1 Earnings Beat Estimates, Revenues Rise Y/Y

Jack Henry & Associates reported first-quarter fiscal 2026 GAAP earnings of $1.97 per share, beating the Zacks Consensus Estimate by 20.1%. The figure jumped 20.9% year over year.

After adjusting for deconversion revenues of $8.6 million, non-GAAP revenues were $636.1 million, up 8.7% year over year.

JKHY’s Q1 Details

Revenues from Services and Support (58.5% of total revenues) were $376.8 million, up 5.7% year over year, primarily driven by growth in data processing and hosting revenues. The figure missed the consensus mark of $379 million.

First-quarter fiscal 2025 revenues from Processing (41.5% of total revenues) were $267.9 million, up 9.7% year over year, primarily driven by growth in card, transaction and digital, and payment processing revenues. The figure surpassed the consensus mark of $257 million.

Revenues from Core segments (30.3% of total revenues) in the first quarter of fiscal 2025 were $195.3 million, up 0.5% year over year. Revenues from Payments (35.8% of total revenues) were $230.9 million, which rose 9% year over year. Revenues from Complementary (30.1% of total revenues) were $194.2 million, up 10.2% year over year.

Revenues from Corporate and Other (3.8% of total revenues) were $24.3 million, up 31.6% year over year.

JKHY’s fiscal first-quarter adjusted EBITDA was $225 million, up 14.6% year over year. The adjusted EBITDA margin expanded 220 basis points (bps) year over year to 34.9%.

Adjusted operating income increased 18.6% year over year to $173.2 million. The adjusted operating margin increased 220 bps year over year to 27.2%.

JKHY’s Balance Sheet & Cash Flow

As of Sept. 30, 2025, JKHY’s cash and cash equivalents were $36.2 million compared with $102 million as of June 30, 2025.

JKHY Lowers 2025 Guidance

For fiscal 2026, Jack Henry & Associates updated its GAAP revenue guidance to $2.51-$2.49 billion, up from its previous guidance of $2.50-$2.48 billion. JKHY expects non-GAAP revenues of $2.48-$2.46 billion compared with its previous guidance of $2.48-$2.45 billion for fiscal 2026.

The GAAP operating margin is anticipated between 24.1% and 23.9% compared with its previous guidance of 24.2-24%. The adjusted operating margin is expected to be between 23.7% and 23.5%, up from the previous guidance of 23.6-23.4%. Management expects GAAP earnings in the range of $6.49-$6.38, up from its previous guidance of $6.44-$6.32 per share for fiscal 2026.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, Jack Henry has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Jack Henry has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.