Revenue and Income - Revenue for the three months ended December 31, 2025, was $619.3 million, an increase of 7.9% compared to $573.8 million for the same period in 2024[15] - Net income for the three months ended December 31, 2025, was $124.7 million, representing a 27.4% increase from $97.8 million in the same period last year[15] - Basic earnings per share for the three months ended December 31, 2025, was $1.73, compared to $1.34 for the same period in 2024, reflecting a 29.1% increase[15] - Operating income for the six months ended December 31, 2025, was $343.2 million, up 25.2% from $274.3 million in the prior year[15] - Net income for the six months ended December 31, 2025, was $268,655, an increase of 23.7% compared to $217,036 for the same period in 2024[20] - For the six months ended December 31, 2025, total revenue reached $1,264,071, up 7.6% from $1,174,829 in 2024[43] - Total revenue for the three months ended December 31, 2025, was $619,334, a 7.9% increase from $573,848 in the same period of 2024[43] - Segment income for Core Payments was $111,170,000 for Q4 2025, compared to $101,283,000 in Q4 2024, reflecting a year-over-year increase of about 9.3%[94] - The total revenue for the Core Payments segment for the six months ended December 31, 2025, was $462,868,000, compared to $426,758,000 in the same period of 2024, reflecting an increase of approximately 8.5%[95] Assets and Liabilities - Total current assets decreased to $615.8 million as of December 31, 2025, from $681.5 million as of June 30, 2025, a decline of 9.6%[13] - Total liabilities decreased to $857.0 million as of December 31, 2025, from $913.1 million as of June 30, 2025, a reduction of 6.1%[13] - The company reported total assets of $3.06 billion as of December 31, 2025, slightly up from $3.04 billion as of June 30, 2025[13] - Cash and cash equivalents decreased to $28.2 million as of December 31, 2025, from $102.0 million as of June 30, 2025, a decline of 72.5%[13] - The company had $33,250 in non-current investments as of December 31, 2025, an increase from $25,750 at June 30, 2025[28] Dividends and Earnings - The company declared dividends of $0.58 per share for the three months ended December 31, 2025, compared to $0.55 per share for the same period in 2024[18] - Basic earnings per share for the fiscal six months ended December 31, 2025, was $3.71, compared to $2.98 for the same period in 2024[81] Cash Flow and Investments - Net cash from operating activities for the six months ended December 31, 2025, was $273,254, up from $206,543 in 2024, reflecting a 32.3% increase[20] - The company reported a net cash outflow from investing activities of $155,806 for the six months ended December 31, 2025, compared to an outflow of $119,800 in 2024[20] - Total cash and cash equivalents at the end of the period were $28,216, compared to $25,653 at the end of December 31, 2024[20] Tax and Interest - The effective tax rate for the fiscal three months ended December 31, 2025, was 24.1%, up from 23.2% in the prior year quarter[67] - For the fiscal six months ended December 31, 2025, the effective tax rate increased to 24.2% from 23.6% in the same period last year[68] - The Company paid income taxes of $24,835 for the fiscal six months ended December 31, 2025, compared to $65,833 for the same period in 2024[69] - The Company paid interest of $1,783 during the fiscal six months ended December 31, 2025, compared to $4,352 in the same period of 2024[66] Acquisitions and Goodwill - The acquisition of Victor Technologies, Inc. on September 30, 2025, was for $42,390, aimed at expanding capabilities in the Payments-as-a-Service market[82] - The goodwill from the Victor acquisition amounted to $22,943, expected to be deductible for income tax purposes[84] Expenses - Total expenses for the six months ended December 31, 2025, were $920,858,000, up from $900,551,000 in the same period of 2024, indicating a rise of approximately 2.5%[95] - The company reported a total cost of revenue of $699,554,000 for the six months ended December 31, 2025, compared to $676,282,000 in the same period of 2024, an increase of about 3.4%[95] - Research and development expenses for the six months ended December 31, 2025, totaled $81,505,000, slightly higher than $80,780,000 in the same period of 2024[95] Other Financial Metrics - The allowance for credit losses at the end of December 31, 2025, was $6,489, a decrease from $6,872 at the end of December 31, 2024[24] - The Company had $23,890 of gross unrecognized tax benefits as of December 31, 2025, with $21,501 potentially affecting the effective tax rate if recognized[72] - Stock-based compensation costs for the fiscal six months ended December 31, 2025, were $14,756, down from $15,539 in the same period of 2024[74] - The Company anticipates a significant reduction in cash tax payments for the current fiscal year due to changes in U.S. federal income tax law[70] Contractual Obligations - Contract assets as of December 31, 2025, included $36,860 in current and $122,708 in non-current assets, showing slight increases from June 30, 2025[45] - Contract liabilities (deferred revenue) decreased to $193,027 in current and $77,967 in non-current as of December 31, 2025, compared to $290,485 and $72,889, respectively, on June 30, 2025[45] - Estimated revenue expected to be recognized in the future related to unsatisfied performance obligations totaled $7,998,267, with approximately 23% expected to be recognized over the next 12 months[49] Share Repurchase - The company repurchased 795 shares of common stock during the first six months of fiscal 2026, with a total cost of $125,237[29] - The company has a share repurchase program with the authority to repurchase up to 2,616 additional shares as of December 31, 2025[29] Market Risks - The company does not currently use any derivative financial instruments to manage market risks, actively monitoring credit and interest risks through controlled procedures[154] - As of December 31, 2025, the company had $20,000,000 in outstanding debt with variable interest rates, with a potential increase in annual interest expense of $200 for every 1% rise in borrowing rates[155]

Core Insights - The company reported record second-quarter results for fiscal 2026, with non-GAAP revenue of $611 million, reflecting a year-over-year increase of 6.7% [3] - Total recurring revenue exceeded 92%, with cloud revenue rising 8% and accounting for 33% of total revenue [1] - GAAP revenue increased by 8% for the quarter and fiscal year-to-date, while non-GAAP revenue grew by 7% for the quarter and 8% for the year [2] Revenue and Profitability - Processing revenue, which constituted 44% of total revenue, grew by 9% on a GAAP basis and 8% on a non-GAAP basis, driven by increased digital, card, and faster payment processing revenue [1] - Non-GAAP operating margin was reported at 25.1%, representing an expansion of 355 basis points compared to the prior-year quarter [3] - GAAP EPS for the second quarter was $0.72, marking a 29% increase, while the first half of the fiscal year saw GAAP EPS rise to $3.70, a 24% increase [6] Market Position and Sales Performance - The company achieved 22 competitive core wins in the quarter, with 68% of new core wins including both digital and card solutions [5][8] - Market share among banks increased by 17% and by 40% for credit unions over the past eight years, attributed to client growth through M&A and successful "winning mergers" [10] - The company logged significant sales momentum, with a noted increase in pipeline activity following competitor consolidation [9] Product Initiatives and Innovations - The cloud-native merchant acquiring solution Tap2Local is being rolled out, with hundreds of clients live and plans to add 100-150 clients per month [4][11] - Rapid Transfers, allowing SMBs and consumers to move funds, is live with 75 clients, with 180 more in various stages of onboarding [12] - The company is beta testing USDC stablecoin payments and evaluating over 20 partners for potential collaborations [13] Segment Performance - Non-GAAP revenue for the core segment increased by 7% in the quarter, with operating margin up five basis points [17] - Payments segment non-GAAP revenue grew by 6%, with a 200 basis point expansion in operating margin, driven by resilience in card-related services [17] - Complementary segment non-GAAP revenue increased by 9%, with 58 basis points of margin expansion [17] Cash Flow and Capital Allocation - Operating cash flow was $153 million in Q2, up $63 million from the prior-year quarter, while free cash flow reached $103 million, an increase of $74 million [18] - The company highlighted $125 million in share repurchases and $84 million in dividends paid through the end of calendar 2025 [19] - Fiscal 2026 guidance was raised for the second consecutive time, reflecting strong demand trends and a robust sales pipeline [20] Future Outlook - Management expressed confidence in the remainder of fiscal 2026, citing strong competitive win rates and a healthy pipeline, while acknowledging potential headwinds from normalized medical benefit costs [20] - Guidance for GAAP revenue growth was increased to 5.6% to 6.3%, with non-GAAP revenue growth tightened to 6.4% to 7.1% [23]

Core Insights - Jack Henry & Associates, Inc. (JKHY) shares increased by 4.7% following the release of better-than-expected second-quarter fiscal 2026 results, with non-GAAP earnings of $1.72 per share, surpassing the Zacks Consensus Estimate by 20.28% and reflecting a year-over-year increase of 28.4% [1][10] - The company's revenues reached $619.3 million, exceeding the Zacks Consensus Estimate by 1.64% and showing a year-over-year growth of 7.9% [1][10] Revenue Breakdown - Adjusted for deconversion revenues of $8.2 million, non-GAAP revenues were $611.2 million, marking a 6.7% increase year over year [2] - Revenues from Services and Support, accounting for 55.8% of total revenues, were $345.8 million, up 7.1% year over year, driven by growth in data processing and hosting revenues [3] - Processing revenues, which made up 44.2% of total revenues, were $273.5 million, reflecting a 9.1% year-over-year increase, supported by growth in card, transaction, digital, and payment processing revenues [3] - Core segment revenues, representing 30% of total revenues, were $186.1 million, up 8.4% year over year [4] - Payments revenues, comprising 37.5% of total revenues, reached $232 million, an 8% increase year over year [4] - Complementary revenues, accounting for 29.3% of total revenues, were $181.7 million, up 9.6% year over year [4] - Corporate and Other revenues, which made up 3.2% of total revenues, were $19.6 million, down 9.8% year over year [4] Profitability Metrics - Adjusted EBITDA for the second quarter was $206.2 million, a 17.7% increase year over year, with an adjusted EBITDA margin expanding by 280 basis points to 33.3% [5] - Adjusted operating income rose by 29.4% year over year to $159.1 million, with the adjusted operating margin increasing by 430 basis points to 25.7% [5] Cash Flow and Guidance - As of September 30, 2025, cash and cash equivalents were $28 million, down from $36.2 million a year earlier [6] - In the first half of fiscal 2026, the company generated an operating cash flow of $273 million and free cash flow of $172 million [6] - For fiscal 2026, JKHY updated its GAAP revenue guidance to $2.508-$2.525 billion, an increase from the previous range of $2.49-$2.51 billion, with non-GAAP revenues estimated between $2.474-$2.491 billion [7] - The GAAP operating margin is expected to be between 24.3% and 24.5%, up from the previous guidance of 23.9%-24.1% [8] - Management anticipates GAAP earnings in the range of $6.61-$6.72 per share, an increase from the previous guidance of $6.38-$6.49 for fiscal 2026 [8]

Financial Data and Key Metrics Changes - The company reported record second quarter results with non-GAAP revenue of $611 million, an increase of 6.7% compared to the same quarter last year [5][21] - Non-GAAP operating margin was 25.1%, reflecting a margin expansion of 355 basis points year-over-year [6][25] - GAAP revenue increased by 8% for the quarter, while non-GAAP revenue increased by 7% for the quarter and 8% year-to-date [22][24] - Fully diluted GAAP earnings per share reached $0.72, up 29%, with a year-to-date GAAP earnings per share of $3.70, an increase of 24% [26][33] Business Line Data and Key Metrics Changes - Core segment non-GAAP revenue increased by 7% for the quarter, with operating margin increasing by five basis points [26] - Payment segment quarterly non-GAAP revenue increased by 6%, with significant growth in card-related services and faster payments [27] - Complementary segment quarterly non-GAAP revenue growth was 9%, reflecting strong demand for digital solutions and a beneficial product mix [27] Market Data and Key Metrics Changes - The number of financial institutions using Zelle grew by 22%, The Clearing House's RTP network by 26%, and FedNow by 32% [17] - Payment transaction volume through these channels increased by 49% year-over-year [17] - The company has relationships with over 80% of financial institutions in the U.S., enhancing its competitive position during market consolidation [9] Company Strategy and Development Direction - The company is focused on technology innovation, service excellence, and a people-first culture, which are key differentiators in the market [5] - Strategic initiatives include the development of cloud-native solutions like Tap2Local and Rapid Transfers, aimed at enhancing client offerings and attracting younger demographics [10][12] - The integration of Victor Technologies is progressing well, enhancing the company's embedded payments and banking-as-a-service capabilities [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand environment and robust sales pipeline, indicating confidence in continued growth [19][33] - The company anticipates that industry consolidation will remain neutral to slightly positive for its business, with ongoing opportunities arising from mergers and acquisitions [23][48] - Management highlighted the importance of AI in enhancing operational efficiency and product development, positioning the company favorably in the competitive landscape [42][66] Other Important Information - The company celebrated its 40th anniversary of being public and is preparing for its 50th anniversary of founding [19] - The company has increased its full-year guidance for GAAP revenue growth to a range of 5.6%-6.3% and non-GAAP revenue growth to 6.4%-7.1% [30][31] - Operating cash flow for Q2 was $153 million, a $63 million increase over the prior year [28] Q&A Session Summary Question: Expectations for Q3 sales results and impact from core consolidation news - Management noted that Q3 is starting off well, but it is too early to predict outcomes, emphasizing that Q2 results were minimally impacted by competitor announcements [36] Question: Changes in pricing for core systems and ancillary services - Management indicated that pricing has remained consistent over the past few years, with the recent wins demonstrating strong competitive positioning despite not being the lowest cost provider [38] Question: AI's impact on the business model - Management clarified that AI is being utilized to enhance technology development and operational efficiency, with a focus on integrating AI into new platform products [44][66] Question: Outlook on bank M&A and its impact on revenue - Management remains optimistic that bank M&A will be net neutral to positive, with ongoing opportunities arising from mergers and acquisitions [48] Question: Performance of revenue segments and expectations for the second half - Management expressed satisfaction with performance across all segments, noting that while the second half may present challenges, core and complementary segments are expected to continue performing well [53][56]

Financial Data and Key Metrics Changes - The company reported record second quarter results with non-GAAP revenue of $611 million, an increase of 6.7% compared to the same quarter last year [5][22] - Non-GAAP operating margin was 25.1%, reflecting a margin expansion of 355 basis points year-over-year [6][26] - GAAP revenue increased by 8% for the quarter, while non-GAAP revenue increased by 7% for the quarter and 8% year-to-date [22][26] - Fully diluted GAAP earnings per share reached $0.72, up 29%, with a year-to-date GAAP earnings per share of $3.70, an increase of 24% [26][33] Business Line Data and Key Metrics Changes - Core segment non-GAAP revenue increased by 7% for the quarter, with operating margin increasing by five basis points [26] - Payment segment non-GAAP revenue increased by 6%, with significant growth in card-related services and faster payments [26] - Complementary segment saw a 9% increase in non-GAAP revenue, with a healthy 58 basis points of margin expansion [26] Market Data and Key Metrics Changes - The number of financial institutions using Zelle grew by 22%, RTP network by 26%, and FedNow by 32% over the past year [17] - Payment transaction volume through these channels increased by 49% year-over-year [17] - The company has relationships with over 80% of financial institutions in the U.S., enhancing its competitive position during market consolidation [9] Company Strategy and Development Direction - The company is focused on technology innovation, service excellence, and a people-first culture, which are key differentiators in the market [5] - Strategic initiatives include the rollout of cloud-native solutions like Tap2Local and Rapid Transfers, aimed at enhancing client offerings and capturing market share [10][12] - The integration of Victor Technologies is progressing well, enhancing embedded payments and banking-as-a-service capabilities [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand environment and robust sales pipeline, indicating confidence in continued growth [19][33] - The company anticipates that industry consolidation will remain neutral to slightly positive for its business, with ongoing opportunities arising from mergers and acquisitions [23][48] - Management highlighted the importance of AI in enhancing operational efficiency and product development, positioning the company favorably in the competitive landscape [42][66] Other Important Information - The company celebrated its 40th anniversary of being public and is preparing for its 50th anniversary of founding [19] - The company has increased its full-year guidance for GAAP revenue growth to a range of 5.6%-6.3% and non-GAAP revenue growth to 6.4%-7.1% [30][31] - Operating cash flow for Q2 was $153 million, a $63 million increase over the prior year [28] Q&A Session Summary Question: Expectations for Q3 sales results and impact from core consolidation news - Management noted that Q3 is starting off well, but it is too early to predict if it will exceed Q2 results, with a growing pipeline of opportunities [36][37] Question: Changes in pricing for core systems and ancillary services - Management indicated that pricing has remained consistent over the last couple of years, with no significant changes due to competitive announcements [38] Question: AI's impact on the business model - Management emphasized that AI is being integrated into product development and operational efficiency, which is expected to enhance the company's competitive position [42][66] Question: Outlook on bank M&A and its impact - Management remains optimistic that bank M&A will be net neutral to positive, with opportunities arising from conversion merge activities [48] Question: Performance of revenue segments and expectations for the second half - Management reported strong performance across all segments, with expectations for some challenges in the payments segment in the second half [53][54] Question: Clarification on margin performance and medical insurance claims - Management acknowledged that lower medical insurance claims contributed to margin performance but does not expect this to continue in the second half [58][59] Question: Competitive dynamics in payments and card processing - Management noted that while new entrants are emerging, they have not disrupted the market significantly, and the company continues to see success in its solution offerings [74]

Financial Data and Key Metrics Changes - The company reported record second quarter results with non-GAAP revenue of $611 million, an increase of 6.7% compared to the same quarter last year [4] - Non-GAAP operating margin was 25.1%, reflecting a margin expansion of 355 basis points year-over-year [4][24] - GAAP revenue increased by 8% for the quarter, while non-GAAP revenue increased by 7% [19] - Fully diluted GAAP earnings per share reached $0.72, up 29% year-over-year [24] Business Line Data and Key Metrics Changes - Core segment non-GAAP revenue increased by 7% for the quarter, with operating margin increasing by five basis points [24] - Payment segment non-GAAP revenue grew by 6%, with significant growth in card-related services and faster payments [24] - Complementary segment non-GAAP revenue increased by 9%, reflecting strong demand for digital solutions [24] Market Data and Key Metrics Changes - The company has seen a 22% increase in the number of financial institutions using Zelle, a 26% increase in the RTP network, and a 32% increase in FedNow [15] - Payment transaction volume through these channels increased by 49% year-over-year [15] - The company has relationships with over 80% of financial institutions in the U.S., enhancing its market position during consolidation events [7] Company Strategy and Development Direction - The company is focusing on technology modernization and innovation, with a strong emphasis on cloud-native solutions and embedded payments [11][12] - The acquisition of Victor Technologies is progressing well, enhancing the company's capabilities in embedded payments and banking-as-a-service [11] - The company aims to leverage its technology to help financial institutions grow revenue and compete effectively in a consolidating market [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand environment and robust sales pipeline, indicating confidence in continued growth [17] - The company anticipates that the second half of fiscal 2026 will see lower non-GAAP revenue growth compared to the first half, primarily due to anticipated slower momentum in one-time revenue and card [28] - Management highlighted the importance of consistent execution and maintaining a people-first culture as key differentiators in the competitive landscape [4][17] Other Important Information - The company celebrated its 40th anniversary of being public and is preparing for its 50th anniversary of founding [17] - The company has increased its full-year guidance for GAAP revenue growth to a range of 5.6%-6.3% and non-GAAP revenue growth to 6.4%-7.1% [27][28] Q&A Session Summary Question: Expectations for Q3 sales results and impact from core consolidation news - Management noted that Q3 is starting off well, but it is too early to predict if results will exceed Q2 [32] Question: Changes in pricing for core systems and ancillary services - Management indicated that pricing has remained consistent over the last couple of years, with no significant changes due to recent announcements [34] Question: AI's impact on the business model - Management emphasized that AI is being utilized to enhance technology development and operational efficiency, but it is not a straightforward process [40][62] Question: Outlook on bank M&A and its impact - Management remains optimistic that bank M&A will be neutral to positive for the business, with opportunities arising from mergers [43] Question: Performance of different segments and expectations for the second half - Management expressed satisfaction with performance across all segments but anticipates challenges in the payments segment in the second half [50][51]

分组1 - Jack Henry reported quarterly earnings of $1.72 per share, exceeding the Zacks Consensus Estimate of $1.43 per share, and showing an increase from $1.34 per share a year ago, resulting in an earnings surprise of +20.28% [1] - The company achieved revenues of $619.33 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.64% and up from $573.85 million year-over-year [2] - Jack Henry has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] 分组2 - The stock has underperformed the market with a decline of about 1.8% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.47 on revenues of $613.23 million, and for the current fiscal year, it is $6.46 on revenues of $2.5 billion [7] 分组3 - The Computers - IT Services industry, to which Jack Henry belongs, is currently ranked in the top 40% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that tracking these revisions can be beneficial for investors [5] - Jack Henry holds a Zacks Rank 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6]

Core Insights - Jack Henry & Associates reported a higher second-quarter profit, attributed to strong demand for its banking technology offerings [1] Company Performance - The increase in profit indicates robust performance in the banking technology sector, reflecting a positive trend in demand for such services [1]

Core Insights - Jack Henry & Associates, Inc. reported strong financial results for the second quarter of fiscal year 2026, with GAAP revenue increasing by 7.9% and GAAP operating income rising by 29.4% compared to the same quarter in the previous fiscal year [5][13] - Non-GAAP adjusted revenue grew by 6.7% and non-GAAP adjusted operating income increased by 24.3% for the same period [5][13] - The company achieved a GAAP EPS of $1.72, reflecting a growth of 28.6% year-over-year [5][11] Financial Performance - For the fiscal three months ended December 31, 2025, total revenue was $619.3 million, up from $573.8 million in the prior year, marking a 7.9% increase [7][15] - For the fiscal six months ended December 31, 2025, total revenue reached $1.264 billion, a 7.6% increase from $1.175 billion in the same period last year [7][15] - The company’s operating income for the second quarter was $159.1 million, a 29.4% increase from $123.0 million in the prior year [10][15] Segment Performance - Core segment revenue increased by 8.4% in the second quarter, while payments segment revenue rose by 8.0% [9][12] - Complementary segment revenue grew by 9.6%, whereas corporate and other segment revenue decreased by 9.8% [9][12] - For the fiscal six months, core segment revenue increased by 4.2%, payments segment revenue by 8.5%, and complementary segment revenue by 9.9% [9][12] Guidance for Fiscal Year 2026 - The company provided guidance for fiscal year 2026, projecting GAAP revenue between $2.508 billion and $2.525 billion, with an operating margin of 24.3% to 24.5% [3][31] - Non-GAAP adjusted revenue is expected to be between $2.474 billion and $2.491 billion, with a growth rate of 6.4% to 7.1% [31][32] Cash Flow and Balance Sheet - Cash and cash equivalents stood at $28.2 million as of December 31, 2025, compared to $25.7 million a year earlier [5] - The company reported outstanding debt of $20 million at the end of December 2025, significantly reduced from $150 million a year prior [5]

Jack Henry & Associates (Nasdaq: JKHY) has introduced a transaction enrichment feature on its Banno Digital Platform. This new capability, developed through a strategic collaboration with Bud Financial, is designed to deliver sharper, more precise transaction details to users at community banks and credit unions. By refining raw transaction data into actionable insights, the solution promises to elevate the overall digital banking experience.At the core of this update is Bud’s Enrich technology, which repor ...