Jack Henry Rises After Topping Q4 Profit and Sales Views
Financial tech firm posts a 10% revenue increase and provides an upbeat forecast, citing strong demand for its services.
Shares of Jack Henry & Associates (JKHY) climbed on Tuesday after the financial technology provider reported fourth-quarter earnings and revenue that surpassed analyst expectations, driven by robust growth across its core business segments.
The company announced GAAP earnings per share of $1.75 for the quarter ending June 30, 2025, handily beating the consensus estimate of $1.50. Revenue rose 9.9% year-over-year to $615.37 million, also exceeding forecasts of $606.3 million. The strong performance prompted a 3.4% rise in the company's stock price on trading volume 1.6 times the daily average.
For the full fiscal year, Jack Henry reported record revenue of $2.38 billion, a 7.2% increase from the prior year, with GAAP operating income climbing nearly 24% in the final quarter. The results were bolstered by strong sales for its core processing, complementary services, and payment solutions that serve banks and credit unions across the United States.
"Our fourth quarter and full 2025 fiscal year results reflect solid overall performance," said Greg Adelson, President and CEO of Jack Henry & Associates. "Our strong fourth-quarter sales wins... along with our ongoing success winning larger financial institutions and maintaining a very healthy pipeline for fiscal year 2026, demonstrate the continued strength in technology spending."
Adelson highlighted the recent launch of new products, including Jack Henry Rapid Transfers™ and the Tap2Local™ merchant acquiring solution, as key innovations for its clients. The company also strengthened its balance sheet, increasing its cash position to $102 million while eliminating $150 million in debt related to its credit facilities over the past year.
Looking ahead, Jack Henry projected continued growth for fiscal year 2026, forecasting revenue between $2.48 billion and $2.50 billion and earnings per share in the range of $6.32 to $6.44. The positive outlook suggests management's confidence in sustained demand for financial technology upgrades within the banking sector.