Upside case
Bull case
$205+43.2%
JKHY would need investors to value it at roughly 31x earnings — about 9x more generous than today's 21x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
Jack Henry & Associates, Inc. (JKHY) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
22
analysts
12 bullish · 0 bearish · 22 covering JKHY
Strong Buy
0
Buy
12
Hold
10
Sell
0
Strong Sell
0
Consensus Target
$204
+42.6% vs today
Scenario Range
$129 – $205
Model bear to bull value window
Coverage
22
Published analyst ratings
Valuation Context
21.3x
Forward P/E · Market cap $10.3B
JKHY price targets
Three scenarios for where JKHY stock could go
Current
~$143
Confidence
80 / 100
Updated
May 1, 2026
Where we are now
Current · $143
Bear
$129
Base
$177
Bull
$205
Market caseClosest to today
Base case
$177+23.7%
At 26x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$129-9.6%
If investor confidence fades or macro conditions deteriorate, a 2x multiple contraction could push JKHY down roughly 10% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Jack Henry & Associates, Inc.
JKHY · NASDAQTechnologyInformation Technology ServicesJune year-end
Jack Henry & Associates is a technology provider that delivers core banking software and payment processing solutions primarily to U.S. community banks and credit unions. It generates revenue through recurring software-as-a-service subscriptions — roughly 70% of total revenue — along with payment processing fees and professional services. The company's moat stems from its deep integration into client operations, high switching costs, and specialized expertise in serving the complex regulatory needs of financial institutions.
Market Cap
$10.3B
Revenue TTM
$2.5B
Net Income TTM
$507M
Net Margin
20.6%
JKHY Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
92%Exceptional
12 quarters tracked
Revenue Beat Rate
58%Exceptional
vs consensus estimates
Avg EPS Surprise
+7.8%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 4 of 4Q2 2025
EPS
$1.52/$1.37
Revenue
$585M/$587M
Q3 2025
EPS
$1.75/$1.58
Revenue
$615M/$605M
Q4 2025
EPS
$1.97/$1.71
Revenue
$645M/$636M
Q1 2026
EPS
$1.72/$1.43
Revenue
$619M/$610M
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $1.52/$1.37 | +10.9% | $585M/$587M | -0.4% |
| Q3 2025 | $1.75/$1.58 | +10.8% | $615M/$605M | +1.8% |
| Q4 2025 | $1.97/$1.71 | +15.2% | $645M/$636M | +1.4% |
| Q1 2026 | $1.72/$1.43 | +20.3% | $619M/$610M | +1.6% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$2.6B
+5.6% YoY
FY2
$2.8B
+7.2% YoY
EPS Outlook
FY1
$7.21
+3.0% YoY
FY2
$7.72
+7.0% YoY
Trailing FCF (TTM)$654M
FCF Margin: 26.5%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
JKHY beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
JKHY Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $2.3B
Product Mix
Latest annual revenue by segment or product family
Payments
38.2%
+6.8% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Segment breakdown not available for this company.
Payments is the largest disclosed segment at 38.2% of FY 2025 revenue, up 6.8% YoY.
JKHY Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Fairly Valued
Fair value est. $154 — implies +0.3% from today's price.
Upside to Fair Value
0.3%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
JKHY
22.9x
vs
S&P 500
25.2x
9% discount
vs Technology Trailing P/E
JKHY
22.9x
vs
Technology
27.5x
17% discount
vs JKHY 5Y Avg P/E
Today
22.9x
vs
5Y Average
34.0x
33% discount
Forward PE
21.3x
S&P 500
19.1x
+12%
Technology
21.7x
-2%
5Y Avg
—
—
Trailing PE
22.9x
S&P 500
25.2x
-9%
Technology
27.5x
-17%
5Y Avg
34.0x
-33%
PEG Ratio
2.27x
S&P 500
1.75x
+30%
Technology
1.47x
+55%
5Y Avg
—
—
EV/EBITDA
13.2x
S&P 500
15.3x
-13%
Technology
17.4x
-24%
5Y Avg
18.2x
-27%
Price/FCF
17.6x
S&P 500
21.3x
-18%
Technology
19.8x
-11%
5Y Avg
29.9x
-41%
Price/Sales
4.4x
S&P 500
3.1x
+39%
Technology
2.4x
+80%
5Y Avg
6.1x
-29%
Dividend Yield
1.58%
S&P 500
1.88%
-16%
Technology
1.18%
+34%
5Y Avg
1.18%
+33%
| Metric | JKHY | S&P 500 | Technology | 5Y Avg JKHY |
|---|---|---|---|---|
| Forward PE | 21.3x | 19.1x+12% | 21.7x | — |
| Trailing PE | 22.9x | 25.2x | 27.5x-17% | 34.0x-33% |
| PEG Ratio | 2.27x | 1.75x+30% | 1.47x+55% | — |
| EV/EBITDA | 13.2x | 15.3x-13% | 17.4x-24% | 18.2x-27% |
| Price/FCF | 17.6x | 21.3x-18% | 19.8x-11% | 29.9x-41% |
| Price/Sales | 4.4x | 3.1x+39% | 2.4x+80% | 6.1x-29% |
| Dividend Yield | 1.58% | 1.88% | 1.18% | 1.18% |
JKHY trades above S&P 500 benchmarks on 3 of 6 measured multiples — is elevated on some multiples, but competitive on others — a mixed valuation picture.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolJKHY Financial Health
Verdict
Exceptional
JKHY generates $654M in free cash flow at a 26.5% margin — 21.0% ROIC signals a durable competitive advantage · returns 1.9% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$2.5B
Revenue Growth
TTM vs prior year
+8.4%
Gross Margin
Gross profit as a share of revenue
43.8%
Operating Margin
Operating income divided by revenue
25.9%
Net Margin
Net income divided by revenue
20.6%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$7.01
Free Cash Flow (TTM)
Cash generation after capex
$654M
FCF Margin
FCF as share of revenue — the primary cash quality signal
26.5%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
21.0%
ROA
Return on assets, trailing twelve months
16.8%
Cash & Equivalents
Liquid assets on the balance sheet
$102M
Net Cash
Cash exceeds total debt — no net leverage
$102M
Debt Serviceability
Net debt as a multiple of annual free cash flow
Net cash ✓
ROE
Return on equity, trailing twelve months
23.8%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
1.9%
Dividend
1.6%
Buyback
0.3%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$35M
Dividend / Share
Annualized trailing dividend per share
$2.25
Payout Ratio
Share of earnings distributed as dividends
36.1%
Shares Outstanding
Declining as buybacks retire shares
72M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageJKHY Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Banking Sector Consolidation
The accelerating consolidation in the U.S. banking sector is significantly reducing JKHY's client base as smaller banks are acquired by larger institutions that often use competing systems. This trend has led to increased forecasted deconversion revenues from contracts, indicating a serious concern for future revenue stability.
High Risk
Fintech Competition
Fintech companies are increasingly capturing a larger share of new account growth compared to traditional banks, posing a substantial risk to JKHY's business model. A declining number of end-users in traditional institutions could lead to lower revenues from transaction processing in the long term.
Medium
Shrinking Customer Base
The ongoing consolidation of banks and credit unions has resulted in a decrease in the number of independent institutions, which could limit future revenue growth for JKHY. This shrinking customer base presents a challenge to maintaining and expanding market share.
Medium
Stagnant IT Spending
IT spending growth among banks and credit unions has been modest, averaging only 3% to 4% annually. This stagnation in IT budgets can hinder JKHY's growth prospects and limit opportunities for new business.
Medium
Regulatory and Security Risks
Heightened regulatory changes and risks associated with data security could negatively impact JKHY's profitability. Increased scrutiny from regulators may lead to additional compliance costs and operational challenges.
Lower
Valuation Risk
JKHY's current price-to-earnings (P/E) ratio is higher than its industry peers, indicating a potential valuation risk. A shift in market sentiment could lead to a reassessment of the stock's value, impacting investor confidence.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why JKHY Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Strong Financial Performance
Jack Henry has demonstrated robust financial results, including revenue growth of 6.7% year-over-year in its most recent quarter, with sales, EPS, and EBITDA exceeding analyst expectations. GAAP operating margins have increased significantly, reaching 25.7%, and non-GAAP revenue growth has been reported at 7% year-over-year.
Reliable Growth and Fundamentals
The company is characterized by reliable, steady growth in the financial technology sector, with a consistent 7%+ annual revenue growth rate and no signs of a slowdown. Its earnings have grown by 25.2% over the past year, and analysts project earnings to grow by 4.75% annually.
Strategic Investments and Product Development
Jack Henry is investing in cloud-based platforms and has product wins like the Banno Digital Platform and Financial Crimes Defender, which are crucial for maintaining technological competitiveness and supporting transaction-driven growth. Cloud revenue has seen an 11% year-over-year increase, now constituting 32% of total revenue.
Dividend and Shareholder Returns
The company offers a reliable dividend of 1.62% and has a history of consistent dividend increases, with a recent raised quarterly dividend to $0.61.
Market Position and Competitive Landscape
Jack Henry serves regional and community financial institutions with its banking technology and payment platforms. The company's ability to keep its technology competitive is a key factor, and some analysts believe the stock may be undervalued relative to fair value estimates.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
JKHY Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$142.88
52W Range Position
2%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$141.81
+0.8% from the low
52-Week High
$193.39
-26.1% from the high
1 Month
-9.63%
3 Month
-17.58%
YTD
-19.9%
1 Year
-16.9%
3Y CAGR
-2.5%
5Y CAGR
-2.0%
10Y CAGR
+5.5%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
JKHY vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
21.3x
vs 13.2x median
+62% above peer median
Revenue Growth
+5.6%
vs +1.1% median
+435% above peer median
Net Margin
20.6%
vs 14.4% median
+43% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
JKH JKHY Jack Henry & Associates, Inc. | $10.3B | 21.3x | +5.6% | 20.6% | Buy | +42.6% |
FIS FIS Fidelity National Information Services, Inc. | $23.8B | 7.3x | +14.7% | 3.5% | Buy | +46.6% |
FIS FISV Fiserv, Inc. | $30.0B | 6.9x | -1.3% | 15.2% | Buy | +33.0% |
NTR NTRS Northern Trust Corporation | $30.3B | 15.1x | -20.3% | — | Hold | -5.8% |
CSL CSL Carlisle Companies Incorporated | $15.3B | 17.8x | +1.1% | 14.6% | Buy | +9.3% |
PCT PCTY Paylocity Holding Corporation | $5.5B | 13.2x | +12.5% | 14.2% | Buy | +63.9% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
JKHY Dividend and Capital Return
JKHY returns 1.9% total yield, led by a 1.58% dividend, raised 32 consecutive years.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
1.9%
Dividend + buyback return per year
Buyback Yield
0.3%
Dividend Yield
1.58%
Payout Ratio
36.1%
How JKHY Splits Its Return
Div 1.58%
Dividend 1.58%Buybacks 0.3%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.25
Growth Streak
Consecutive years of dividend increases
32Y
3Y Div CAGR
5.8%
5Y Div CAGR
6.2%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$35M
Estimated Shares Retired
245.3K
Approx. Share Reduction
0.3%
Shares Outstanding
Current diluted share count from the screening snapshot
72M
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.61 | — | — | — |
| 2025 | $2.32 | +5.5% | 0.3% | 1.5% |
| 2024 | $2.20 | +5.8% | 0.2% | 1.5% |
| 2023 | $2.08 | +6.1% | 0.2% | 1.4% |
| 2022 | $1.96 | +6.5% | 1.5% | 2.5% |
FAQ
7 questionsJKHY Investor Questions
Common questions answered from live analyst data and company financials.
01Is Jack Henry & Associates, Inc. (JKHY) stock a buy or sell in 2026?
Jack Henry & Associates, Inc. (JKHY) is rated Buy by Wall Street analysts as of 2026. Of 22 analysts covering the stock, 12 rate it Buy or Strong Buy, 10 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $204, implying +42.6% from the current price of $143. The bear case scenario is $129 and the bull case is $205.
02What is the JKHY stock price target for 2026?
The Wall Street consensus price target for JKHY is $204 based on 22 analyst estimates. The high-end target is $220 (+54.0% from today), and the low-end target is $183 (+28.1%). The base case model target is $177.
03Is Jack Henry & Associates, Inc. (JKHY) stock overvalued in 2026?
JKHY trades at 21.3x times forward earnings. The stock's valuation is broadly in line with the broader market. Based on current multiples versus the peer group, the relative model signals fairly valued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Jack Henry & Associates, Inc. (JKHY) stock in 2026?
The primary risks for JKHY in 2026 are: (1) Banking Sector Consolidation — The accelerating consolidation in the U. (2) Fintech Competition — Fintech companies are increasingly capturing a larger share of new account growth compared to traditional banks, posing a substantial risk to JKHY's business model. (3) Shrinking Customer Base — The ongoing consolidation of banks and credit unions has resulted in a decrease in the number of independent institutions, which could limit future revenue growth for JKHY. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Jack Henry & Associates, Inc.'s revenue and earnings forecast?
Analyst consensus estimates JKHY will report consensus revenue of $2.6B (+5.6% year-over-year) and EPS of $7.21 (+3.0% year-over-year) for the upcoming fiscal year. The following year, analysts project $2.8B in revenue.
06When does Jack Henry & Associates, Inc. (JKHY) report its next earnings?
A confirmed upcoming earnings date for JKHY is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Jack Henry & Associates, Inc. generate?
Jack Henry & Associates, Inc. (JKHY) generated $654M in free cash flow over the trailing twelve months — a free cash flow margin of 26.5%. JKHY returns capital to shareholders through dividends (1.6% yield) and share repurchases ($35M TTM).