Jack Henry & Associates, Inc.

Q4 non-GAAP revenue was $633 million, up 7% year over year; GAAP revenue increased 5%. Q4 non-GAAP operating margin was 21%, and full-year non-GAAP operating margin was 24%, up 92 basis points year over year. Q4 GAAP diluted EPS was $1.57, down 10%, while full-year GAAP EPS was $6.98, up 12%. Full-year non-GAAP revenue was $2.5 billion, up 7%. Cash flow was strong: Q4 operating cash flow was $303 million and free cash flow was $245 million; full-year free cash flow was $539 million, up 31%. For fiscal 2027, management guided to GAAP revenue growth of 5.5% to 6.5%, non-GAAP revenue growth of 6.3% to 7.3%, full-year non-GAAP margin expansion of 20 to 40 basis points, GAAP EPS of $7.33 to $7.38, and free cash flow conversion of 85% to 100%. They also guided to $23 million of deconversion revenue, with $11 million in Q1. Management said Q1 non-GAAP revenue growth should come in modestly below the low end of the full-year range due mainly to a 1% impact from the timing shift of Connect plus some one-time revenue items.

Greg Adelson framed fiscal 2026 as a milestone year driven by record sales, stronger execution, and an expanding competitive position. He emphasized the company is winning larger institutions, increasing trifecta deals, and seeing benefits from its public cloud-native platform and innovation strategy, especially in AI, digital, payments, and treasury. His tone was confident and upbeat, and he repeatedly pointed to momentum heading into fiscal 2027 and beyond.

Mimi Carsley focused on the mechanics behind the quarter and the outlook. She cited 7% Q4 non-GAAP revenue growth, 21% Q4 non-GAAP margin, 24% full-year non-GAAP margin, and $539 million of full-year free cash flow, up 31%, while noting $448 million of share repurchases, $170 million of dividends, and debt of $40 million at quarter-end. For fiscal 2027, she said margin expansion should be 20 to 40 basis points but highlighted headwinds from medical cost normalization, cyber and infrastructure investments, frontier model work, and the EC2030 data center consolidation project.

Analysts focused on whether record core wins can continue, the impact of competitive disruption, and whether Jack Henry can keep moving upmarket. Management said the company is already exceeding last year’s early core-win pace and now expects 58 to 65 core wins in fiscal 2027; Greg Adelson also said Jack Henry is taking share broadly, not just from one competitor. Questions also centered on AI costs, margin durability, and the revenue impact of Connect moving from Q1 to Q2; Mimi Carsley said the conference timing reduces Q1 growth by about 1% and that the conference typically contributes about $6 million of revenue and $10 million of expense.