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Jack Henry & Associates Shares Rise as Q2 Earnings Beat Estimates

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Key Takeaways

  • JKHY shares rose 4.7% in extended trading as Q2 fiscal 2026 earnings of $1.72 per share beat estimates.
  • JKHY posted 7.9% revenue growth, with Services and Processing segments driving gains and margins expanding.
  • JKHY lifted fiscal 2026 guidance, raising GAAP revenue, operating margin and earnings outlook.

Jack Henry & Associates, Inc. (JKHY - Free Report) shares gained 4.7% during Tuesday’s extended trading session after the company reported better-than-expected second-quarter fiscal 2026 results. The company reported non-GAAP earnings of $1.72 per share, beating the Zacks Consensus Estimate by 20.28% and increasing 28.4% year over year.

Jack Henry & Associates’ revenues of $619.3 million topped the Zacks Consensus Estimate by 1.64%. The top line rose 7.9% year over year.

After adjusting for deconversion revenues of $8.2 million, non-GAAP revenues were $611.2 million, up 6.7% year over year.

JKHY’s Q2 Top-Line Details

Revenues from Services and Support (55.8% of total revenues) were $345.8 million, up 7.1% year over year, primarily driven by growth in data processing and hosting revenues. Second-quarter fiscal 2026 revenues from Processing (44.2% of total revenues) were $273.5 million, up 9.1% year over year, backed by growth in card, transaction and digital, and payment processing revenues.

Revenues from Core segments (30% of total revenues) in the second quarter of fiscal 2026 were $186.1 million, up 8.4% year over year. Revenues from Payments (37.5% of total revenues) were $232 million, which rose 8% year over year. Revenues from Complementary (29.3% of total revenues) were $181.7 million, up 9.6% year over year. Revenues from Corporate and Other (3.2% of total revenues) were $19.6 million, down 9.8% year over year.

JKHY’s fiscal second-quarter adjusted EBITDA was $206.2 million, up 17.7% year over year. The adjusted EBITDA margin expanded 280 basis points (bps) year over year to 33.3%.

Adjusted operating income increased 29.4% year over year to $159.1 million. The adjusted operating margin rose 430 bps year over year to 25.7%.

As of Sept. 30, 2025, JKHY’s cash and cash equivalents were $28 million compared with $36.2 million as of Sept. 30, 2025. In the first six months of fiscal 2026, Jack Henry & Associates generated an operating cash flow of $273 million and free cash flow of $172 million.

JKHY Updates 2026 Guidance

For fiscal 2026, Jack Henry & Associates updated its GAAP revenue guidance to $2.508-$2.525 billion, up from its previously guided range of $2.49-$2.51 billion. Non-GAAP revenues are estimated in the range of $2.474-$2.491 billion. The Zacks Consensus Estimate for revenues is pegged at $2.5 billion, suggesting a year-over-year rise of 5.5%.

The GAAP operating margin is anticipated between 24.3% and 24.5% compared with its previous guidance of 23.9-24.1%. The adjusted operating margin is expected to be between 23.7% and 23.9%, up from the previous guidance of 23.5-23.7%.

Management expects GAAP earnings in the range of $6.61-$6.72 per share, up from its previous guidance range of $6.38-$6.49 for fiscal 2026. The Zacks Consensus Estimate for earnings is pegged at $6.46 per share, indicating a year-over-year increase of 3.5%.

JKHY’s Zacks Rank and Other Stocks to Consider

Currently, Jack Henry & Associates carries a Zacks Rank #2 (Buy).

Amphenol (APH - Free Report) , Micron Technology (MU - Free Report) and Analog Devices (ADI - Free Report) are some other top-ranked stocks that investors can consider in the Zacks Computer and Technology sector. Amphenol and Micron Technology sport a Zacks Rank #1 (Strong Buy) each at present, while Analog Devices carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Amphenol’s 2026 earnings has been revised upward by 2 cents over the past seven days to $4.32 per share, calling for an increase of 29.3% year over year. Amphenol shares have surged 110.5% over the past year.

The Zacks Consensus Estimate for Micron Technology’s fiscal 2026 earnings has moved southward by 14 cents in the past 30 days to $32.90 per share, implying 296.9% year-over-year growth. Micron Technology shares have soared 362.1% over the past year.

The Zacks Consensus Estimate for Analog Devices’ fiscal 2026 earnings has moved northward by 21 cents over the past 30 days to $9.97 per share, indicating a year-over-year increase of 28%. Analog Devices shares have rallied 51.3% over the past year.

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