Jack Henry stock up 2% as fourth quarter earnings surpass expectations on strong sales wins

Published 19/08/2025, 21:32
 Jack Henry stock up 2% as fourth quarter earnings surpass expectations on strong sales wins

MONETT, Mo. - Jack Henry & Associates, Inc. (NASDAQ:JKHY) shares rose 2.7% after the financial technology provider posted fourth-quarter results that exceeded analyst expectations, driven by strong growth across all business segments.

The company reported adjusted earnings per share of $1.75 for the quarter ended June 30, 2025, significantly beating the analyst consensus of $1.55. Revenue climbed 9.9% YoY to $615.37 million, surpassing the $601.33 million consensus estimate. On a non-GAAP basis, adjusted revenue increased 7.5% to $594.88 million.

"Our fourth quarter and full 2025 fiscal year results reflect solid overall performance," said Greg Adelson, President and CEO. "Our strong fourth-quarter sales wins for core, complementary and payment solutions, along with our ongoing success winning larger financial institutions and maintaining a very healthy pipeline for fiscal year 2026, demonstrate the continued strength in technology spending."

The company’s core segment led growth with a 10.3% revenue increase, while the complementary segment grew 12.9% and payments segment rose 7.9%. Operating income jumped 23.9% to $155.7 million, with operating margin expanding to 25.3% from 22.4% in the same quarter last year.

For fiscal 2026, Jack Henry provided guidance for revenue between $2.46 billion and $2.49 billion, with adjusted operating margin expected between 23.4% and 23.6%.

The company ended the fiscal year with $102 million in cash and no debt, compared to $38.3 million in cash and $150 million in debt a year earlier, reflecting significantly improved financial health.

Jack Henry continues to gain market share, securing 51 new core wins in fiscal year 2025, with particular success among larger financial institutions that recognize the value of its technology roadmap and strategic partnerships.

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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