Jack Henry & Associates (JKHY) Q4 2026 earnings summary

Executive summary

• Achieved record financial performance in fiscal 2026, with non-GAAP revenue up 7.3% to $2.5B and 58 competitive core wins, including 14 institutions with over $1B in assets and the largest bank client in company history.

• Non-GAAP operating margin expanded to 24% for the year, a 92 basis point increase, marking the third consecutive year of margin expansion above 60 basis points.

• 59% of core wins were trifecta deals (core, digital banking, card), up from 39% last year.

• Continued innovation in AI, cybersecurity, and payments, with 22 AI-enabled products in market and over 100 internal AI tools deployed.

• Fourth quarter GAAP revenue rose 4.7% year-over-year, while GAAP operating income fell 12.2%; non-GAAP adjusted revenue up 6.6%, adjusted operating income down 3.1%.

Financial highlights

• Q4 GAAP revenue increased 5%; non-GAAP revenue up 7% for both Q4 and full year; full-year GAAP revenue increased 7.1%.

• Cloud revenue grew 7% in Q4, now 32% of total revenue; processing revenue (44% of total) up 7.5%.

• Recurring revenue comprised 91% of total quarterly revenue.

• Q4 non-GAAP operating margin was 21%; full-year non-GAAP margin reached 24%.

• GAAP EPS for the year was $6.98, up 12%; Q4 GAAP EPS was $1.57, down 10%.

Outlook and guidance

• Fiscal 2027 GAAP revenue guidance: $2,684–$2,709 million; non-GAAP revenue growth at 6.3%-7.3%.

• Full-year non-GAAP margin projected to expand 20-40 basis points; non-GAAP adjusted operating margin: 24.1–24.3%.

• GAAP EPS guidance for FY27 is $7.33-$7.38, up 5%-6%.

• Free cash flow conversion outlook for FY27 is 85%-100%.

• Guidance assumes no acquisitions or dispositions in fiscal 2027.