Jack Henry & Associates (JKHY) Bank of America Electronic Payments Symposium summary

Strategic priorities and leadership

• Focus on tech modernization, including building a public cloud-native core and rebundling 30 main components into microservices.

• Emphasis on maintaining a strong culture, service, innovation, and execution.

• Product rationalization underway, targeting divestiture or sunsetting of low-margin, low-growth products.

• Targeting more core banking wins in the $5B-$50B asset range, with notable success in the first half of the year.

• SMB strategy and new product launches are key focus areas for future growth.

Market environment and M&A trends

• No slowdown observed in core banking sales or card transaction volumes despite macro uncertainty.

• M&A activity remains strong in the $1B-$5B institution segment, with some slowdown above $5B and below $1B.

• Expectation for continued M&A activity, with resources ramped up to support client transitions.

Revenue visibility and growth drivers

• Easier second-half comps and strong pipeline of core wins drive confidence in meeting revenue guidance.

• Cloud revenue growth is a major contributor, with about 90% visibility into recurring revenue.

• Larger core deals are being won, with a focus on asset size as well as deal count.

• Attach rates for modules remain consistent, but success in digital and financial crimes solutions is increasing.