Jack Henry & Associates demonstrates a rare four-quarter perfect beat streak, high-quality net margins of 21%, and 25.5% upside to the analyst target at a 4-to-1 risk/reward—but a confirmed price downtrend at -2.6% per month slope and elevated leverage create timing risk for new positions despite the quality and asymmetry credentials.
Thesis pillars
- High Quality Margins Piotroski→Stable
- Four Quarter Perfect Beat Streak→Stable
- Favorable 25pct Upside Asymmetry↑Improving
- +1 more pillar — see the Why tab for full reasoning
Jack Henry & Associates, Inc. (JKHY) Stock Analysis
Range Bound setup
Technology · Information Technology Services
Sell if holding. At $161.40, A.R:R 0.9:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 7.0%; Sector modifier (Technology): -0.8.
Jack Henry & Associates is a financial technology company providing core data processing systems and complementary/payment products to approximately 7,400 community and regional banks, credit unions, and diverse corporate entities. The company operates three core banking... Read more
Sell if holding. At $161.40, A.R:R 0.9:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 7.0%; Sector modifier (Technology): -0.8. Chart setup: RSI 42 mid-range, Bollinger mid-band. Score 5.1/10, moderate confidence.
Passes 5/8 gates (clean insider activity, news events none recent, earnings proximity 51d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.
About Jack Henry & Associates, Inc.
About Jack Henry & Associates, Inc.
Jack Henry & Associates serves approximately 7,400 financial institutions and corporate entities, including over 950 banks on its SilverLake, CIF 20/20, and Core Director core platforms and roughly 715 credit unions on its Symitar core platform. The company derives most of its revenue from products and services sold to the financial services industry, and it has completed 35 strategic acquisitions since fiscal 1999 to expand its complementary and payments product lines, most recently Payrailz in fiscal 2023.
Jack Henry earns revenue from software license fees, hardware resales, and recurring support and services — the majority of which comes from six-year hosted private/public cloud contracts and electronic payment processing agreements, plus one-year contracts for on-premise clients; annual software support fees are typically priced at about 20% of the underlying license fee. The company re-markets third-party hardware from IBM, Lenovo, Dell, Hewlett Packard Enterprise, and Cisco to support on-premise installations, and its technology-modernization strategy centers on the Jack Henry Platform, a public cloud-native, API-first alternative to legacy core systems. As Jack Henry shifts more computing and hosting to outside providers, its 10-K notes that reliance is concentrated among certain third-party vendors that supply large portions of its hosting needs, and payment processing depends on card networks and faster-payment rails including Visa, Mastercard, Zelle, FedNow, and RTP.
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Jack Henry is directly examined as a bank service provider, not just indirectly through its clients: the OCC, Federal Reserve Board, FDIC, Consumer Financial Protection Bureau, and National Credit Union Association all conduct ongoing supervision and examination of the company's operations. That direct regulatory relationship means examiner findings can require costly remediation on a timeline set by regulators rather than the company, and the same consolidation trend that has cut the number of U.S. banks 13% and credit unions 15% between 2019 and 2024 also shrinks Jack Henry's addressable client base independent of how well it competes on product.
See also: Technology · Information Technology Services
From Jack Henry & Associates, Inc.'s most recent 10-K filing, extracted September 6, 2026.
Recent developments
updated 2026-09-14Recent Developments — Jack Henry & Associates, Inc.
Latest news
- NEWS Quantinno Capital Management LP Purchases 285,893 Shares of Jack Henry & Associates, Inc. $JKHY - MarketBeat — MarketBeat positive
- NEWS Jack Henry & Associates Inc. stock outperforms competitors despite losses on the day - MarketWatch — MarketWatch positive
- NEWS Jack Henry stock trades steadily as recurring revenue supports valuation - AD HOC NEWS — AD HOC NEWS positive
- NEWS Jack Henry stock trades steadily as recurring revenue supports valuation - Ad-hoc-news.de — Ad-hoc-news.de positive
- NEWS AI Worries Weighed on Jack Henry (JKHY) in Q2 - Yahoo Finance — Yahoo Finance negative
Generated 2026-09-14T07:57:09Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomerfinancial services industry (banks & credit unions)10-K Item 1A: 'We derive most of our revenue from products and services we provide to the financial services industry.'
- MEDIUMSupplierthird-party hosting vendors (concentrated)10-K Item 1A: 'This reliance is further concentrated as we use certain third-party vendors to provide large portions of our hosting needs.'
Material Events(8-K, last 90d)
- 2026-06-04Item 5.02MEDIUMDavid B. Foss, Board Chair since 2021 and CEO from 2016-2024, notified the board of his intent to retire as director effective July 15, 2026. Reason cited: retirement, not a disagreement with the company. No successor named.SEC filing →
- 2026-03-26Item 1.02MEDIUMOn March 25, 2026, the company entered a new $1.0 billion five-year unsecured revolving credit agreement with U.S. Bank as administrative agent, terminating and refinancing its existing $600 million facility (about $80 million outstanding, no early-termination penalty).SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $161.40, A.R:R 0.9:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 7.0%; Sector modifier (Technology): -0.8. Chart setup: RSI 42 mid-range, Bollinger mid-band. Prior stop was $152.96. Score 5.1/10, moderate confidence.
Take-profit target: $172.38 (+7.0% upside). Prior stop was $152.96. Stop-loss: $152.96.
Thin upside margin: 7.0%; Sector modifier (Technology): -0.8; Weak growth.
Jack Henry & Associates, Inc. trades at a P/E of 23.1 (forward 20.6). TrendMatrix value score: 5.4/10. Verdict: Sell.
23 analysts cover JKHY with a consensus score of 4.0/5. Average price target: $192.
What does Jack Henry & Associates, Inc. do?Jack Henry & Associates is a financial technology company providing core data processing systems and...
Jack Henry & Associates is a financial technology company providing core data processing systems and complementary/payment products to approximately 7,400 community and regional banks, credit unions, and diverse corporate entities. The company operates three core banking platforms (SilverLake, CIF 20/20, Core Director) serving over 950 banks and one core credit union platform (Symitar) serving approximately 715 credit unions. Jack Henry has completed 35 strategic acquisitions since fiscal 1999, most recently Payrailz in fiscal 2023.