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JKHY
FY2026 Q1
Raised
Jack Henry & Associates, Inc. earnings call
Buzzberg read
Q1 non-GAAP revenue up 8.7%, beating guidance
Jack Henry reported strong Q1 FY26 results, with record revenue and significant margin expansion. The company is benefiting from cloud migrations, new products, and strong demand, leading to raised full-year guidance. Management highlighted partnerships with Visa, Mastercard, and others for new payment solutions. Record Q1 non-GAAP revenue of $636M (+8.7% YoY) and non-GAAP operating margin expansion of 227 bps to 27.2%.
Buzzberg read Q1 non-GAAP revenue up 8.7%, beating guidance Jack Henry reported strong Q1 FY26 results, with record revenue and significant margin expansion. The company is benefiting from cloud migrations, new products, and strong demand, leading to raised full-year guidance. Management highlighted partnerships with Visa, Mastercard, and others for new payment solutions. Record Q1 non-GAAP revenue of $636M (+8.7% YoY) and non-GAAP operating margin expansion of 227 bps to 27.2%. Read full analysisCollapse analysis
Jack Henry reported strong Q1 FY26 results, with record revenue and significant margin expansion. The company is benefiting from cloud migrations, new products, and strong demand, leading to raised full-year guidance. Management highlighted partnerships with Visa, Mastercard, and others for new payment solutions. Record Q1 non-GAAP revenue of $636M (+8.7% YoY) and non-GAAP operating margin expansion of 227 bps to 27.2%.
- Raised FY26 non-GAAP revenue growth guidance to 6%-7% and margin expansion to 30-50 bps, citing strong momentum.
- Signed 7 private cloud migration contracts, with 77% of core clients now in the private cloud.
- Launched new SMB payment products like 'Tap to Local' and 'Rapid Transfers' in partnership with Visa and MasterCard, expanding capabilities.
Revenue$0.6447BReported
EPS$1.97Reported
Gross margin45.94%Reported
Operating margin28.55%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Cloud
Cloud migrations mix shifts to larger clients
Sales
New sales mix improves to 44% new core sales
Show 3 more callouts
Payments
Faster payment volumes surge 55% year-over-year
Acquisitions
Victor acquisition accelerates payments-as-a-service
AI
AI use cases help control headcount growth
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $0.6447B | Reported |
| EPS | $1.97 | Reported |
| Gross margin | 45.94% | Reported |
| Operating margin | 28.55% | Reported |
| Free cash flow | $0.1117B | Reported |
| Capex | $0.0089B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $6.38–$6.49Above consensus | $6.44 | Raised |
| Free cash flow | FY2026 | 85%–100% | 92.5% | Maintained |
| Operating margin | FY2026 | 30%–50%Above consensus | 40% | Raised |
| Revenue | FY2026 | 6%–7%Above consensus | 6.5% | Raised |
AI, capex & demand read
Management read
Upbeat
Management expressed strong optimism, citing record Q1 results, increased guidance, and enthusiasm for new products and pipeline.
Management AI read
Management discussed over 100 internal AI use cases that have helped control headcount additions, and noted new solutions are built with a human-in-the-loop approach, with early feedback positive.
all 3 named companies below
Companiesreturns since call
Partners
Partners
Greg Adelson
Management is using Visa's debit rail network to launch its Rapid Transfers product, indicating a deepening partnership that could drive incremental transaction volume for Visa.
Evidence
“We are collaborating with both Visa and MasterCard to facilitate these transactions through their respective debit rails.”
Supply chain
ANDURIL
Supply chain
Greg Adelson
The mention of USDC (a stablecoin) is related to blockchain technology, and it is inaccurate to associate this with Anduril, a defense company. This is a false association and should be disregarded.
Evidence
“We just completed a proof of concept in less than two weeks to allow financial institutions to send and receive USDC.”
External signals
Supply-chain alpha · 2returns since call
The shift of the Connect Client Conference into Q1 positively impacted revenue growth by roughly 1%, masking underlying growth.
Evidence
“Non-gap revenue growth was positively impacted by the shift of our Connect Client Conference into Q1 from Q2. Even without this timing shift, quarterly revenue growth would have been a robust 8%.”
The increase in deconversion revenue is a result of industry consolidation, which is a headwind for the company's future growth.
Evidence
“First quarter deconversion revenue of approximately $9 million, which we previously announced was up approximately $5 million, reflecting a steady pace of M&A activity among financial institutions.”
Methodology & coverage
Management-only analysis. All 3 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.