Jack Henry & Associates, Inc. (JKHY) AI Stock Analysis

Jack Henry & Associates, Inc. is a financial technology company providing technology solutions and services across four segments: Core, Payments, Complementary, and Corporate and Other. Serving community institutions to multi-billion-dollar banks and credit unions, it delivers commercial banking solutions under the Jack Henry Banking brand, including SilverLake, CIF 20/20, and Core Director. Through Symitar, it offers the Episys platform for credit union core data processing. Its ProfitStars brand provides financial performance management, imaging and payments processing, information security, risk management, and digital and mobile banking solutions. Headquartered in Monett, Missouri, the company was founded in 1976 and employs 7,300 people.

Between FY2022 and FY2026, revenue increased from $1.94B to $2.50B, delivering a 5-year revenue CAGR of 7.3%. Annual revenue growth was 5.1% in FY2026, compared to 7.2% in FY2025. Gross margin expanded to 43.1% in FY2026 from 41.9% in FY2022, while operating margin reached 24.3%. Annual net income rose to $502.8M in FY2026 with a net margin of 20.1% and diluted EPS of $6.65. For the trailing twelve months, revenue totaled $2.54B with an operating margin of 22.5%. In the latest quarter ended June 30, 2026, quarterly revenue grew 4.7% year-over-year, while quarterly earnings growth fell 10.4%.

As of June 30, 2026, the company held $12.1M in cash and short-term investments against total debt of $40.0M, resulting in net debt of $27.9M. Shareholders' equity was $2.05B, supporting a low debt-to-equity ratio of 0.02 and a current ratio of 1.17. In FY2026, operating cash flow reached $762.0M, while free cash flow stood at $694.9M. Cash use during FY2026 included $67.1M for capital expenditures, $448.2M spent on share buybacks, and $170.4M distributed via dividends.

At a share price of $153.19, the company carries a market cap of $10.74B and an enterprise value of $10.43B. Its trailing P/E ratio of 21.9x and forward P/E of 20.2x sit below the median of its S&P 500 Technology peers, which are 31.5x and 20.9x, respectively. The company also trades at an EV/EBITDA of 12.0x versus the peer median of 19.9x, and a price-to-sales of 4.2x versus 6.3x. Over the past year, the stock returned 1.7%, trailing the S&P 500 return of 16.8%. Over 5 years, the stock returned -3.9% against 83.0% for the S&P 500.

Jack Henry & Associates pays a forward annual dividend of $2.44 per share, translating to a dividend yield of 1.59%. The company maintains a payout ratio of 36.2% and distributes payments quarterly. It has paid dividends for 37 consecutive years, achieving an annualized 5-year dividend growth rate of 6.2%. The last ex-dividend date was September 4, 2026.

Analyst coverage includes 11 Strong Buy, 4 Buy, and 6 Hold recommendations, with 0 Sell or Strong Sell ratings. The mean price target of $188.37 represents a 23.0% upside versus the last close of $153.19. For the current fiscal year ending June 30, 2027, consensus estimates forecast revenue of $2.69B and EPS of $7.25, indicating 9.4% earnings growth. The company has beat EPS estimates in 4 of the last 4 quarters, and the next earnings date is November 3, 2026.

This page is an AI-written research summary of Jack Henry & Associates, Inc. (JKHY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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