Jack Henry stock price target lowered to $178 at KBW on revenue pressures

Investing.com - Keefe, Bruyette & Woods (KBW) has lowered its price target on Jack Henry (NASDAQ:JKHY) to $178.00 from $183.00 while maintaining an Outperform rating on the stock.

The price target reduction comes as KBW analyst Vasundhara Govi noted "short-term pressures on top line" for the financial technology provider, though these challenges were "largely anticipated" by the market. Despite these pressures, Jack Henry maintains a solid financial foundation with a GOOD overall health score according to InvestingPro analysis.

KBW indicated that while revenue pressure in fiscal year 2026 is not surprising, investors are questioning whether these headwinds relative to Jack Henry’s target growth range of 7-8% are temporary or more persistent.

The firm highlighted that Jack Henry’s "underlying growth drivers remain intact," pointing to "robust new sales momentum and new products" that could provide a path to growth reacceleration.

KBW also flagged potential risks, noting that "continued acceleration in bank M&A could extend the pressure beyond F2026," though the firm maintains its Market Perform stance on the company.

In other recent news, Jack Henry & Associates Inc. reported its fourth-quarter 2025 earnings, surpassing analyst expectations. The company achieved an earnings per share of $1.75, exceeding the forecasted $1.55, and reported revenue of $615.37 million, which was higher than the anticipated $601.33 million. Despite this positive performance, Raymond (NSE:RYMD) James maintained its Market Perform rating on Jack Henry, noting that the company’s fiscal year 2026 revenue guidance was slightly below consensus expectations. The guidance for FY26 revenue is set between $2,459 million and $2,488 million, approximately 1% below consensus estimates. This implies a reported growth of 5.6% at the midpoint, with potential growth ranging from 5.8% to 7.0% when excluding a $16 million headwind from restructuring a third-party agreement. These developments highlight the mixed outlook for Jack Henry, with strong recent earnings but cautious future revenue projections.

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