record first quarter financial results with non-GAAP revenue of $636 million, up an impressive 8.7% over last year's first quarter. That significantly exceeds the 7% to 7.5% increase we anticipated in August.
— Gregory Adelson, President and CEO
03Detailed Report
JKHY
Company JKHY
Period
Q1 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 14, 2026
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Executive Summary
Jack Henry & Associates delivered a standout first quarter of fiscal 2026, underscoring the company’s ongoing transformation into a cloud-native, API-first platform tied to a broad payments and digital banking ecosystem. Non-GAAP revenue reached $636 million, up 8.7% year over year, exceeding the 7%–7.5% guidance implied in August and marking another quarter of meaningful margin expansion (non-GAAP operating margin +227 bps to 27.2%). Management highlighted strong private-cloud migration momentum, with 7 client migrations in Q1 and a 77% private-cloud penetration among core clients, reinforcing the strategic value of the cloud-first framework. The Victor Technologies acquisition closed on September 30, expanding the company’s payments-as-a-service and embedded-finance capabilities and creating a path to diversify revenue through treasury management and fintech collaboration.
Key Performance Indicators
Revenue
Increasing
644.74M
QoQ: 10.20% | YoY: 15.15%
Gross Profit
Increasing
296.17M
45.94% margin
QoQ: 21.13% | YoY: 27.31%
Operating Income
Increasing
184.07M
QoQ: 32.67% | YoY: 46.52%
Net Income
Increasing
143.99M
QoQ: 29.59% | YoY: 42.46%
EPS
Increasing
1.97
QoQ: 28.76% | YoY: 41.73%
Revenue Trend
Margin Analysis
Financial Highlights
Summary of Q1 FY2026 financial metrics and notable trends:
- Revenue: GAAP revenue $644.74 million (+7% YoY); Non-GAAP revenue $636 million (+8.7% YoY) and up 8% even excluding the Connect conference timing shift, per management.
- Gross Profit: $296.17 million; Gross margin 45.94% (gross profit/revenue).
- Operating Income: $184.07 million; Operating margin 28.55%.
- Net Income: $143.99 million; Net margin 22.33%.
- Earnings: Diluted GAAP EPS $1.97; Non-GAAP EBITDA of $243.10 million; EBITDA margin 37.7% (EBITDA/ revenue).
- Margin expansion: Non-GAAP operating margin expanded by 227 bps YoY to 27.2%.
- Recurring revenue: Total recurring revenue exceeded 91% of total.
- Cloud and data: Private cloud revenue grew 7% QoQ, now 30% of total revenue. Cloud offerings are a meaningful driver of reoccurring revenue.
- Balance sheet and liquidity: Cash and cash equivalents $39.87 million; total assets $2.932 billion. Total debt $170 million; net debt $130.13 million. Share repurchases $100 million year-to-date through October; Victor acquisition completed; dividends $42 million paid.
- Free cash flow: Free cash flow $51.33 million; operating cash flow $107.85 million; capex $56.52 million. Trailing ROIC: 22% (TTM) vs 20% prior year.
- Guidance: FY26 GAAP revenue growth 4.9%–5.9%; Non-GAAP revenue growth 6%–7%; Non-GAAP margin expansion 30–50 bps; GAAP tax rate 23.75%; GAAP EPS $6.38–$6.49; Free cash flow conversion 85%–100%.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
644.74M
15.15%
10.20%
Gross Profit
296.17M
27.31%
21.13%
Operating Income
184.07M
46.52%
32.67%
Net Income
143.99M
42.46%
29.59%
EPS
1.97
41.73%
28.76%
Key Financial Ratios
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