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Sep 30
Jack Henry Q1 2026 Earnings Report
Jack Henry reported solid Q1 2026 results with strong revenue growth, improved margins, and higher earnings per share.
Key Takeaways
Jack Henry began FY2026 with strong momentum, posting 7.3% revenue growth and a 21.7% increase in GAAP operating income. The company also saw significant improvements in non-GAAP earnings metrics and maintained a robust cash position despite major investments in acquisitions and software.
Revenue grew 7.3% year-over-year to $644.7 million in Q1 2026.
GAAP EPS rose to $1.97, up from $1.63 a year ago.
Free cash flow reached $69.5 million, reflecting strong operating leverage.
Return on Average Shareholders' Equity increased to 23.5% from 22.3%.
Jack Henry
Jack Henry
Jack Henry Revenue by Segment
Jack Henry Revenue by Geographic Location
Revenue by Segment
Core Revenue
CapyFin.comPayments Revenue
CapyFin.comComplementary Revenue
CapyFin.comCorporate and Other Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
Jack Henry expects to achieve 6.0%–7.0% non-GAAP adjusted revenue growth and improve operating margins through continued efficiency and technology investments.
Positive Outlook
- FY26 GAAP revenue guidance: $2.491B to $2.514B.
- FY26 GAAP EPS guidance: $6.38 to $6.49.
- Adjusted operating income growth expected at 7.4% to 9.3%.
- Free cash flow conversion targeted near 85–100% range long-term.
- Recent acquisition of Victor Technologies expected to enhance fintech capabilities.
Challenges Ahead
- Lower cash position compared to prior year due to acquisition and stock buybacks.
- Q1 deconversion revenues and gains on asset sales are excluded from forward outlook.
- Amortization and software investments continue to weigh on reported cash flows.
- Slight decline in R&D expense may reflect tighter cost management rather than innovation acceleration.
- Q1 decline in interest income YoY (-14.5%) may affect net other income trends.
Revenue & Expenses
Visualization of income flow from segment revenue to net income