Keefe, Bruyette & Woods maintains Jack Henry & Associates at Outperform, raises price target to $215 from $200

Jack Henry & Associates (JKHY) reported Q1 2027 revenue growth deceleration to 5% and operating margin contraction. The company reiterated non-GAAP margin expansion guidance of 20-40 basis points, citing headwinds from medical costs and cybersecurity investments. R&D expenses rose 17% GAAP, pressuring margins. Management discussed growth levers, including payments strength, cloud adoption, and fraud prevention. Core wins remain strong, but near-term growth trends may be uneven.

Jack Henry (JKHY) reported Q1 2027 earnings exceeding expectations, with 28% non-GAAP operating margin, up 102 basis points YoY. The company secured nine competitive core wins, double the prior year, and saw strong client engagement at its largest-ever conference. Key growth areas include Gladiator security solutions, AI-enabled products, and Tap2Local merchant payments. The company remains optimistic about its fiscal year 2027 outlook.

Jack Henry & Associates (JKHY) reported Q1 revenue growth in cloud services (11%) and payments (11%), with recurring revenue at 93%. Demand for cybersecurity and AI products increased, with 367 Gladiator solutions sold. The company expects to launch more AI offerings and consulting services. Transaction volumes for Zelle, RTP, and FedNow rose 42% YoY. Non-GAAP margins improved, with operating cash flow up 34% to $161M. JKHY reaffirmed its full-year margin expansion and free-cash-flow outlook.

Jack Henry (JKHY) reported Q3 CY2026 revenue of $701.5M, exceeding estimates by 4.2% and growing 10.3% YoY. Pre-tax profit was $210.6M (30% margin), with EPS of $2.28, beating estimates by 10.1%. The company raised its full-year revenue guidance to $2.71B and EPS guidance to $7.49, a 1.1% beat.

Jack Henry & Associates (JKHY) reported Q1 EPS of $2.28, beating estimates by $0.22, with revenue at $701.55M, exceeding expectations. The company raised FY 2027 guidance, projecting EPS of $7.47-$7.51 and revenue of $2.70B-$2.72B. Shares closed at $161.66, up 3.66% over 3 months.

Jack Henry & Associates reported fiscal Q1 2027 revenue of $701.5M, up 8.8% YoY, with net income of $160.4M. Operating income rose 12.5%, and EPS increased to $2.28. The company raised its full-year outlook, forecasting GAAP revenue of $2.7B to $2.72B. Growth was driven by client demand, cloud migrations, and card services.