Jack Henry (JKHY) has been on a downward spiral lately with significant selling pressure. After declining 14.9% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscil ...

Real-time financial crimes platform improves risk visibility, accelerates fraud investigations, strengthens member protection MONETT, Mo., Feb. 23, 2026 /PRNewswire/ -- ®Jack Henry (Nasdaq: JKHY) announced today that SELCO Community Credit Union (SELCO) is leveraging Jack Henry Financial Crimes Defenderâ"¢, the company's fraud and anti-money laundering (AML) solution designed with real-time capabilities, to modernize its defense strategy with greater efficiency across the organization. Founded in 1936 by a ...

Jack Henry's FIN takes the customer out of the middle, providing fintechs with direct access to Jack Henry's technical resources and test systems. FIN inclusion is not an endorsement of the fintech's product. ®About Jack Henry & Associates, Inc. FIN enables Celsior Technologies to integrate with [jXchangeâ"¢] â"¢' ATLANTA, Feb. 20, 2026 /PRNewswire/ -- Celsior Technologies, a global technology and workforce solutions provider specializing in digital transformation for regulated industries, today announced t ...

Core Insights - Software companies, particularly SaaS firms, are experiencing significant stock declines following the launch of Anthropic's AI tool, Claude Cowork, which aims to replace existing software solutions [1][2]. - The market reaction reflects a mix of overreaction and legitimate concerns regarding AI's potential to disrupt various software sectors [2][3]. Software Industry Analysis - Major software companies like Shopify, Monday.com, and Fastly have seen stock drops of 23%, 15%, and 16% respectively, indicating a broader trend of declining investor confidence in the sector [1]. - The software market is categorized into three groups: 1. Large, financially robust companies (e.g., Microsoft) that are less likely to be affected by AI disruptions. 2. Ecosystem companies that are critical to their customers' operations (e.g., Shopify). 3. Companies that provide niche solutions which could be easily replaced by AI alternatives (e.g., HubSpot, Atlassian) [1][2]. AI Impact on Software - The emergence of AI tools like Claude Cowork is seen as a pivotal moment, similar to last year's DeepSeek moment, raising questions about the sustainability of certain software companies [2]. - The ongoing trend suggests that while some software will be replaced by AI, mission-critical software is likely to remain resilient [2][3]. Job Market Insights - Recent job numbers indicate a decline in job openings to the lowest level since 2020, with layoffs peaking at levels not seen since January 2009, raising concerns about the overall economic health [8][9]. - Entry-level tech jobs are particularly affected, with AI contributing to this trend, although unemployment rates remain within historical averages [9][10]. Investment Opportunities - CrowdStrike (CRWD) is highlighted as a strong investment due to its essential cybersecurity services, which are unlikely to be replaced by AI [4]. - Toast (TOST) is noted for its entrenched position in the restaurant ecosystem, making it less vulnerable to AI disruption [5]. - Zscaler (ZS) is recognized for its potential growth in the cybersecurity market, driven by increasing AI technology demands [18]. - GoDaddy (GDDY) is considered undervalued, with a strong business model that combines software and physical infrastructure [19]. Company Performance Metrics - Powell Industries (POWL) reported a 63% increase in net new orders year-over-year, indicating strong demand in the industrial sector [17]. - Zscaler's stock has recently hit a 52-week low, presenting a potential buying opportunity in the cybersecurity space [18].

Core Insights - Blue Sky Bank has selected Jack Henry to enhance its banking capabilities and customer service through modern technology solutions [1] - The bank has experienced significant growth, increasing its assets from over $200 million in 2018 to $1.3 billion today [1] - Jack Henry's technology will support Blue Sky Bank's goal of providing personalized banking experiences while expanding into new territories [1] Company Overview - Blue Sky Bank, chartered in 1905, operates a 15-branch network across Oklahoma and Texas, with approximately 80% of its business focused on commercial banking [1] - The bank has recently launched a private banking division aimed at high-net-worth customers, offering a concierge-level service [1] - Jack Henry is a financial technology company that provides integrated solutions to financial institutions, emphasizing innovation and user-centric services [1] Technology and Innovation - Blue Sky Bank will implement Jack Henry's modern core processing platform and integrated digital solutions to improve customer experiences [1] - The Banno Digital Platform will allow retail customers to manage their accounts with self-service options while still having access to personal guidance [1] - For commercial clients, the bank will utilize LoanVantage and Treasury Management systems to streamline lending and management processes [1] Strategic Goals - The partnership with Jack Henry is aimed at positioning Blue Sky Bank for future growth by meeting evolving customer needs with a personalized approach [1] - The bank's focus on building strong IT fundamentals in efficiency, compliance, and cybersecurity has set the stage for this technological advancement [1] - Jack Henry's ongoing investment in research and development aligns with Blue Sky Bank's ambition to scale offerings and maintain innovation [1]

Core Insights - The Baron Financials ETF experienced a decline of 2.22% in the fourth quarter of 2025, underperforming the FactSet Global FinTech Index, which fell by 7.19%, but slightly trailing the MSCI USA Financials Index, which gained 2.07% [2][3][7] - Since its inception on December 31, 2019, the Fund has achieved an annualized return of 10.21%, outperforming the FinTech Index's 2.55% but lagging behind the Financials Index's 11.97% [2][3] Performance Overview - In the fourth quarter, the Fund's performance was driven by favorable stock selection within Information Services and an overweighting in Tech-Enabled Financials, while underexposure to banks negatively impacted relative performance [7][8] - The Fund's average weighting in banks was only 6%, which cost nearly 2 percentage points of relative performance against the Financials Index, where banks had a 38% weighting and were the top-performing industry [7][8] Sector Analysis - The Fund's holdings are segmented into various industries, with Capital Markets representing 31.7%, Information Services at 20.7%, and Payments at 17.4% as of December 31, 2025 [20][23] - The Fund has a significant overweight in Information Services and Capital Markets compared to the Financials Index, while being underweight in Banks and Insurance [20][21] Key Contributors and Detractors - Top contributors to the Fund's performance included Fair Isaac Corporation, S&P Global Inc., and Jack Henry & Associates, with Fair Isaac contributing 0.37% to returns due to strong quarterly results and positive fiscal guidance [12][13][14] - Major detractors included Robinhood Markets, which fell 0.93% due to a decline in customer engagement and cryptocurrency trading volumes, and MercadoLibre, which faced competitive pressures and margin concerns [16][17] Recent Activity - The Fund made significant net purchases in Morgan Stanley, Capital One Financial Corporation, and The Charles Schwab Corporation, focusing on firms with strong growth prospects and diversified revenue streams [25][31] - The Fund trimmed positions in Guidewire Software and Interactive Brokers to manage exposure to the volatile software sector and to fund purchases with better expected returns [32][33] Market Outlook - The macroeconomic environment is viewed as generally healthy, with stable credit trends and a low unemployment rate of 4.4% as of December 2025, supporting growth in the financial sector [34][35] - The Fund anticipates continued growth driven by favorable fiscal policies and easing monetary conditions, with expectations for two rate cuts in the upcoming year [35][36]

Core Viewpoint - Jack Henry & Associates, Inc. has announced a 6% increase in its quarterly dividend to $0.61 per share, reflecting its commitment to returning value to shareholders and maintaining a strong dividend history [1]. Group 1: Dividend Announcement - The Board of Directors has approved a quarterly dividend increase of 6% to $0.61 per share [1]. - The cash dividend is payable on March 25, 2026, to stockholders of record as of March 5, 2026 [1]. - Jack Henry has maintained consecutive quarterly dividends since 1991, marking 2025 as the 22nd consecutive year of increasing dividends [1]. Group 2: Company Overview - Jack Henry & Associates, Inc. is a financial technology company listed on the S&P 500, focusing on enhancing connections between financial institutions and their clients [2]. - The company has been providing technology solutions for nearly 50 years, enabling clients to innovate and compete effectively [2]. - Jack Henry serves approximately 7,400 clients, offering user-centric solutions that promote financial health [2].

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 - 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]