Jack Henry & Associates (JKHY) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 results with GAAP revenue of $636.2M, up 8.7% year-over-year, and non-GAAP revenue of $616M, up 7.3%, with non-GAAP operating margin of 22.9%.

• Net income for Q3 was $122.9M (up 10.6% YoY), with GAAP EPS up 12.2% to $1.71; YTD net income $391.5M (up 19.3%), GAAP EPS $5.41 (up 20.4%).

• Secured 17 competitive core wins in Q3, including five institutions with over $1B in assets, marking the strongest Q3 for new core wins in seven years.

• Completed the acquisition of Victor Technologies to expand Payments-as-a-Service capabilities.

• 58% of core wins included digital banking and card solutions, up from 29% last year, reflecting strong cross-sell momentum.

Financial highlights

• Q3 GAAP revenue: $636.2M (+8.7% YoY); non-GAAP revenue: $616M (+7.3% YoY); operating income: $155.0M (+11.8% YoY); net income: $122.9M (+10.6% YoY).

• Year-to-date GAAP revenue: $1.90B (+8.0% YoY); operating income: $498.3M (+20.6% YoY); net income: $391.5M (+19.3% YoY).

• Non-GAAP adjusted operating margin for Q3: 22.9%; for YTD: 25.1%.

• Free cash flow for nine months: $294M (+111% YoY); operating cash flow: $459M (+46% YoY).

• GAAP EPS for Q3: $1.71 (up from $1.52); YTD: $5.41 (up from $4.49).

Outlook and guidance

• Fiscal 2026 GAAP revenue guidance: $2,521M–$2,533M; GAAP EPS: $6.78–$6.87.

• Non-GAAP annual revenue growth guidance tightened to 6.6%-7.1%; adjusted operating margin: 23.9%–24.1%.

• Q4 expected to see lower non-GAAP revenue growth and margin contraction due to digital revenue slowdown, card revenue pressure, and higher expenses.

• Free cash flow conversion outlook for FY26 is 95%-105%, with a bias toward the upper end.

• Guidance assumes no additional acquisitions or dispositions in FY26.