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JKHY Set to Report Q3 Earnings: What's in the Cards for the Stock?

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Key Takeaways

  • JKHY Q3 sales seen at $615.3M, up 5.2% Y/Y, while EPS is projected to fall 5.3% year over year.
  • JKHY benefits from cloud migration, platform demand and services growth momentum.
  • JKHY faces margin pressure from higher medical costs and cloud infrastructure spending.

Jack Henry & Associates, Inc. (JKHY - Free Report) is scheduled to report third-quarter fiscal 2026 results on May 5, after market close.

For the fiscal third quarter, the Zacks Consensus Estimate for sales is pegged at $615.3 million, indicating growth of 5.2% from the prior-year quarter’s reported figure.

The consensus mark for earnings is pegged at $1.44 per share, suggesting a decrease of 5.3% 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 19.5%.

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

Factors Likely to Influence JKHY’s Q3 Results

Jack Henry’s fiscal third-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 $345.8 million, indicating growth of 4.5% 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 is pinned at $188.4 million, indicating a rise of 3.9% 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 $228.6 million, implying growth of 5.5% year over year.

The company’s diverse mix of solutions, including Banno, Financial Crimes Defender and Fraud & Risk Management Add-ons, is expected to have driven growth in the Complementary segment during the fiscal third quarter. The consensus estimate for Complementary revenues is pegged at $178.4 million, indicating a jump of 6.6% from the year-ago quarter.

However, expenses such as higher medical benefit costs, increased cloud migration infrastructure spending and higher commissions could weigh on the company’s margins during the third quarter of fiscal 2026.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for JKHY this season. The combination of a positive Earnings ESP and Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

JKHY currently has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks you may want to consider in the broader Zacks Computer and Technology sector, as our model shows that these have the right combination of elements to post an earnings beat:

Fabrinet (FN - Free Report) has an Earnings ESP of +2.70% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Fabrinet is slated to report third-quarter fiscal 2026 results on May 4. The Zacks Consensus Estimate for Fabrinet’s third-quarter earnings is pegged at $3.58 per share, up by 2 cents over the past 30 days, indicating a rise of 42.1% from the year-ago quarter’s reported figure.

Arista Networks (ANET - Free Report) has an Earnings ESP of +2.79% and carries a Zacks Rank #2 at present.

Arista Networks is set to report first-quarter 2026 results on May 5. The Zacks Consensus Estimate for Arista Networks’ first-quarter 2026 earnings is pegged at 81 cents per share, unchanged over the past 60 days, indicating a rise of 24.6% from the year-ago quarter’s reported figure.

Advanced Micro Devices (AMD - Free Report) has an Earnings ESP of +5.02% and carries a Zacks Rank #2 at present.

It is set to report first-quarter fiscal 2026 results on May 5. The Zacks Consensus Estimate for Advanced Micro Devices’ first-quarter earnings is pegged at $1.30 per share, up by 2 cents over the past seven days, indicating a rise of 35.4% from the year-ago quarter’s reported figure.

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