JKHYNasdaqServices-Computer Integrated Systems DesignUS GAAP · USD

Jack Henry & Associates, Inc

Jack Henry & Associates builds core banking, payments, digital banking, and complementary software used by community and regional banks, credit unions, and selected corporate clients. Its platform mix spans on-premise, private cloud, and public cloud delivery, with recurring support and processing revenue forming the backbone of the business.

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Revenue2,544m USD
+7.1 %y/y
Operating profit (EBIT)635m USD
+11.7 %y/y
EBIT margin25.0%
+1.0 ppy/y
Net income503m USD
+10.3 %y/y
Free cash flow695m USD
+18.1 %y/y

Fiscal year 2026 · change from previous year

Development 2021–2026

01,0002,0003,000m USD2021: 1,758 m USD2021: EBIT 399 m USD20212022: 1,943 m USD2022: EBIT 475 m USD20222023: 2,078 m USD2023: EBIT 481 m USD20232024: 2,216 m USD2024: EBIT 489 m USD20242025: 2,375 m USD2025: EBIT 569 m USD20252026: 2,544 m USD2026: EBIT 635 m USD20262,544635
RevenueOperating profit (EBIT)
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Business

Share of revenue
Core processing35 %

Core banking and credit union data processing platforms for account, deposit, and transaction processing.

Payments25 %

Card, remittance, ACH, faster payments, and related transaction processing services.

Complementary software20 %

Digital banking, fraud, security, imaging, retail delivery, and other add-on applications.

Cloud and support18 %

Private/public cloud hosting, maintenance, implementation, consulting, and support services.

Corporate and other2 %

Residual segment items and non-core activities not allocated to operating segments.

Products

Reported · share of revenue
43.1%32.1%13.2%11.6%FY2026100 %
  • Processing43.1 %
  • Outsourcing Cloud32.1 %
  • In House Support13.2 %
  • Product Deliveryand Service11.6 %

Source: 10-K FY2026, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

The company sells primarily to community and regional banks and credit unions, which use its systems to run core operations and deliver digital and payment services to accountholders. It also serves a smaller set of non-core corporate entities with specialized financial technology products. Customers buy Jack Henry to modernize operations, improve service, manage risk, and add digital capabilities without replacing their entire technology stack.

Community and regional banks

Buy core banking platforms, digital banking, payments, and risk tools to compete with larger institutions.

Credit unions

Buy core credit union processing and complementary applications to improve member service and efficiency.

Non-core financial services clients

Buy specialized products such as payments, imaging, and risk management tools.

Corporate entities outside financial services

Buy selected non-core solutions where Jack Henry's software fits niche transaction or workflow needs.

Strategy

Jack Henry is pushing a public cloud-native, API-first modernization platform centered on the Jack Henry Platform, while continuing to cross-sell digital, payments, and security products into its installed base. Management also emphasizes long-term client retention, disciplined acquisitions, and expansion with larger financial institutions, aiming to sustain recurring growth and margin expansion.

Public cloud-native modernizationMedium term

Creates a modern, scalable platform that can replace legacy core functions and deepen client stickiness.

Cross-sell into installed baseShort term

Raises revenue per client and improves retention by embedding more products into daily workflows.

Expand with larger institutionsMedium term

Broadens the addressable market and supports growth beyond the traditional community bank base.

Disciplined acquisitionsMedium term

Adds product capability and customer relationships without relying solely on organic development.

Geography

The business is overwhelmingly U.S.-centric, with headquarters in Monett, Missouri and operations serving financial institutions nationwide. Management says international sales were less than 1% of revenue in fiscal 2025, 2024, and 2023, with activity mainly in Latin America, the Caribbean, and Canada. That makes the company exposed primarily to U.S. banking technology spending, regulation, and client retention trends.

Risks

The main risks come from cybersecurity, software defects, implementation issues, and third-party technology dependencies, all of which can disrupt client operations and damage trust in a mission-critical platform. The company is also exposed to competitive pressure in financial technology, regulatory/compliance demands, and the challenge of expanding into non-traditional clients that may carry higher credit and litigation risk.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Data security breaches and cyber incidents1Software defects and implementation failures2Competitive pressure3Regulatory and compliance burden4Expansion into non-traditional clients5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Data security breaches and cyber incidentsImpact: HighLikelihood: Medium

    The company processes and stores sensitive financial and operational data, making it a high-value target.

    ExposureClient dataIntellectual propertySource codeService availability
  2. Software defects and implementation failuresImpact: HighLikelihood: Medium

    Core banking and payments software is complex and mission-critical, so defects can cause outages and reputational damage.

    ExposureNew releasesUpdatesIntegrationsClient conversions
  3. Competitive pressureImpact: MediumLikelihood: Medium

    The market includes established rivals and new entrants, which can pressure pricing and win rates.

    ExposureCore processingDigital bankingPayments
  4. Regulatory and compliance burdenImpact: MediumLikelihood: Medium

    Clients operate in a heavily regulated environment and expect compliant, secure solutions.

    ExposureBankingCredit unionPaymentsData protection requirements
  5. Expansion into non-traditional clientsImpact: MediumLikelihood: Medium

    Serving less regulated customers can increase credit, operational, and litigation risk.

    Exposure: Non-financial corporate entities and new business lines

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Accounting

Judgemental items
Revenue recognition across mixed contract types

Different service lines recognize revenue over time or at points in time, affecting quarterly comparability.

Impact: Cloud, support, processing, license, implementation, and hardware revenue timing

Purchase accounting for acquisitions

Fair value estimates for acquired software and client-related intangibles affect goodwill and amortization.

Impact: Goodwill balance, intangible asset amortization, and future impairment risk

Software capitalization and amortization

Judgment is required to determine technological feasibility, useful life, and impairment.

Impact: Operating expenses and asset carrying values

Expense disaggregation disclosure

New disclosure requirements may provide more detail on compensation, depreciation, and amortization.

Impact: Improved visibility into operating cost structure

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Last updated: 24/09/2026