Jack Henry shares jump 10.7% after fiscal Q1 profit tops estimates

Jack Henry (JKHY) said on Nov. 3 that its GAAP diluted earnings per share for the fiscal first quarter rose to $2.28 from $1.97 a year earlier, topping the $2.10 consensus estimate. GAAP revenue rose 8.8% to $701.55 million for the quarter ended Sept. 30.

Shares rose 10.7% in regular trading as of 3:59 p.m. ET on Nov. 4, from a regular-session close of $161.66.

Here's how the company did:

• GAAP diluted EPS: $2.28 vs. $1.97 a year earlier, against $2.10 expected
• GAAP revenue: $701.55 million vs. $644.74 million a year earlier, against $697.05 million expected
• Adjusted revenue: $682.18 million vs. $636.11 million a year earlier

Adjusted revenue, which excludes deconversions and a recent acquisition, missed the $697.05 million consensus estimate.

President and CEO Greg Adelson said the company delivered "record financial results that exceeded the outlook we provided in August."

Key revenue, the sum of cloud services and processing revenue, rose 11.0% to $514.29 million, the company said in its press release.

Fiscal 2027 guidance

The company expects GAAP revenue of $2.70 billion to $2.72 billion for fiscal 2027, which ends June 30, 2027. It expects GAAP EPS of $7.47 to $7.51 for the year.

Adjusted revenue is forecast at $2.67 billion to $2.69 billion. The company said the full-year guidance assumes no acquisitions or dispositions.

Costs and cash

Operating income rose 12.5% to $207.07 million. Cost of revenue rose 7.9%, the company said, on higher personnel costs and cloud consumption costs, including artificial intelligence and security costs.

Research and development expense rose 16.6% over the same period.

Net income has fallen in each of the last three quarters, from $144.0 million in the first quarter of fiscal 2026 to $111.2 million in the fourth quarter of fiscal 2026, according to its SEC filings.

The company spent $71 million on stock repurchases in the quarter at an average price of $153.47 per share. Debt outstanding under its credit facilities was $85 million at Sept. 30, compared with $20 million a year earlier.