DA Davidson maintains $212 target on Jack Henry stock post-earnings

Published 08/05/2025, 16:44
DA Davidson maintains $212 target on Jack Henry stock post-earnings

On Thursday, DA Davidson reiterated its Buy rating on Jack Henry & Associates, Inc. (NASDAQ:JKHY) with a steady price target of $212.00. The affirmation came after the company disclosed its fiscal third-quarter 2025 results, which showcased revenues aligning closely with analyst expectations and earnings surpassing both DA Davidson’s and the consensus estimates.

Jack Henry & Associates, a leading provider of technology solutions and payment processing services for the financial services industry, reported that for fiscal year 2025, the company’s management anticipates a year-over-year growth of 6%-7% in Non-GAAP revenue. Additionally, they project approximately 9% year-over-year growth in Non-GAAP operating income and an increase of 10%-11% year-over-year in Non-GAAP EPS.

The company’s financial performance reflects a strong execution of its business strategy, which seems to be resonating well with its customer base. The slight adjustments made by DA Davidson to their forecasts after the third-quarter update are not significant on an annual basis, indicating a stable outlook for the company.

Peter Heckmann of DA Davidson commented on the results, noting the alignment of total revenue with forecasts and the higher-than-expected earnings measures. The company’s ability to exceed earnings forecasts while maintaining steady revenue growth demonstrates its operational efficiency and the potential for continued financial health.

Investors and stakeholders of Jack Henry & Associates can take note of the company’s solid performance and DA Davidson’s reaffirmed confidence in the stock’s value. The financial technology firm’s trajectory of steady growth in key financial metrics suggests a positive outlook for the upcoming fiscal periods.

In other recent news, Jack Henry & Associates Inc. reported its third-quarter earnings for 2025, surpassing analysts’ expectations with an earnings per share (EPS) of $1.52, compared to a forecast of $1.36. However, the company’s revenue slightly missed projections, coming in at $585.09 million versus the anticipated $586.69 million. Despite the earnings beat, Jack Henry revised its full-year revenue growth guidance to 6-6.5%, citing macroeconomic pressures. The company demonstrated strong performance in digital and cloud-based solutions, with a 9.8% increase in key revenue streams. Analysts expressed concern over the company’s cautious revenue guidance and broader economic conditions affecting future growth. Jack Henry’s non-GAAP operating margin expanded by 207 basis points to 23%, reflecting efficient cost management. The company continues to focus on cloud migration and digital solutions, with new products like Rapid Transfers aimed at small and medium-sized businesses.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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