Jack Henry & Associates (JKHY) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly results with GAAP revenue up 7.9% to $619.3 million and non-GAAP revenue up 6.7%, driven by strong organic growth in digital, card, and payments products.

• Net income rose 27.4% to $124.7 million, with GAAP EPS up 28.6% to $1.72 and operating income up 29.4% year-over-year.

• Strong sales performance included 22 core wins, robust adoption of cloud-native and innovative solutions, and continued market share gains.

• Completed the acquisition of Victor Technologies, expanding Payments-as-a-Service and embedded payments capabilities.

• Celebrated major company milestones, including 40th IPO and 50th anniversary, underscoring long-term stability.

Financial highlights

• Quarterly revenue reached $619.3 million, up from $573.8 million; six-month revenue was $1.26 billion, up 7.6% year-over-year.

• Free cash flow for the six months was $172 million, up from $88 million a year earlier; operating cash flow for Q2 was $153 million, up $63 million year-over-year.

• Non-GAAP operating margin improved 355 bps to 25.1% for the quarter; GAAP operating margin was 25.7%, up from 21.4% a year ago.

• Return on average shareholders' equity was 24.3%, up from 21.9% a year ago; NOPAT ROIC was 19.1%.

• Recurring revenue exceeded 92% of total; cloud revenue is 33% of total; processing revenue is 44%.

Outlook and guidance

• Full-year GAAP revenue guidance is $2,508–$2,525 million; non-GAAP adjusted revenue $2,474–$2,491 million.

• GAAP EPS guidance raised to $6.61–$6.72; non-GAAP margin expansion guidance increased to 50–75 bps for the year.

• Free cash flow conversion outlook for FY26 is 90%–100%, with a bias toward the high end.

• Revenue growth rates and margins expected to slow in the second half due to tougher comparables and normalized benefits costs.

• Deconversion revenue guidance increased to $28 million for FY26.