Jack Henry & Associates, Inc. (JKHY) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Jack Henry & Associates, Inc. (JKHY) Technology Profile & Competitive Position

Jack Henry & Associates, Inc. delivers technology and payment processing solutions to US financial institutions, focusing on core banking, payments, and complementary services. With a history dating back to 1976, the company supports a diverse range of banks and credit unions, emphasizing integrated applications and customer service.

What Is the Investment Thesis for JKHY?

Jack Henry & Associates, Inc. presents a stable investment opportunity within the financial technology sector. With a P/E ratio of 23.13 and a profit margin of 20.6%, the company demonstrates consistent profitability. A dividend yield of 1.54% offers a steady income stream for investors. Growth catalysts include the increasing demand for digital banking solutions and the ongoing need for secure payment processing systems. However, potential risks include competition from larger technology firms and the impact of economic downturns on financial institutions. The company's beta of 0.72 suggests lower volatility compared to the overall market.

Based on FMP financials and quantitative analysis

JKHY Key Highlights

Market capitalization of $11.5B, reflecting its significant presence in the financial technology sector.

• Profit margin of 20.6%, indicating efficient operations and strong profitability.
• Gross margin of 43.8%, showcasing the company's ability to manage costs effectively.
• Dividend yield of 1.54%, providing a consistent return to shareholders.
• Beta of 0.72, suggesting lower volatility compared to the broader market, making it a potentially stable investment.

Who Are JKHY's Competitors?

JKHY is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are JKHY's Key Strengths?

Strong market position in the financial technology sector.

• Diversified product portfolio with integrated solutions.
• Long-standing relationships with a large customer base.
• Consistent profitability and cash flow generation.

What Are JKHY's Weaknesses?

Reliance on the U.S. market.

• Limited international presence.
• Exposure to regulatory changes in the financial services industry.
• Potential for disruption from emerging technologies.

What Could Drive JKHY Stock Higher?

Increasing adoption of digital banking solutions by financial institutions.

• Growing demand for secure payment processing services.
• Potential acquisitions of companies with complementary technologies.
• Expansion of cybersecurity offerings to protect against cyber threats.

What Are the Key Risks for JKHY?

Insider selling — insiders were net sellers of roughly $1.6M recently.

• Competition from larger technology firms with greater resources.
• Impact of economic downturns on financial institutions and their technology spending.
• Cybersecurity threats and data breaches.
• Regulatory changes in the financial services industry.
• Rapid technological changes and obsolescence.

What Are the Growth Opportunities for JKHY?

• Expansion of Digital Banking Solutions: The increasing demand for digital banking services presents a significant growth opportunity for Jack Henry. By enhancing its online and mobile banking platforms, the company can attract new customers and increase engagement with existing ones. The market for digital banking solutions is projected to reach $9 billion by 2028, driven by the need for convenient and secure financial services. Jack Henry's integrated approach and focus on customer experience can provide a competitive advantage in this rapidly growing market.
• Enhancement of Payment Processing Capabilities: As the volume of electronic payments continues to rise, Jack Henry can capitalize on this trend by expanding its payment processing capabilities. By offering innovative payment solutions, such as mobile payments and real-time payments, the company can attract new clients and increase revenue from existing customers. The global digital payments market is expected to reach $10 trillion by 2026, fueled by the growth of e-commerce and mobile commerce. Jack Henry's expertise in providing secure and reliable payment processing services positions it well to capture a significant share of this market.
• Strategic Acquisitions: Jack Henry can pursue strategic acquisitions to expand its product offerings and geographic reach. By acquiring companies with complementary technologies and customer bases, the company can accelerate its growth and strengthen its competitive position. The financial technology sector is highly fragmented, with numerous small and medium-sized companies offering specialized solutions. Jack Henry's strong financial position and industry expertise make it well-suited to identify and integrate attractive acquisition targets.
• Focus on Cybersecurity Solutions: With the increasing threat of cyberattacks, financial institutions are investing heavily in cybersecurity solutions. Jack Henry can capitalize on this trend by offering advanced security solutions that protect its clients from cyber threats. The cybersecurity market for financial services is projected to reach $70 billion by 2027, driven by the need to protect sensitive financial data and comply with regulatory requirements. Jack Henry's expertise in providing secure and reliable technology solutions positions it well to capture a significant share of this market.
• Expansion into New Geographic Markets: While Jack Henry primarily serves financial institutions in the United States, the company can expand its reach into new geographic markets. By targeting countries with growing financial sectors and increasing adoption of digital technologies, the company can diversify its revenue streams and reduce its reliance on the U.S. market. Emerging markets in Asia and Latin America offer significant growth opportunities for financial technology companies. Jack Henry's experience in providing integrated solutions for financial institutions can be leveraged to succeed in these new markets.

What Are JKHY's Competitive Advantages?

• High switching costs for financial institutions due to the complexity of core banking systems.
• Long-standing relationships with a large customer base.
• Integrated suite of solutions that address a wide range of customer needs.
• Deep industry expertise and regulatory knowledge.

What Does JKHY Do?

Founded in 1976 and headquartered in Monett, Missouri, Jack Henry & Associates, Inc. has evolved into a leading provider of technology solutions and payment processing services for financial services organizations across the United States. The company operates through four key segments: Core, Payments, Complementary, and Corporate and Other. Under the Jack Henry Banking brand, the company offers information and transaction processing solutions tailored for banks, ranging from community institutions to multi-billion-dollar asset organizations. The Symitar brand focuses on providing core data processing solutions for credit unions. ProfitStars delivers specialized financial performance, imaging and payments processing, information security and risk management, retail delivery, and online and mobile solutions to financial institutions and corporate entities. Jack Henry's comprehensive suite of integrated applications supports deposit, loan, and general ledger transactions, while also maintaining centralized customer/member information. The company's Jack Henry Banking business brand offers SilverLake, a robust solution designed for commercial-focused banks; CIF 20/20, a parameter-driven system for banks; and Core Director, a cost-efficient system with point-and-click operation. Its Symitar business brand provides Episys, a robust solution designed for credit unions. In addition, Jack Henry offers digital products and services, electronic payment solutions, and resells hardware systems, providing implementation, training, and support services.

What Products and Services Does JKHY Offer?

• Provides core banking systems for banks of all sizes.
• Offers core data processing solutions for credit unions.
• Delivers specialized financial performance solutions.
• Provides imaging and payments processing services.
• Offers information security and risk management solutions.
• Provides retail delivery, online, and mobile solutions.
• Sells and supports hardware systems like servers and workstations.

How Does JKHY Make Money?

• Software licensing and subscription fees for core banking and credit union systems.
• Transaction fees for payment processing services.
• Professional services fees for implementation, training, and support.
• Hardware sales and maintenance.

What Industry Does JKHY Operate In?

Jack Henry & Associates, Inc. operates in the competitive financial technology sector, which is experiencing rapid growth due to the increasing adoption of digital banking and payment solutions. The industry is characterized by evolving customer expectations, regulatory changes, and technological advancements. Jack Henry competes with companies like Akamai Technologies, Inc. (AKAM) and CACI International Inc (CACI), as well as smaller niche players. The company's focus on providing integrated solutions for community banks and credit unions positions it well to capitalize on the demand for tailored technology offerings.

Who Are JKHY's Key Customers?

• Community banks
• Regional banks
• Credit unions
• Financial institutions
• Corporate entities

Over the past six months, Jack Henry & Associates, Inc. insiders filed 80 SEC Form 4 transactions — 41 sales and 39 purchases. On net that is roughly 41K shares acquired (about $1.6M) — insiders putting money in tends to read as conviction.

Jack Henry & Associates, Inc. has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 10.9% above estimates on average.

Jack Henry & Associates, Inc.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 9.46 places it in the safe zone, indicating low near-term bankruptcy risk.

Return on equity for Jack Henry & Associates, Inc. stands at 24.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 17.0%, showing how much profit it generates from its asset base. JKHY trades at a trailing price-to-earnings ratio of 23.13, below the Technology sector average of ~32.70x. Its free cash flow yield is 7.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.74 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 5.1%, the inverse of the P/E and a quick read on earnings relative to price.

Jack Henry & Associates, Inc. (JKHY) Valuation Context

Valued at $11.5B, JKHY is classified as a large-cap stock. Analyst price targets span from $170.00 to $215.00, with a consensus of $186.00. At the current price of $161.23, that implies approximately 15% upside potential. Relative to its peer group, JKHY's quantitative score of 85/100 is above the peer average of 71/100.

JKHY Revenue & Earnings Trend

In Q4 FY2026, JKHY generated $633.1M in top-line revenue, marking a sequential decrease of 0.5%. The company recorded net income of $111.2M, with diluted EPS of $1.54. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Technology. Across the four most recent quarters, JKHY averaged $1.74 in diluted EPS.

Company Profile

Jack Henry & Associates, Inc. operates in the Information Technology Services industry within the Technology sector. It is headquartered in Monett, US. The company is led by CEO Gregory R. Adelson. JKHY has traded publicly since 1985.

JKHY Financials

JKHY earnings history & estimates →

JKHY Latest News

JKHY Analyst Consensus

JKHY MoonshotScore

JKHY Technology Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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