Jack Henry Q2 adjusted revenue slightly beats expectations

Overview

• Financial technology provider's fiscal Q2 GAAP revenue rose 7.9% yr/yr

• Non-GAAP adjusted revenue for Q2 slightly beat analyst expectations

• GAAP EPS for Q2 grew 28.6% yr/yr

Outlook

• Jack Henry projects fiscal 2026 GAAP revenue between $2,508 mln and $2,525 mln

• Company expects fiscal 2026 GAAP EPS to range from $6.61 to $6.72

• Jack Henry anticipates fiscal 2026 non-GAAP adjusted revenue between $2,474 mln and $2,491 mln

Result Drivers

• CLOUD AND FASTER PAYMENTS - Growth in cloud-native solutions and faster payments products drove revenue increases

• REDUCED EXPENSES - Lower selling, general, and administrative expenses due to decreased travel and entertainment costs and gains on asset sales

• SEGMENT GROWTH - Core, payments, and complementary segments all showed revenue growth, contributing to overall performance

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for Jack Henry & Associates Inc is $200.00, about 11.6% above its February 2 closing price of $179.18

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nPnc3bNHxa

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