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↓Deteriorating
- Four Quarter Perfect Beat Streak→Stable
- Favorable 25pct Upside Asymmetry→Stable
- +1 more pillar — see the Why tab for full reasoning
Jack Henry & Associates, Inc. (JKHY) Stock Analysis
Technology · Information Technology Services
Sell if holding. Analyst target reached at $168.37 — A.R:R 0.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Technology): -0.8.
Jack Henry & Associates serves approximately 7,400 community and regional financial institutions with core banking systems, payment processing, and complementary technology solutions. Revenue is primarily recurring through cloud-hosted clients on six-year contracts and... Read more
Sell if holding. Analyst target reached at $168.37 — A.R:R 0.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Technology): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.0/10, moderate confidence.
Passes 5/8 gates (clean insider activity, news events none recent, earnings proximity 60d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.
About Jack Henry & Associates, Inc.
About Jack Henry & Associates, Inc.
Jack Henry & Associates serves approximately 7,400 financial institutions and corporate entities, including over 950 banks on one of three core processing platforms and about 715 credit unions on its Symitar platform — roughly 1,670 core clients plus over 5,710 non-core clients. Its SilverLake System alone serves 520 banks, nearly 12% of the roughly 4,440 U.S. banks with $55 billion or less in assets, with support revenue anchored by six-year hosted-cloud and one-year on-premise contracts.
Jack Henry earns revenue from software license fees and ongoing annual support fees (typically priced around 20% of the license fee) for on-premise clients, recurring per-account and minimum-guarantee fees from clients who outsource core processing to its private cloud under six-year contracts, and hardware remarketing through agreements with IBM, Lenovo, Dell, Hewlett Packard Enterprise, and Cisco, among other providers. Complementary and payment products layer on top of the core platforms, including JHA Card Processing Solutions, Enterprise Payment Solutions, and the Payrailz payments platform, which connect to card networks and faster-payment rails such as Visa, Mastercard, Zelle, FedNow, and The Clearing House's RTP network. The company has completed 35 acquisitions since fiscal 1999 — most recently Payrailz in fiscal 2023 — to expand its complementary product suite, and it is investing in the cloud-native, API-first Jack Henry Platform to modernize core functions like wire transfers, general ledger, and deposit servicing for clients seeking public-cloud delivery.
Show full overview
Jack Henry's shift toward outsourced infrastructure concentrates a risk the 10-K names directly: as the company moves more computing, storage, and processing out of its own data centers, it relies on certain third-party vendors for large portions of its hosting needs, and that reliance is set to deepen as more clients move to private and public cloud delivery. Because Jack Henry doesn't control those vendors' operations, a failure at one of these concentrated hosting partners could disrupt service delivery to a meaningful share of its roughly 7,400 financial-institution and corporate clients simultaneously, a risk distinct from the software-defect or in-house infrastructure failures the filing also describes.
See also: Technology · Information Technology Services
From Jack Henry & Associates, Inc.'s most recent 10-K filing, extracted August 30, 2026.
Recent developments
updated 2026-09-04Recent 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 2026-09-04T12:02:04Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Material Events(8-K, last 90d)
- 2026-06-04Item 5.02MEDIUMDavid B. Foss, Chair of the Board (former CEO 2016-2024), notified the Board of intent to retire as a director effective July 15, 2026. No successor Chair named. No disagreement with company, management, or Board cited.SEC filing →
- 2026-03-26Item 1.01LOWJKHY entered a $1.0 billion five-year revolving unsecured credit agreement on March 25, 2026, replacing the prior $600 million facility. U.S. Bank National Association serves as Administrative Agent. No default events.SEC filing →
- 2026-03-26Item 1.02MEDIUMPrior $600 million revolving unsecured credit agreement (dated August 31, 2022, maturity Aug 31, 2027) terminated March 25, 2026 simultaneously with closing of the new $1.0 billion facility. No early termination penalties cited.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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. The TrendMatrix editorial team frequently holds personal long-term positions in securities discussed. We disclose positions held at the time of publication on each piece. We maintain a trading-window policy: we do not initiate or close positions in the same direction as a TrendMatrix publication within 24 hours before or 72 hours after publication.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security. Our sole compensation is subscription revenue.
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
2 floor-breakers
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Momentum 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
Sell if holding. Analyst target reached at $168.37 — A.R:R 0.2:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Technology): -0.8. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $157.52. Score 5.0/10, moderate confidence.
Take-profit target: $172.38 (+2.8% upside). Prior stop was $157.52. Stop-loss: $157.52.
Analyst target reached - limited upside remaining; Sector modifier (Technology): -0.8; Weak growth.
Jack Henry & Associates, Inc. trades at a P/E of 24.1 (forward 21.5). TrendMatrix value score: 5.0/10. Verdict: Sell.
23 analysts cover JKHY with a consensus score of 4.0/5. Average price target: $192.
What does Jack Henry & Associates, Inc. do?Jack Henry & Associates serves approximately 7,400 community and regional financial institutions with core banking...
Jack Henry & Associates serves approximately 7,400 community and regional financial institutions with core banking systems, payment processing, and complementary technology solutions. Revenue is primarily recurring through cloud-hosted clients on six-year contracts and electronic payment processing fees, with a client base spanning over 950 banks and 715 credit unions on core platforms.