Jack Henry Fiscal Q1 EPS Rises 15.6% to $2.28 as Revenue Grows 8.8% to $701.5 Million
Jack Henry & Associates posted record fiscal first-quarter results, with earnings per share rising 15.6% to $2.28 as revenue grew 8.8% to $701.5 million on strength in cloud hosting, card processing and faster payments.
Net income increased 11.4% to $160.4 million for the quarter ended Sept. 30, 2026, up from $144.0 million a year earlier, according to the earnings release the Monett, Missouri-based bank technology provider furnished with an 8-K on Tuesday. Operating income rose 12.5% to $207.1 million.
"We continued our positive momentum in the first quarter of fiscal 2027, delivering record financial results that exceeded the outlook we provided in August," President and CEO Greg Adelson said in the release. "The demand environment remains very strong, as reflected in our outstanding sales performance and robust pipeline."
Where the growth came from
Services and support revenue grew 7.5% to $405.0 million, driven by an 11.7% increase in hosting revenue as new and existing clients continue migrating to Jack Henry's private cloud, the company said. Software usage revenue rose 9.9%, partly offset by the timing of its Connect conference, which moved to the second quarter this fiscal year.
Processing revenue climbed 10.7% to $296.6 million. Card revenue grew 9.4%, digital and transaction revenue rose 13.3% on more active users on its digital platform, and faster payments revenue jumped 43.8% on expanding transaction volumes.
Adjusted view
Excluding deconversion revenue and acquisition effects, non-GAAP adjusted revenue rose 7.2% to $682.2 million, and non-GAAP adjusted operating income grew 11.2% to $192.6 million. Chief Financial Officer Mimi Carsley said revenue growth and operating leverage produced a non-GAAP operating margin of 28.2% and return on invested capital of 23.2%.
Cost of revenue rose 7.9% to $376.0 million, reflecting higher personnel costs and cloud consumption costs, including AI and security spending, the company said.
Capital returns
Jack Henry repurchased $71 million of stock during the quarter at an average price of $153.47 per share and paid $42.8 million in dividends. It ended September with $25.4 million in cash and $85 million drawn on its credit facilities, up from $20 million a year earlier.
Fiscal 2027 guidance
For the fiscal year ending June 30, 2027, Jack Henry expects:
- GAAP revenue of $2.698 billion to $2.718 billion, growth of 6.0% to 6.8%
- GAAP operating margin of 24.7% to 24.9%
- GAAP EPS of $7.47 to $7.51
- Non-GAAP adjusted revenue of $2.667 billion to $2.687 billion, growth of 6.6% to 7.4%
- Non-GAAP adjusted operating margin of 24.1% to 24.3%
The guidance assumes no acquisitions or dispositions during the fiscal year.
By the numbers
- Revenue: $701.5 million, up 8.8%
- Diluted EPS: $2.28, up 15.6%
- Net income: $160.4 million, up 11.4%
- Processing revenue: $296.6 million, up 10.7%
- Faster payments revenue: up 43.8%
- Share repurchases: $71 million
Sources
- Jack Henry & Associates Form 8-K with fiscal first-quarter 2027 earnings release, filed Nov. 3, 2026 (accession 0000779152-26-000095)
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