Jack Henry & Associates (NASDAQ:JKHY) Shares Gap Up Following Better-Than-Expected Earnings

Shares of Jack Henry & Associates, Inc. (NASDAQ:JKHY) gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $153.12, but opened at $163.80. Jack Henry & Associates shares last traded at $165.9160, with a volume of 174,314 shares traded.

The technology company reported $1.57 EPS for the quarter, beating the consensus estimate of $1.44 by $0.13. Jack Henry & Associates had a return on equity of 24.03% and a net margin of 20.64%.The company had revenue of $633.10 million during the quarter, compared to analysts’ expectations of $631.60 million. During the same quarter in the previous year, the business earned $1.75 EPS. The firm’s revenue was up 4.6% on a year-over-year basis. Jack Henry & Associates has set its FY 2027 guidance at 7.330-7.380 EPS.

Jack Henry & Associates News Roundup

Here are the key news stories impacting Jack Henry & Associates this week:

• Positive Sentiment: Jack Henry reported fourth-quarter adjusted earnings of $1.57 per share, above the $1.44 analyst consensus, while revenue of $633.1 million also exceeded estimates of approximately $631.6 million. Strong demand for banking and payments offerings supported the results. Reuters report on Jack Henry quarterly results
• Positive Sentiment: Management provided fiscal 2027 EPS guidance of $7.33 to $7.38, above the $7.10 consensus estimate. Revenue guidance of roughly $2.7 billion was broadly in line with expectations, but the earnings outlook suggests potential operating leverage and solid demand. Jack Henry fiscal 2026 results and fiscal 2027 guidance
• Neutral Sentiment: Fiscal fourth-quarter revenue increased approximately 4.6% to 4.7% year over year, indicating continued growth, while the company maintained a strong 20.64% net margin and 24.03% return on equity.
• Negative Sentiment: GAAP EPS declined from $1.75 to $1.57 year over year, a contraction of 10.2%. GAAP operating income fell 12.2%, while adjusted operating income decreased 3.1%, pointing to margin pressure despite the revenue and earnings beats. Zacks analysis of Jack Henry quarterly metrics

Analysts Set New Price Targets

A number of research firms have recently commented on JKHY. Stephens restated an “overweight” rating and set a $200.00 price objective on shares of Jack Henry & Associates in a report on Tuesday, August 11th. Weiss Ratings cut Jack Henry & Associates from a “hold (c)” rating to a “hold (c-)” rating in a report on Friday, May 29th. DA Davidson reissued a “buy” rating and set a $198.00 price target on shares of Jack Henry & Associates in a research report on Wednesday. The Goldman Sachs Group lowered their price target on Jack Henry & Associates from $180.00 to $161.00 and set a “neutral” rating for the company in a research report on Thursday, May 7th. Finally, UBS Group set a $165.00 price target on Jack Henry & Associates in a research note on Thursday, May 7th. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $187.27.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Dearborn Partners LLC purchased a new stake in shares of Jack Henry & Associates in the second quarter worth about $10,874,000. Public Employees Retirement System of Ohio purchased a new stake in shares of Jack Henry & Associates during the 2nd quarter valued at about $3,067,000. American Capital Management Inc. purchased a new stake in shares of Jack Henry & Associates during the 2nd quarter valued at about $13,764,000. Danske Bank A S acquired a new position in Jack Henry & Associates during the 2nd quarter worth approximately $124,000. Finally, Summit Creek Advisors LLC acquired a new position in Jack Henry & Associates during the 2nd quarter worth approximately $296,000. Institutional investors and hedge funds own 98.75% of the company’s stock.

Jack Henry & Associates Stock Performance

The stock has a market cap of $11.85 billion, a PE ratio of 23.29, a PEG ratio of 2.16 and a beta of 0.55. The stock has a fifty day simple moving average of $144.82 and a two-hundred day simple moving average of $151.25. The company has a debt-to-equity ratio of 0.04, a quick ratio of 1.74 and a current ratio of 1.74.

Jack Henry & Associates Company Profile

Jack Henry & Associates, Inc is a leading provider of technology solutions and payment processing services for the financial services industry. Founded in 1976 and headquartered in Monett, Missouri, the company develops and supports a comprehensive suite of software and services designed to help banks, credit unions and other financial institutions streamline operations, improve customer engagement and manage risk.

The company’s core processing platforms deliver end-to-end account processing, general ledger, deposit operations and loan servicing functionality.