Jack Henry & Associates reported strong financial results for the second quarter of fiscal year 2026, driven by robust growth in core and processing revenues, particularly in cloud, faster payments, and digital solutions. The company's sales teams delivered outstanding results, and new public cloud-native solutions are showing strong momentum, positioning the company well in the market.
GAAP revenue increased 7.9% to $619.3 million and GAAP operating income increased 29.4% for the fiscal three months ended December 31, 2025, compared to the prior fiscal year quarter.
positiveNon-GAAP adjusted revenue increased 6.7% and non-GAAP adjusted operating income increased 24.3% for the fiscal three months ended December 31, 2025, compared to the prior fiscal year quarter.
positiveGAAP EPS grew 28.6% to $1.72 per diluted share for the fiscal three months ended December 31, 2025, compared to $1.34 per diluted share in the prior fiscal year quarter.
positiveThe company won 22 competitive core deals in the quarter, maintaining a robust pipeline fueled by a growing demand environment.
positiveNew public cloud-native solutions are experiencing strong momentum and providing meaningful competitive advantages.
positiveSelling, general, and administrative expense decreased 12.9% for the fiscal three months ended December 31, 2025, primarily due to a decrease in travel and entertainment and meeting expenses related to the timing of the Connect conference and a higher gain on sale of assets, net, of $3,032 million.
attentionThe company expects year-over-year revenue growth rates to slow slightly in the second half of fiscal 2026 due to tougher prior year comparables.
attentionMargins are expected to contract in the second half of fiscal 2026 compared to the first half, which benefited from lower than normal medical claims experience.
attentionCorporate and other segment revenue decreased 9.8% for the fiscal three months ended December 31, 2025.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Core | N/A | — | — | — |
Payments | N/A | — | — | — |
Complementary | N/A | — | — | — |
Corporate and Other | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
We are pleased to report very strong financial results for the second quarter of our fiscal year.
Our sales teams delivered outstanding results across all areas, including our core segment where we won 22 competitive core deals in the quarter while maintaining a robust pipeline fueled by a growing demand environment.
Our new public cloud-native solutions – including the Jack Henry Platform™, Tap2Local™ and Rapid Transfers – are experiencing strong momentum and providing meaningful competitive advantages for our bank and credit union clients.
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