Key Highlights

  • GAAP Revenue rose 8.8% to USD 701.5 million, and GAAP Operating Income rose 12.5% in the fiscal first quarter.
  • GAAP EPS rose 15.6% to USD 2.28, and non-GAAP adjusted revenue rose 7.2% with adjusted operating income up 11.2%.
  • Processing revenue grew 10.7% to USD 296.6 million, driven by faster payments revenue growth of 43.8%.
  • Fiscal 2027 guidance is revenue of USD 2,698 to 2,718 million and GAAP EPS of USD 7.47 to USD 7.51.

Record First Quarter

Jack Henry & Associates, Inc. (NASDAQ:JKHY), a financial technology provider based in Monett, Missouri, reported fiscal first-quarter 2027 results for the quarter ended September 30, 2026. GAAP revenue was USD 701.5 million, up 8.8% from USD 644.7 million, and GAAP operating income rose 12.5%. GAAP Net Income rose 11.4%, EBITDA rose 10.2%, and GAAP Earnings per diluted share were USD 2.28 compared with USD 1.97.

Non-GAAP adjusted revenue rose 7.2%, and non-GAAP adjusted operating income rose 11.2%. President and Chief Executive Officer Greg Adelson said the quarter delivered record financial results that exceeded the outlook provided in August, and that the Demand environment continues.

Analyst estimates were EPS of USD 2.07 against reported EPS of USD 2.28, and revenue of USD 685.5 million against reported revenue of USD 701.5 million.

Revenue Mix

Services and support revenue was USD 405.0 million, up 7.5%, and was 57.7% of revenue. Processing revenue was USD 296.6 million, up 10.7%, and was 42.3% of revenue. Hosting revenue grew 11.7% as new and existing clients adopted hosted solutions, and faster payments revenue rose 43.8% on expanding transaction volumes.

By segment, core revenue increased 7.1%, payments increased 9.2%, complementary increased 10.4% and corporate services increased 6.2%. The gap between GAAP revenue growth of 8.8% and adjusted growth of 7.2% is 1.6 points, which reflects items excluded from the non-GAAP measure such as deconversion revenue.

Balance Sheet and Repurchases

Cash and cash equivalents were USD 25.4 million versus USD 36.2 million a year earlier, and Debt outstanding under Credit facilities was USD 85 million versus USD 20 million. Stock repurchases in the quarter were USD 71 million at an average price of USD 153.47 per share.

Trade receivables were USD 346 million versus USD 308 million a year earlier, deferred revenue was USD 333 million versus USD 321 million, and stockholders' Equity was USD 2,100 million versus USD 2,173 million.

Fiscal 2027 Guidance

For the fiscal year ending June 30, 2027, the company guided GAAP revenue of USD 2,698 million to USD 2,718 million, Operating Margin of 24.7% to 24.9% and EPS of USD 7.47 to USD 7.51. Non-GAAP adjusted revenue is guided at USD 2,667 million to USD 2,687 million with an adjusted operating margin of 24.1% to 24.3%. The guidance assumes no acquisitions or dispositions during the year, and the non-GAAP figures exclude deconversion revenue and related expenses, Acquisition effects and gains on assets.

Hosting and faster payments growth, the operating margin against the guided range and borrowing levels after the Buybacks are the items to follow through the remaining three quarters of the fiscal year.