Jack Henry & Associates (JKHY) 2026 Baird Global Consumer, Technology & Services Conference summary

Business overview and growth drivers

• Operates three main segments: core processing, payments, and complementary solutions, with a strong focus on hosted and cloud-based services for banks and credit unions.

• Serves 1,700 out of roughly 9,000 U.S. banks, with a high win rate in core processing conversions, especially among larger institutions.

• Differentiates through service, innovation, transparency, and a people-first culture, not by being the lowest-cost provider.

• Celebrated 50 years in business and 40 years as a public company, emphasizing execution and strategic innovation.

Cloud transformation and financial impact

• 79% of clients are hosted in a private cloud, with a steady migration from on-premise; public cloud migration is underway.

• Migration to the Jack Henry cloud doubles revenue per client at high margins, with further uplift expected as more clients move to public cloud.

• Public cloud transition offers a 25 basis point margin uplift, improved uptime, faster innovation, and enhanced security.

• Internal EC2030 project aims to exit data center ownership, moving to a public cloud plus colocation model for long-term margin expansion.

AI and technology modernization

• AI is seen as an opportunity, not a disruption, due to regulatory complexity and deep banking knowledge requirements.

• AI adoption is driving efficiency, with over 70% improvement in code production velocity and embedded AI in products like fraud detection and customer service.

• Open architecture and API-driven approach enable competition and integration with third-party solutions.