Jack Henry & Associates (JKHY) 47th Annual Raymond James Institutional Investor Conference summary

Company overview and business model

• Provides technology solutions for banks and credit unions, including core processing, payments, and complementary products.

• Operates in three segments: core, payments, and complementary, with contracts typically lasting 3–7 years.

• No exposure to seat-based licensing; pricing is account, asset, transaction, or subscriber-based.

• Celebrating 50 years in business and 40 years as a public company.

AI strategy and innovation

• Has used AI for 3.5 years, with over 100 approved tools and 500+ use cases across legal, HR, and development.

• Quarterly updates LLMs for optimal performance; AI has driven significant efficiency gains, such as 70% improvement in development execution.

• Emphasizes a responsibly bold and balanced approach, involving risk and security leadership and regulators.

• Sees AI as a major opportunity for innovation and competitive differentiation.

Market trends and customer environment

• Surveys indicate tech spending by banks and credit unions is expected to rise 5–10% in 2025–2026, nearly double recent years.

• 84% of banks and 83% of credit unions expect increased tech spend in 2026.

• Growth is driven by the need for innovation and technology rather than headcount.