GAAP revenue increased 8.7% and GAAP operating income increased 11.8% for the fiscal three months ended March 31, 2026, compared to the prior fiscal year quarter.
Non-GAAP adjusted revenue increased 7.3% and non-GAAP adjusted operating income increased 7.3% for the fiscal three months ended March 31, 2026, compared to the prior fiscal year quarter.1
GAAP EPS was $1.71 per diluted share for the fiscal three months ended March 31, 2026, compared to $1.52 per diluted share in the prior fiscal year quarter representing growth of 12.2%.
Stock repurchases for the fiscal three months ended March 31, 2026, were $159 million at an average of $162 per share.
Fiscal year-to-date summary:
GAAP revenue increased 8.0% and GAAP operating income increased 20.6% for the fiscal year-to-date period ended March 31, 2026, compared to the prior fiscal year-to-date period.
Non-GAAP adjusted revenue increased 7.6% and non-GAAP adjusted operating income increased 16.7% for the fiscal year-to-date period ended March 31, 2026, compared to the prior fiscal year-to-date period.1
GAAP EPS was $5.41 per diluted share for the fiscal year-to-date period ended March 31, 2026, compared to $4.49 per diluted share in the prior fiscal year-to-date period representing growth of 20.4%.
Cash and cash equivalents were $20.6 million at March 31, 2026, and $39.9 million at March 31, 2025.
Debt outstanding for credit facilities was $90 million at March 31, 2026, and $170 million at March 31, 2025.
Stock repurchases for fiscal year-to-date period ended March 31, 2026, were $284 million at an average of $160 per share.
Full year fiscal 2026 guidance (Dollars in millions):3
Current
GAAP
Low
High
Revenue
$2,521
$2,533
Operating margin4
24.7 %
24.9 %
EPS
$6.78
$6.87
Non-GAAP5
Adjusted revenue
$2,479
$2,491
Adjusted operating margin
23.9 %
24.1 %
MONETT, Mo., May 5, 2026 /PRNewswire/ -- Jack Henry & Associates, Inc. (NASDAQ:JKHY), a leading financial technology provider, today announced results for fiscal third quarter ended March 31, 2026.
1 See tables below on page 4 reconciling non-GAAP financial measures to GAAP.
2See table below on page 14 reconciling net income to non-GAAP EBITDA.
3 The full fiscal year guidance assumes no additional acquisitions or dispositions will be made during fiscal year 2026.
4Operating margin is calculated by dividing operating income by revenue.
5See tables below on page 9 reconciling fiscal year 2026 GAAP to non-GAAP guidance.
According to Greg Adelson, President and CEO, "We delivered very strong third-quarter financial results, reflecting our differentiated set of modern solutions, unwavering focus on helping banks and credit unions win in the markets they serve, and disciplined execution across our business. Sales momentum remained strong, highlighted by 17 competitive core wins in the quarter, our best third quarter for new core wins in the last seven years. The sales pipeline is increasing, fueled by increased technology spending and competitive uncertainty, positioning Jack Henry well for driving long-term growth and value creation."
Operating Results
Revenue, operating expenses, operating income, and net income for the fiscal three and nine months ended March 31, 2026, compared to the fiscal three and nine months ended March 31, 2025, were as follows:
Revenue
(Unaudited, dollars in thousands)
Three Months Ended
March 31,
% Change
Nine Months Ended
March 31,
% Change
2026
2025
2026
2025
Revenue
Services and Support
$ 365,149
$ 330,792
10.4 %
$ 1,087,808
$ 1,010,498
7.7 %
Percentage of Total Revenue
57.4 %
56.5 %
57.2 %
57.4 %
Processing
271,096
254,295
6.6 %
812,508
749,418
8.4 %
Percentage of Total Revenue
42.6 %
43.5 %
42.8 %
42.6 %
REVENUE
$ 636,245
$ 585,087
8.7 %
$ 1,900,316
$ 1,759,916
8.0 %
Services and support revenue increased for the fiscal three months ended March 31, 2026, primarily driven by growth in data processing and hosting revenue within private and public cloud revenue of 9.4% and higher deconversion revenue by $9,021. Processing revenue increased for the fiscal three months ended March 31, 2026, primarily driven by growth in digital and transaction revenue of 9.9%, card revenue of 3.6%, and faster payments revenue of 46.4%.
Services and support revenue increased for the fiscal nine months ended March 31, 2026, primarily driven by growth in data processing and hosting revenue within private and public cloud revenue of 8.9% and higher deconversion revenue by $20,094. Processing revenue increased for the fiscal nine months ended March 31, 2026, primarily driven by growth in digital and transaction revenue of 12.8%, card revenue of 6.2%, and faster payments revenue of 50.5%.
For the fiscal three months ended March 31, 2026, core segment revenue increased 9.2%, payments segment revenue increased 7.0%, complementary segment revenue increased 8.7%, and corporate services segment revenue increased 27.5%. For the fiscal three months ended March 31, 2026, core segment non-GAAP adjusted revenue increased 8.6%, payments segment non-GAAP adjusted revenue increased 4.7%, complementary segment non-GAAP adjusted revenue increased 7.2%, and corporate services non-GAAP adjusted segment revenue increased 27.1%. Total non-GAAP adjusted revenue increased 7.3% for the same period (see revenue lines of segment break-out tables on pages 5 and 6 below for a reconciliation of GAAP segment revenue to non-GAAP adjusted segment revenue).
For the fiscal nine months ended March 31, 2026, core segment revenue increased 5.9%, payments segment revenue increased 8.0%, complementary segment revenue increased 9.5%, and corporate services segment revenue increased 14.5%. For the fiscal nine months ended March 31, 2026, core segment non-GAAP adjusted revenue increased 7.4%, payments segment non-GAAP adjusted revenue increased 6.5%, complementary segment non-GAAP adjusted revenue increased 8.4%, and corporate services non-GAAP adjusted segment revenue increased 14.2%. Total non-GAAP adjusted revenue increased 7.6% for the same period (see revenue lines of segment break-out tables on pages 7 and 8 below for a reconciliation of GAAP segment revenue to non-GAAP adjusted segment revenue).
Operating Expenses and Operating Income
(Unaudited, dollars in thousands)
Three Months Ended
March 31,
% Change
Nine Months Ended
March 31,
% Change
2026
2025
2026
2025
Cost of Revenue
$ 363,922
$ 340,586
6.9 %
$ 1,063,476
$ 1,016,868
4.6 %
Percentage of Total Revenue6
57.2 %
58.2 %
56.0 %
57.8 %
Research and Development
45,110
39,411
14.5 %
126,615
120,192
5.3 %
Percentage of Total Revenue6
7.1 %
6.7 %
6.7 %
6.8 %
Selling, General, and Administrative
72,166
66,350
8.8 %
211,965
209,839
1.0 %
Percentage of Total Revenue6
11.3 %
11.3 %
11.2 %
11.9 %
OPERATING EXPENSES
481,198
446,347
7.8 %
1,402,056
1,346,899
4.1 %
OPERATING INCOME
$ 155,047
$ 138,740
11.8 %
$ 498,260
$ 413,017
20.6 %
Operating Margin6
24.4 %
23.7 %
26.2 %
23.5 %
Cost of revenue increased for the fiscal three months ended March 31, 2026, compared to the fiscal three months ended March 31, 2025, primarily due to higher personnel costs, including compensation and benefit costs, partially related to a headcount increase in the trailing twelve months, higher direct costs generally consistent with increases in related lines of revenue, as well as increased amortization of intangible assets.
Cost of revenue increased for the fiscal nine months ended March 31, 2026, compared to the fiscal nine months ended March 31, 2025, primarily due to higher personnel costs, including compensation and benefit costs, partially related to a headcount increase in the trailing twelve months, higher direct costs generally consistent with increases in related lines of revenue, and increased amortization of intangible assets. Personnel cost increases over the prior year period were tempered by lower than normal medical claims earlier in the fiscal year.
Research and development expense increased for the fiscal three and nine months ended March 31, 2026, compared to the fiscal three and nine months ended March 31, 2025, primarily due to higher personnel costs (net of capitalization), including compensation and benefit costs, partially related to a headcount increase in the trailing twelve months.
Selling, general, and administrative expense increased for the fiscal three months ended March 31, 2026, compared to the fiscal three months ended March 31, 2025, primarily due to higher personnel costs, including compensation and benefit costs, partially related to a headcount increase in the trailing twelve months.
Selling, general, and administrative expense increased for the fiscal nine months ended March 31, 2026, compared to the fiscal nine months ended March 31, 2025, primarily due to higher personnel costs, including compensation and benefit costs, partially related to a headcount increase in the trailing twelve months and the higher gain on assets, net, in the current fiscal year period of $5,267 compared to the prior fiscal year period. Personnel cost increases over the prior year period were tempered by lower than normal medical claims earlier in the fiscal year.
Net Income
(Unaudited, in thousands,
except per share data)
Three Months Ended
March 31,
% Change
Nine Months Ended
March 31,
% Change
2026
2025
2026
2025
Income Before Income Taxes
$ 158,541
$ 141,908
11.7 %
$ 513,052
$ 426,087
20.4 %
Provision for Income Taxes
35,647
30,800
15.7 %
121,503
97,943
24.1 %
NET INCOME
$ 122,894
$ 111,108
10.6 %
$ 391,549
$ 328,144
19.3 %
Diluted earnings per share
$ 1.71
$ 1.52
12.2 %
$ 5.41
$ 4.49
20.4 %
Effective tax rates for the fiscal three and nine months ended March 31, 2026, and 2025, were 22.5% and 23.7% and 21.7% and 23.0%, respectively.
According to Mimi Carsley, CFO and Treasurer, "During the third quarter, we delivered strong growth in several key revenue areas, including continued expansion in cloud revenue and solid performance from our faster payments products and digital offerings. We anticipate relative weakness to the year to date in fiscal Q4 non-GAAP revenue and margins consistent with previously stated expectations. Based on our positive outlook, we have increased our full year non-GAAP revenue, non-GAAP margin expansion, and GAAP EPS guidance."
6Operating margin is calculated by dividing operating income by revenue. Operating margin plus operating expense components as a percentage of total revenue may not equal 100% due to rounding.
Impact of Non-GAAP Adjustments
The tables below show our revenue, operating income, and net income for the fiscal three and nine months ended March 31, 2026, compared to the fiscal three and nine months ended March 31, 2025, excluding the impacts of deconversions in the fiscal quarter and fiscal year-to-date periods ended March 31, 2026, and March 31, 2025, the acquisition in the current fiscal quarter and fiscal year-to-date period, the gain on assets, net, in the current fiscal year-to-date period, and the impact of a contract change in the prior fiscal quarter and fiscal year-to-date period.
(Unaudited, dollars in thousands)
Three Months Ended March 31,
% Change
Nine Months Ended March 31,
% Change
2026
2025
2026
2025
GAAP Revenue*
$ 636,245
$ 585,087
8.7 %
$ 1,900,316
$ 1,759,916
8.0 %
Adjustments:
Deconversion revenue
(18,665)
(9,644)
(33,504)
(13,410)
Revenue related to a contract change
—
(1,201)
—
(14,672)
Revenue from the acquisition
(1,651)
—
(3,595)
—
NON-GAAP ADJUSTED REVENUE*
$ 615,929
$ 574,242
7.3 %
$ 1,863,217
$ 1,731,834
7.6 %
GAAP Operating Income
$ 155,047
$ 138,740
11.8 %
$ 498,260
$ 413,017
20.6 %
Adjustments:
Operating income from deconversions
(14,635)
(6,851)
(25,337)
(9,724)
Operating income related to a contract change
—
(209)
—
(2,178)
Gain on assets, net
—
—
(6,829)
—
Operating loss from the acquisition
833
—
1,817
—
NON-GAAP ADJUSTED OPERATING INCOME
$ 141,245
$ 131,680
7.3 %
$ 467,911
$ 401,115
16.7 %
Non-GAAP Adjusted Operating Margin**
22.9 %
22.9 %
25.1 %
23.2 %
GAAP Net Income
$ 122,894
$ 111,108
10.6 %
$ 391,549
$ 328,144
19.3 %
Adjustments:
Net income from deconversions
(14,635)
(6,851)
(25,337)
(9,724)
Net income related to a contract change
—
(209)
—
(2,178)
Gain on assets, net
—
—
(6,829)
—
Net loss from the acquisition
833
—
1,817
—
Tax impact of adjustments***
3,313
1,694
7,284
2,857
NON-GAAP ADJUSTED NET INCOME
$ 112,405
$ 105,742
6.3 %
$ 368,484
$ 319,099
15.5 %
*GAAP revenue is comprised of services and support and processing revenues (see page 2). Services and support revenue less deconversion revenue for the three months ended March 31, 2026, and 2025, which was $18,665 for the current fiscal year quarter and $9,644 for the prior fiscal year quarter, and reducing the three months ended March 31, 2025, amount also for revenue related to a contractual change of $1,201, results in non-GAAP adjusted services and support revenue growth of 8.3% quarter over quarter. Processing revenue less revenue from the acquisition for the three months ended March 31, 2026, of $1,651, results in non-GAAP adjusted processing revenue growth of 6.0% quarter over quarter.
Services and support revenue less deconversion revenue for the nine months ended March 31, 2026, and 2025 which was $33,504 for the current fiscal year period and $13,410 for the prior fiscal year period, and reducing the nine months ended March 31, 2025, amount also for revenue related to a contractual change of $14,672, results in non-GAAP adjusted services and support revenue growth of 7.3% period over period. Processing revenue less revenue from the acquisition for the three months ended March 31, 2026, of $3,595, results in non-GAAP adjusted processing revenue growth of 7.9% period over period.
**Non-GAAP adjusted operating margin is calculated by dividing non-GAAP adjusted operating income by non-GAAP adjusted revenue.
***The tax impact of adjustments is calculated using a tax rate of 24% for the fiscal three and nine months ended March 31, 2026, and 2025. The tax rate for non-GAAP adjustment items takes a broad look at the Company's recurring tax adjustments and applies them to non-GAAP revenue that does not have its own specific tax impacts.
The tables below show the segment break-out of revenue and cost of revenue for each period presented, as adjusted for the items above, and include a reconciliation to non-GAAP adjusted operating income presented above.
Three Months Ended March 31, 2026
(Unaudited, dollars in thousands)
Core
Payments
Complementary
Corporate Services
Total
GAAP REVENUE
$ 195,448
$ 232,720
$ 187,489
$ 20,588
