JKHY US S&P 500Russell 1000 Earnings call · transcribed from the recording
Jack Henry & Associates (JKHY) · Q3 2026 results and valuation
Share price: $175.90 · 2026-11-11
Results Q3 2026 vs Q2 2026 · previous quarter · fiscal Q1 2027 · published 3 Nov 2026 and 19 Aug 2026
Net income up 44.2% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+44.2%
Net income vs Q2 2026
Net income 160.4M vs 111.2M
Revenue +8.9%
Against the same quarter last year (Q3 2025) it is +11.4% — part of the move on last quarter is seasonal.
2 · How management spoke
Typical
More upbeat than 63% of company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Figure
This has unlocked substantial productivity gains, including up to 90% increase in development output for some of Jack Henry & Associates' key…
Valuation
Is Jack Henry & Associates undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-06-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 7.0% growth a year (3-year revenue growth), the model's fair value is $188.23 a share — the stock trades 7% below it. Today's price assumes 6.1% growth a year.
Current price
$175.90
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+6.1% for 10 yrs
Fair value / share
$188.23
Buy below
$141.17
Price vs fair value
Undervalued 7%
Price vs buy-below price
Overvalued 25%
Read between the lines
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Key theme
However, this quarter Jack Henry & Associates secured nine competitive core wins, which is more than double the four it had in Q1…
Source quote
“However, this quarter we secured nine competitive core wins, which is more than double the four we had in Q1... As a reminder, the first quarter is typically our lightest of the fiscal year. Additionally, our sales pipeline continues to be robust, reinforcing the momentum we're seeing across the entire business.”
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Figure
Though each institution represents different stages of Jack Henry & Associates' pipeline, that growth is particularly meaningful given that nearly 40% of its 58 competitive core wins...
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“That speaks to the increasing strength of our digital solution and the continued momentum we are seeing following our 83% Bano attach rate in fiscal 2026.”
“The demand for our solutions remains strong, as demonstrated by our quarterly results, robust pipeline, and record attendance at Jack Henry Connect.”
“Additionally, our sales pipeline continues to be robust, reinforcing the momentum we're seeing across the entire business.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 701.5M | 644.0M | +8.9% | 644.7M | +8.8% |
| Gross profit | 325.5M | 273.8M | +18.9% | 296.2M | +9.9% |
| Operating income | 207.1M | 136.8M | +51.4% | 184.1M | +12.5% |
| Net income | 160.4M | 111.2M | +44.2% | 144.0M | +11.4% |
| EPS | 2.28 | 1.57 | +45.2% | 1.97 | +15.7% |
| P/E today 23.8 | 19.6 | 19.7 | −0.1 | 22.6 | −3.0 |
Topics
Most discussed now
- Following my opening remarks, Greg will provide a brief summary of Jack Henry & Associates' quarterly results, updates on operations, sales…
- These results align with findings from Jack Henry & Associates' strategy benchmark published last spring, and that survey 88% of its own…
- Whether it's the 30 components that have been built on there, they're not all just, quote, core components like general...
- If there is a core solution like WIRES that sits inside one of Jack Henry & Associates' cores, if they want to go...
- The conference showcased Jack Henry & Associates' continued innovation, including significant advancements in the Jack Henry platform…
Faded since Q2 2026
- Dropped Jack Henry & Associates actually have a team a fintech biz dev team that works on building relationships and some of those relationships...
- Fading Jack Henry & Associates' public cloud native modernization strategy and innovative new solutions have helped us continue to attract larger…
- Fading Jack Henry & Associates delivered record financial performance in both the fourth quarter and full fiscal year.
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K
- Other events · SEC 8-K
- Results of operations · SEC 8-K