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→Stable
- Favorable 25pct Upside Asymmetry↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Jack Henry & Associates, Inc. (JKHY) Stock Analysis
Catalyst-Driven edge
Technology · Information Technology Services
Hold if already holding. Not a fresh buy at $155.26, but acceptable to hold if already in. Reasons: Thin upside margin: 9.9%; Sector modifier (Technology): -0.8.
Jack Henry provides core processing, digital banking and payments technology to community and regional banks and credit unions, serving about 7,400 institutions including roughly 1,670 core clients. Revenue is mostly support and services from private and public cloud hosting and... Read more
Hold if already holding. Not a fresh buy at $155.26, but acceptable to hold if already in. Reasons: Thin upside margin: 9.9%; Sector modifier (Technology): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Score 5.4/10, moderate confidence.
Passes 6/8 gates (positive momentum, clean insider activity, news boost analyst 0.35, earnings proximity 19d clear, 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 supplies core processing, digital banking and payments technology to approximately 7,400 financial institutions and corporate entities, including about 1,670 core clients (over 950 banks and roughly 715 credit unions) and more than 5,710 non-core clients. Its SilverLake system runs at 520 banks, and the company says it serves nearly 12% of domestic banks with assets of $55 billion or less.
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 also generally run six years. On-premise clients are typically on one-year contracts, and software license fees and hardware sales complement those sources. Clients that outsource core processing usually sign six-year contracts with per-account fees and minimum guaranteed payments, while annual support on licensed software is priced at about 20% of the license fee and billed in advance. Jack Henry re-markets servers and check scanners from suppliers such as IBM, Lenovo and Dell, and sells digital banking through the Banno Digital Platform. The company reports four segments and has completed 35 acquisitions since the end of fiscal 1999, most recently Payrailz in fiscal 2023.
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Market structure and renewal timing frame the main exposure. The FDIC reports the number of commercial banks and savings institutions fell 13% between 2019 and 2024, and credit unions fell 15%, mostly through mergers, so a client acquired by a non-client may reduce or end services. The 10-K also states that a significant number of six-year outsourcing contracts come up for renewal each year, giving clients a chance to renegotiate or switch, and that some renewals have already produced price compression. Regulators including the OCC, Federal Reserve, FDIC, CFPB and NCUA examine portions of the company's operations.
See also: Technology · Information Technology Services
From Jack Henry & Associates, Inc.'s most recent 10-K filing, extracted October 11, 2026.
Recent developments
updated 2026-10-15Recent Developments — Jack Henry & Associates, Inc.
Latest news
- NEWS Quantinno Capital Management LP Purchases 285,893 Shares of Jack Henry & Associates, Inc. $JKHY - MarketBeat — MarketBeat positive
- NEWS Jack Henry & Associates Inc. stock outperforms competitors despite losses on the day - MarketWatch — MarketWatch positive
- NEWS Jack Henry stock trades steadily as recurring revenue supports valuation - AD HOC NEWS — AD HOC NEWS positive
- NEWS Jack Henry stock trades steadily as recurring revenue supports valuation - Ad-hoc-news.de — Ad-hoc-news.de positive
- NEWS AI Worries Weighed on Jack Henry (JKHY) in Q2 - Yahoo Finance — Yahoo Finance negative
Generated 2026-10-15T11:42:22Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomerfinancial services industry10-K Item 1A: 'We derive most of our revenue from products and services we provide to the financial services industry.'
- MEDIUMSupplierthird-party hosting vendors10-K Item 1A: 'This reliance is further concentrated as we use certain third-party vendors to provide large portions of our hosting needs.'
Material Events(8-K, last 90d)
- 2026-06-04Item 5.02MEDIUMBoard Chair David B. Foss, CEO from 2016 to 2024, notified the board on May 29, 2026 of his retirement as a director effective July 15, 2026. No disagreement cited; no successor chair named.SEC filing →
- 2026-03-26Item 1.01LOWOn March 25, 2026 the company entered a $1.0 billion, five-year, unsecured revolving credit agreement with U.S. Bank National Association as administrative agent; about $80 million outstanding under the prior facility was refinanced.SEC filing →
- 2026-03-26Item 1.02MEDIUMThe prior $600 million revolving credit agreement dated August 31, 2022 (maturity August 31, 2027) was terminated as the new facility closed. No early termination penalties owed; replaced by the new $1.0 billion facility.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Technicals 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 $155.26, but acceptable to hold if already in. Reasons: Thin upside margin: 9.9%; Sector modifier (Technology): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Target $170.70 (+9.9%), stop $148.64 (−4.5%), A.R:R 1.1:1. Score 5.4/10, moderate confidence.
Take-profit target: $170.70 (+9.9% upside). Target $170.70 (+9.9%), stop $148.64 (−4.5%), A.R:R 1.1:1. Stop-loss: $148.64.
Thin upside margin: 9.9%; Sector modifier (Technology): -0.8; Weak growth.
Jack Henry & Associates, Inc. trades at a P/E of 22.2 (forward 19.6). TrendMatrix value score: 5.5/10. Verdict: Hold.
23 analysts cover JKHY with a consensus score of 4.0/5. Average price target: $190.
What does Jack Henry & Associates, Inc. do?Jack Henry provides core processing, digital banking and payments technology to community and regional banks and credit...
Jack Henry provides core processing, digital banking and payments technology to community and regional banks and credit unions, serving about 7,400 institutions including roughly 1,670 core clients. Revenue is mostly support and services from private and public cloud hosting and electronic payments, typically on six-year contracts, with on-premise support on one-year terms. Its SilverLake and Symitar core systems are installed at 520 banks and about 715 credit unions.