Jack Henry & Associates demonstrates a rare four-quarter perfect beat streak, high-quality net margins of 21%, and 25.5% upside to the analyst target at a 4-to-1 risk/reward—but a confirmed price downtrend at -2.6% per month slope and elevated leverage create timing risk for new positions despite the quality and asymmetry credentials.
Thesis pillars
- High Quality Margins Piotroski→Stable
- Four Quarter Perfect Beat Streak↑Improving
- Favorable 25pct Upside Asymmetry↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Aug 28, 2026· older than 90 days
Jack Henry & Associates, Inc. (JKHY) Stock Analysis
Breakout setup
Technology · Information Technology Services
Hold if already holding. Not a fresh buy at $161.66, but acceptable to hold if already in. Reasons: Thin upside margin: 4.7%; Sector modifier (Technology): -0.8.
Jack Henry provides core processing, digital banking, payments and risk software to community and regional banks and credit unions, supporting over 900 core banks, over 700 core credit unions and about 5,600 non-core clients. Most support and services revenue comes from... Read more
Hold if already holding. Not a fresh buy at $161.66, but acceptable to hold if already in. Reasons: Thin upside margin: 4.7%; Sector modifier (Technology): -0.8. Chart setup: Golden cross, above all MAs, RSI 61, MACD bullish. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Score 5.5/10, moderate confidence.
Passes 6/8 gates (positive momentum, clean insider activity, news boost earnings 0.80, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
About Jack Henry & Associates, Inc.
About Jack Henry & Associates, Inc.
Jack Henry supports over 7,200 financial institutions and corporate entities, including core processing for over 900 banks and over 700 credit unions plus approximately 5,600 non-core clients. Its core platforms include SilverLake, CIF 20/20, Core Director and Symitar, and it reports results in four segments. The company, which traces its founding to 1976, targets community and regional institutions and serves core bank clients with up to $55 billion in assets.
The majority of support and services revenue comes from private and public cloud services for hosted clients, typically on six-year contracts, and from recurring electronic payment solutions that generally run six years, while on-premise clients are typically on one-year contracts. Software license fees and hardware sales, including re-marketed IBM Power Systems, Lenovo, Dell, Hewlett Packard Enterprise and Cisco equipment, supplement those sources. On-premise support is typically priced at approximately 20% of the product's license fee and billed in advance each June. The Banno Digital Platform anchors digital products, the Jack Henry Platform is being developed as a public cloud-native alternative for core functions, and 36 acquisitions since fiscal 1999 have broadened the suite, most recently Victor Technologies in fiscal 2026. Competitors include software vendors, financial technology companies and payment-focused providers.
Show full overview
Contract renewal and infrastructure reliance shape the risk profile. A significant number of six-year outsourcing and payment contracts come up for renewal each year, giving clients a chance to switch providers or renegotiate, and the filing notes that some renewals have already produced price compression. Jack Henry also relies on a limited number of third-party providers for significant portions of its hosting and technology infrastructure, a dependence that may grow as workloads move into public cloud. The customer base is itself shrinking: the FDIC reports commercial banks and savings institutions declined 13% from 2020 to 2025, and ACU reports credit unions fell 16%. Portions of operations face examination by the OCC, the Federal Reserve Board, the FDIC, the CFPB and, for credit unions, the NCUA.
See also: Technology · Information Technology Services
From Jack Henry & Associates, Inc.'s most recent 10-K filing, extracted October 18, 2026.
Recent developments
updated Oct 28, 2026Recent Developments — Jack Henry & Associates, Inc.
Latest news
- NEWS Insiders At Jack Henry & Associates Sold US$3.5m In Stock, Alluding To Potential Weakness - 富途牛牛 — 富途牛牛 Oct 28, 2026 negative
- NEWS Insiders At Jack Henry & Associates Sold US$3.5m In Stock, Alluding To Potential Weakness - Moomoo — Moomoo Oct 28, 2026 negative
- NEWS Jack Henry (JKHY) Earnings Expected to Grow: Should You Buy? - Yahoo Finance — Yahoo Finance Oct 27, 2026 positive
- NEWS Why Is Jack Henry (JKHY) Stock Soaring Today - StockStory — StockStory Aug 19, 2026 positive
- NEWS Jack Henry stock climbs after Q4 earnings, FY2027 guidance (JKHY:NASDAQ) - Seeking Alpha — Seeking Alpha Aug 19, 2026 positive
Latest item Oct 28, 2026 · Generated 2026-11-04T11:54:38Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomercommunity and regional banks and credit unions10-K Item 1: 'We provide products and services primarily to community and regional banks and credit unions'
- MEDIUMSupplierthird-party hosting and technology infrastructure providers10-K Item 1A: 'We rely on a limited number of third-party service providers that provide significant portions of our hosting and technology infrastructure.'
Material Events(8-K, last 90d)
- 2026-08-24Item 5.02LOWBoard appointed Richard N. Preece (CEO of GoGuardian, ex-LegalZoom COO) as director on Aug 20, 2026, filling the vacancy from David Foss's July 15 retirement. Board shrinks from ten to nine; Wes Brown not standing for reelection (age 72).SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
1 floor-breaker
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Hold if already holding. Not a fresh buy at $161.66, but acceptable to hold if already in. Reasons: Thin upside margin: 4.7%; Sector modifier (Technology): -0.8. Chart setup: Golden cross, above all MAs, RSI 61, MACD bullish. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Analyst target $169.29 (+4.7%), stop $152.42 (−6.1%), A.R:R 0.4:1. Score 5.5/10, moderate confidence.
Analyst target: $169.29 (+4.7% upside). Analyst target $169.29 (+4.7%), stop $152.42 (−6.1%), A.R:R 0.4:1. Stop-loss: $152.42.
Thin upside margin: 4.7%; Sector modifier (Technology): -0.8; Weak growth.
Jack Henry & Associates, Inc. trades at a P/E of 23.4 (forward 20.4). TrendMatrix value score: 5.2/10. Verdict: Hold.
27 analysts rate JKHY, with a consensus score of 4.0/5. 19 analysts publish price targets averaging $188.
What does Jack Henry & Associates, Inc. do?Jack Henry provides core processing, digital banking, payments and risk software to community and regional banks and...
Jack Henry provides core processing, digital banking, payments and risk software to community and regional banks and credit unions, supporting over 900 core banks, over 700 core credit unions and about 5,600 non-core clients. Most support and services revenue comes from cloud-hosted and electronic payment contracts that typically run six years, supplemented by on-premise maintenance, license and hardware sales. Item 1 cites high retention and a single point of support for each core client.