Jack Henry & Associates (JKHY) Investor Day 2026 summary

Strategic vision and business model

• The organization emphasizes a people-first, culture-driven approach with transparency, consistency, collaboration, and open communication, supporting high associate engagement and industry-leading client retention exceeding 99%.

• The business model targets associates, clients, and shareholders, with 22 consecutive years of dividend increases and a focus on enabling clients to win in their markets.

• Product rationalization continues, with 18 products retired since 2025 and ongoing evaluation for divestiture or sunsetting.

• Award-winning culture recognized by major publications, reinforcing consistency in service and innovation.

• Celebrating 50 years, the organization is committed to helping community and regional financial institutions thrive.

Financial performance and guidance

• FY 2026 delivered 7.3% organic revenue growth, 92 bps margin expansion, and double-digit GAAP EPS growth for the third consecutive year, with GAAP EPS at $6.98.

• Return on invested capital reached 23.2%, with over $539 million in free cash flow and free cash flow conversion at 100.7%.

• FY 2027 guidance: GAAP revenue of $2.684B–$2.709B (+5.5% to +6.5% YoY), non-GAAP adjusted revenue growth of 6.3%–7.3%, continued margin expansion, and 80%–100% free cash flow conversion.

• Long-term revenue growth targeted at 7–8%+, with compounding growth as the company scales and >99% client retention.

• Capital allocation remains disciplined, supporting reinvestment, M&A, shareholder returns, and potential to reduce share count by over 11% by FY 2029 absent M&A.

Technology, innovation, and platform strategy

• R&D investment is 14%–15% of revenue annually, with $358M spent in 2026, focusing on cloud, AI, compliance, payments, and open architecture.

• The Jack Henry Platform is API-first, cloud-native, and fully integrated with foundational cores, enabling rapid innovation and modular adoption without core conversions.

• Over 650 new features are added annually, with 90%+ roadmap execution and transparent client-facing roadmaps.

• Tap2Local, a small business payment solution, is live with 900+ clients, offers instant onboarding and contactless payments, and was recognized as a FinTech Breakthrough Award winner.

• New launches include expense management, virtual card issuance, peer-to-peer payments, tokenized deposits, and stablecoins, all deeply integrated and branded for financial institutions.