|JKHY Overview
JKHY

JACK HENRY & ASSOCIATES INC

Technology • CIK: 0000779152

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Market Cap
$13.26B
P/E (TTM)
26.1x
Rev Growth (TTM)
+8.4%
Net Margin (TTM)
20.6%
FCF Yield (TTM)
4.9%
FCF Margin (TTM)
26.5%

LATEST EARNINGS

Q2 FY2026
24 days ago
View source
Revenue
$619.33M
+7.9%
Net Income
$124.67M
+27.4%
EPS
$1.72
+28.6%
Operating
25.7% +4.3%
  • 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.
  • Non-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.
  • GAAP 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.
  • The company won 22 competitive core deals in the quarter, maintaining a robust pipeline fueled by a growing demand environment.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$654M
Q '26
$131M+18%
Q '26
$112M-65%
FCF Margin
TTM26.5%
Q '2621.2%+22%
Sector: 14.5%Top 25%
OCF Margin28.7%
OCF/NI1.40x
CapEx Coverage13.1x
FCF Yield4.9%
FCF Growth (2Y)+12%
Cash Conversion Cycle
39 days
DSO: 44+DIO: 0DPO: 5

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM2.4%
Div Yield1.3%
+
Buyback (TTM)1.1%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)1.3%
FCF Payout Ratio25.8%
Free Cash Flow (TTM)$654.2M
Stock Repurchases (TTM)$143.2M
Capital Return / FCF47.6%
Est. Dividends Paid (TTM)$168.6M
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
23.2%
Moderate
+0.2% YoY+9.1%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
20.0%
8Q: 18.9%
Asset Turnover
0.82x
8Q: 0.81x
Leverage (1+D/E)
1.01x
D/E: 0.01x
DuPont: 16.6%23.2% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
11.35x
8Q:10.79x
+156.0%
Invested Cap Turn
1.16x
8Q:1.14x
+4.9%
CapEx Intensity
2.5%
8Q:2.4%
CapEx/Depreciation
1.29x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ 2026Q 2026Q4 2025Q3 2025Q 2025Q 2025Q4 2024Q3 2024
Revenue
$2.5B
$619.3M3.9%
$644.7M4.8%
$615.4M5.2%
$585.1M2.0%
$573.8M4.5%
$601.0M7.3%
$559.9M4.0%
$538.6M
Operating Income
$637.7M
$159.1M13.5%
$184.1M18.2%
$155.7M12.2%
$138.7M12.8%
$123.0M18.7%
$151.3M20.4%
$125.6M12.1%
$112.1M
Net Income
$507.4M
$124.7M13.4%
$144.0M12.8%
$127.6M14.8%
$111.1M13.6%
$97.8M17.9%
$119.2M17.9%
$101.1M16.0%
$87.1M
Operating Cash Flow
$708.2M
$152.7M26.6%
$120.6M63.1%
$327.1M203.3%
$107.8M20.3%
$89.6M23.3%
$116.9M49.6%
$231.8M137.6%
$97.6M
Free Cash Flow
$654.2M
$131.4M17.7%
$111.7M64.5%
$314.9M227.6%
$96.1M31.7%
$73.0M29.9%
$104.1M50.0%
$208.0M137.3%
$87.7M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
26.1x
Valuation Lenses
Earnings
26.1x
vs sector
Cash Flow
27.6x
EV/FCF vs
Growth-Adj
1.0xPEG
Fair for growth
Quality-Adj
1.1P/E per %ROIC
ROIC: 23.2%
Shareholder Returns
Dividend
1.3%
Buyback
1.1%
Total Yield
2.4%
Market Cap$13.26B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
92/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 25%
24.1%
8Q:
Return on Invested Capital (ROIC)Top 25%
23.2%
8Q:
+9.1%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 20.0%
Asset Turnover: 0.82x

Earnings Quality

Cash Conversion

1.40x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin43.8%

Capital Efficiency

Invested Capital Turnover1.16x

Working Capital

Cash Conversion Cycle39 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
64/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
8.4%
OpInc Growth YoY
29.4%
EPS Growth YoY
25.6%
FCF 3Y CAGR
11.8%

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
43.8%
Operating
25.9%
Top 25% in sector
Net
20.6%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+6.0 pts
FCF: 26.5% | Net: 20.6%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $8.22M
Interest Coverage
+Net cash position: $8.22M
Leverage Metrics
Debt-to-Equity
0.01x
Balance sheet risk & solvency analysis