Jack Henry & Associates reported growth in revenue, operating income and earnings for the first quarter of fiscal 2027, which ended September 30, 2026. The financial technology provider said results exceeded its August outlook and maintained a positive view of customer demand, citing strong sales and a robust pipeline.
The company also reported lower cash and higher borrowing than a year earlier, alongside $71 million of share repurchases. Its full-year fiscal 2027 guidance calls for continued revenue growth and a GAAP diluted EPS range of $7.47 to $7.51.
Key details
- Revenue and operating income grew: Compared with the year-earlier quarter, GAAP revenue rose 8.8% and GAAP operating income increased 12.5%. On an adjusted, non-GAAP basis, revenue grew 7.2% and operating income rose 11.2%.
- Earnings per share increased: GAAP diluted EPS was $2.28, up 15.6% from $1.97 a year earlier. GAAP net income increased 11.4%; adjusted net income grew 10.1%. Non-GAAP EBITDA increased 10.2%.
- Fiscal 2027 guidance: Jack Henry expects full-year GAAP revenue of $2.698 billion to $2.718 billion, a GAAP operating margin of 24.7% to 24.9%, and diluted EPS of $7.47 to $7.51. Its adjusted revenue outlook is $2.667 billion to $2.687 billion, with an adjusted operating margin of 24.1% to 24.3%.
- Guidance assumptions: The full-year outlook assumes the company makes no acquisitions or dispositions during fiscal 2027.
- Cash and borrowing: Cash and cash equivalents were $25.4 million at September 30, compared with $36.2 million a year earlier. Debt outstanding under credit facilities was $85 million, up from $20 million.
- Share repurchases: The company bought back $71 million of its stock during the quarter at an average price of $153.47 per share.
- Management’s assessment: CEO Greg Adelson said customer demand remained strong and that the quarter’s results exceeded the company’s August outlook. He pointed to sales performance and the sales pipeline as signs of momentum.
Plain-English implications
Jack Henry combined double-digit growth in GAAP operating income and EPS with a higher full-year EPS outlook range. At the same time, its cash balance was lower and credit-facility debt higher than a year ago; the company also returned capital through share repurchases.