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

Jack Henry & Associates, Inc. (NASDAQ:JKHY)’s stock price gapped up before the market opened on Wednesday following a better than expected earnings announcement. 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 earnings per share 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 for the quarter, compared to analyst estimates of $631.60 million. During the same quarter in the prior year, the company earned $1.75 earnings per share. Jack Henry & Associates’s revenue was up 4.6% compared to the same quarter last year. 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 equities analysts have issued reports on JKHY shares. DA Davidson restated a “buy” rating and set a $198.00 target price on shares of Jack Henry & Associates in a research report on Wednesday. Weiss Ratings lowered shares of Jack Henry & Associates from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, May 29th. Oppenheimer reissued an “outperform” rating and set a $209.00 price objective on shares of Jack Henry & Associates in a research note on Wednesday. Morgan Stanley set a $170.00 price objective on Jack Henry & Associates in a research report on Friday, May 8th. Finally, Wolfe Research set a $165.00 target price on Jack Henry & Associates in a research note on Monday, June 29th. Two analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $187.27.

Hedge Funds Weigh In On Jack Henry & Associates

A number of institutional investors have recently modified their holdings of JKHY. State Street Corp grew its stake in Jack Henry & Associates by 2.4% in the 3rd quarter. State Street Corp now owns 4,103,290 shares of the technology company’s stock worth $611,103,000 after acquiring an additional 97,140 shares during the period. Invesco Ltd. raised its holdings in Jack Henry & Associates by 9.5% in the 3rd quarter. Invesco Ltd. now owns 1,800,777 shares of the technology company’s stock valued at $268,190,000 after acquiring an additional 155,616 shares during the last quarter. Wells Fargo & Company MN lifted its stake in shares of Jack Henry & Associates by 4.9% during the 4th quarter. Wells Fargo & Company MN now owns 1,415,221 shares of the technology company’s stock worth $258,250,000 after purchasing an additional 66,633 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of Jack Henry & Associates by 160.2% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,350,393 shares of the technology company’s stock worth $246,420,000 after purchasing an additional 831,372 shares during the last quarter. Finally, Janus Henderson Group PLC boosted its holdings in shares of Jack Henry & Associates by 13,343.0% during the first quarter. Janus Henderson Group PLC now owns 1,078,398 shares of the technology company’s stock worth $170,430,000 after purchasing an additional 1,070,376 shares during the last quarter. Institutional investors and hedge funds own 98.75% of the company’s stock.

Jack Henry & Associates Stock Performance

The firm has a market cap of $11.85 billion, a PE ratio of 23.29, a P/E/G ratio of 2.16 and a beta of 0.55. The company has a debt-to-equity ratio of 0.04, a current ratio of 1.74 and a quick ratio of 1.74. The stock has a 50-day moving average price of $144.82 and a 200 day moving average price of $151.25.

About Jack Henry & Associates

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.