Core Insights - Jack Henry & Associates reported a strong first-quarter fiscal 2026, with GAAP earnings of $1.97 per share, exceeding estimates by 20.1% and showing a year-over-year increase of 20.9% [2] - The company's stock has appreciated approximately 10.2% since the last earnings report, outperforming the S&P 500 [1] Financial Performance - Non-GAAP revenues for the first quarter were $636.1 million, an increase of 8.7% year over year, after adjusting for deconversion revenues of $8.6 million [2] - Service and Support revenues, accounting for 58.5% of total revenues, reached $376.8 million, up 5.7% year over year, although this figure fell short of the consensus estimate of $379 million [3] - Processing revenues, which represent 41.5% of total revenues, were $267.9 million, reflecting a 9.7% year-over-year growth and surpassing the consensus estimate of $257 million [4] - Core segment revenues increased by 0.5% year over year to $195.3 million, while Payments revenues rose 9% year over year to $230.9 million [5] Profitability Metrics - Adjusted EBITDA for the first quarter was $225 million, a 14.6% increase year over year, with an adjusted EBITDA margin of 34.9%, expanding by 220 basis points [6] - Adjusted operating income increased by 18.6% year over year to $173.2 million, with an adjusted operating margin of 27.2%, also up by 220 basis points [6] Balance Sheet and Cash Flow - As of September 30, 2025, the company's cash and cash equivalents stood at $36.2 million, down from $102 million as of June 30, 2025 [7] Guidance and Outlook - For fiscal 2026, Jack Henry updated its GAAP revenue guidance to a range of $2.51-$2.49 billion, an increase from the previous guidance of $2.50-$2.48 billion [8] - The anticipated GAAP operating margin is now between 24.1% and 23.9%, slightly adjusted from the previous guidance of 24.2%-24% [9] - The stock currently holds a Zacks Rank 3 (Hold), indicating an expectation of an in-line return in the coming months [13]

Core Insights - Jack Henry & Associates reported Q4 fiscal 2025 GAAP earnings of $1.75 per share, exceeding estimates by 19.9% and showing a year-over-year increase of 26.4% [2] - Revenues for the same quarter reached $615.4 million, surpassing estimates by 1.6% and reflecting a 9.9% year-over-year growth [2] - Adjusted EBITDA for Q4 was $189.2 million, up 10.9% year over year, with an adjusted EBITDA margin of 31.8%, an increase of 100 basis points [6] Revenue Breakdown - Service and Support revenues accounted for 57.1% of total revenues, totaling $351.2 million, a 10.9% increase year over year [3] - Processing revenues made up 42.9% of total revenues, amounting to $264.1 million, an 8.6% year-over-year growth [4] - Core segment revenues were $189.7 million, up 10.3% year over year, while Payments revenues reached $229.3 million, increasing by 7.9% [5] Financial Guidance - For fiscal 2026, Jack Henry has set GAAP revenue guidance between $2.50 billion and $2.48 billion, with non-GAAP revenues expected to be between $2.48 billion and $2.46 billion [8] - The anticipated GAAP operating margin is between 24.2% and 24%, while the adjusted operating margin is expected to range from 23.6% to 23.4% [8] Market Performance - Over the past month, Jack Henry's shares have declined by approximately 2.5%, underperforming the S&P 500 [1] - Estimates for the company have trended downward recently, indicating a potential shift in market sentiment [10][12] Industry Context - Jack Henry operates within the Zacks Computers - IT Services industry, where Serve Robotics Inc. has recently reported a revenue increase of 36.2% year over year [13] - Serve Robotics Inc. has a Zacks Rank of 4 (Sell), contrasting with Jack Henry's Zacks Rank of 3 (Hold), suggesting differing market perceptions within the same industry [14]