Jack Henry & Associates (JKHY) Q3 2026 earnings summary

Executive summary

• Achieved record Q3 results with GAAP revenue up 8.7% to $636.2M and non-GAAP revenue up 7.3%, driven by organic growth in data processing, hosting, digital, card, and faster payments revenue lines.

• Net income for Q3 2026 rose 10.6% to $122.9M, with diluted EPS up 12.2% to $1.71; year-to-date GAAP EPS was $5.41, up 20.4%.

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

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

• Significant progress in AI adoption, stablecoin strategy, and new SMB solutions like Tap2Local and Rapid Transfers, with strong client feedback and early adoption.

Financial highlights

• Q3 2026 GAAP revenue: $636.2M (+8.7% YoY); non-GAAP revenue: $616M (+7.3% YoY); nine months: $1.9B (+8.0% YoY).

• Q3 2026 net income: $122.9M (+10.6% YoY); nine months: $391.5M (+19.3% YoY).

• Operating income for Q3 2026: $155.0M (+11.8% YoY); non-GAAP operating margin: 22.9% for Q3, 25.1% YTD.

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

• GAAP EPS for Q3: $1.71 (up 12.2%); year-to-date: $5.41 (up 20.4%).

Outlook and guidance

• Fiscal 2026 full-year GAAP revenue guidance: $2,521M–$2,533M (up 6.1%–6.6%); non-GAAP revenue: $2,479M–$2,491M (up 6.6%–7.1%).

• Full-year GAAP EPS guidance raised to $6.78–$6.87 (up 9%–10%); non-GAAP margin expansion guidance increased to 75–95 bps.

• 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 fiscal 2026 is 95%–105%, with a bias toward the upper end.

• Guidance assumes no additional acquisitions or dispositions in FY26.