Jack Henry reported record FY26 results with strong revenue growth, margin expansion, and record core wins, particularly among larger institutions. Management provided upbeat FY27 guidance and expressed optimism about continued market share gains and new growth initiatives like AI and payment innovations. Record FY26: non-GAAP revenue up 7% to $2.5B, operating margin up 92bps to 24%.
Jack Henry reported record FY26 results with strong revenue growth, margin expansion, and record core wins, particularly among larger institutions. Management provided upbeat FY27 guidance and expressed optimism about continued market share gains and new growth initiatives like AI and payment innovations. Record FY26: non-GAAP revenue up 7% to $2.5B, operating margin up 92bps to 24%.
Record new sales momentum: 58 competitive core wins in FY26 (up from 51), 59% of those were trifecta deals, and FY27 guidance implies 58-65 wins. Pipeline robust; first month of Q1 already exceeded prior year's first-quarter wins, with larger institutions increasingly choosing…
Guidance · revenue to 6.8%
Management emphasized AI as a key differentiator, with 22 AI-enabled products in the market and 20+ capabilities planned over the next six months, plus internal use driving efficiency gains. Monetization is largely indirect, enhancing product attach and adoption, while…
Record new sales momentum: 58 competitive core wins in FY26 (up from 51), 59% of those were trifecta deals, and FY27 guidance implies 58-65 wins. Pipeline robust; first month of Q1 already exceeded prior year's first-quarter wins, with larger institutions increasingly choosing…
Management emphasized AI as a key differentiator, with 22 AI-enabled products in the market and 20+ capabilities planned over the next six months, plus internal use driving efficiency gains. Monetization is largely indirect, enhancing product attach and adoption, while AI-related costs are being carefully managed.
Record new sales momentum: 58 competitive core wins in FY26 (up from 51), 59% of those were trifecta deals, and FY27 guidance implies 58-65 wins. Pipeline robust; first month of Q1 already exceeded prior year's first-quarter wins, with larger institutions increasingly choosing Jack Henry.
Fiscal 2027 margin guidance reflects headwinds from increased cyber and infrastructure investments, including frontier models, AI innovation, and the data center consolidation project EC 2030. These investments are planned and are a reason for the conservative margin guidance of 20-40 bps expansion.
Management expressed strong confidence in record sales, pipeline momentum, and a positive FY27 outlook, while highlighting record financials and strategic successes.
These investments are a deliberate margin headwind, though guidance still assumes margin expansion.
“Increasing cyber and infrastructure investments related to front-tier models, AI innovation, and our data center consolidation project, EC 2030, will pressure margins in fiscal 27.”
“We're anticipating to do as good or better this year, you know, somewhere in the 58 to 65 range is kind of where we think our core win total will be this year.”
“in addition to the 15 competitive core wins in Q4, we also secured 13 on-premise to private cloud contracts, including seven institutions over $1 billion.”
“we are very close and probably will be announcing... the signing of a Bano outside the base deal... we have sold a client that is going to use Bano and the Jack Henry platform... they're not connected with any of the Jack Henry cores today.”
“60% of our sales were new contracts in fiscal year 26, up from 45% the prior year.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2027 | $7.33–$7.38 | $7.36 | INITIATED |
| Op margin | FY2027 | 0.2%–0.4% | 0.3% | INITIATED |
| Revenue | FY2027 | 6.3%–7.3% | 6.8% | INITIATED |
Deepening partnership to co-develop AI security platform; validates Google Cloud's enterprise AI push in regulated industries.
“We announced our expanded collaboration with Google Cloud to provide AI-driven security capabilities for banks and credit unions.”
… Rankings. This is particularly meaningful because most companies on that list are smaller, specialized fintechs. This recognition reflects both the strength of our culture and the innovation we continue to deliver for our clients. Our commitment to innovation remains a key differentiator for Jack Henry, and during the fourth quarter, we built on our momentum through several important advancements, starting with artificial intelligence. We announced our expanded collaboration with Google Cloud to provide AI-driven security capabilities for banks and credit unions. Building on our four-year strategic partnership, we will use Google's Agenic Defense products to develop a proprietary AI security platform to strengthen cyber resilience for financial institutions and help them defend against emerging threats. We also joined Project Glasswing, Anthropic's collaborative cybersecurity initiative. Together, these efforts reflect our ongoing commitment to leveraging advanced technologies to help financial institutions operate securely in an increasingly complex threat environment. In addition to cybersecurity, we are bringing creative AI capabilities directly into the solutions that …
Participation in Anthropic's cybersecurity initiative signals growing enterprise adoption and credibility for Anthropic's models.
“We also joined Project Glasswing, Anthropic's collaborative cybersecurity initiative.”
… our momentum through several important advancements, starting with artificial intelligence. We announced our expanded collaboration with Google Cloud to provide AI-driven security capabilities for banks and credit unions. Building on our four-year strategic partnership, we will use Google's Agenic Defense products to develop a proprietary AI security platform to strengthen cyber resilience for financial institutions and help them defend against emerging threats. We also joined Project Glasswing, Anthropic's collaborative cybersecurity initiative. Together, these efforts reflect our ongoing commitment to leveraging advanced technologies to help financial institutions operate securely in an increasingly complex threat environment. In addition to cybersecurity, we are bringing creative AI capabilities directly into the solutions that our clients use every day. A great example is within our financial crimes defender platform, where we are using AI to streamline the labor-intensive process of drafting summaries for suspicious activity reports, or SARs. Once an investigation wraps up and an AI-driven summary is generated for review while keeping the fraud investigator in full control, …
Being part of the OpenUSD consortium, alongside MasterCard and Visa, supports the legitimacy and potential adoption of stablecoin infrastructure.
… development cycles. The impact is meaningful and expanding. Engineering teams are doubling productivity through AI-assisted development workflows. Operations teams are reducing recurring reporting processes from days to hours. and analysts are cutting research and document creation from hours to minutes. Beyond AI, we are also advancing next generation money movement capabilities for financial institutions. In Q4, we announced that we are part of OpenUSD, a new stablecoin for global money movement backed by over 140 leading financial companies, including BlackRock, MasterCard and Visa. We will begin integrating OpenUSD when it launches later this year. This complements the work we are doing in beta testing for send and receive USDC capabilities. Together, these solutions will provide our clients access to additional capabilities such as cross-border and treasury payments. Additionally, we are seeing strong momentum across our newest solutions, including our tap-to-local SMB merchant payment and rapid transfers digital money movement offerings. Since our last earnings call, we've added tap-to-local for over 200 banks and credit unions bringing the total number to more than 900. …