JKHY

Research · Sep 3, 2026

[JKHY] Jack Henry Thesis 2026: Community Bank IT Outsourcing Compounds Through Banno Digital

Jack Henry & Associates Inc. FY2025 revenue ~$2.2-2.3B (+5-7%) with adj. EPS ~$5.65-5.85 reflecting continued post-2023 community bank IT spending normalization + selected Banno digital banking platform growth + selected Symitar credit union platform growth + selected operational excellence under continued CEO Greg Adelson (since November 2023). Leading US community bank + credit union IT outsourcing firm; founded 1976 by Jack Henry + Jerry Hall in Monett Missouri (originally as community bank IT outsourcing firm; IPO 1985 ~$30M raised; selected ~49+ year heritage as one of longest-tenured publicly-listed financial technology firms); headquartered in Monett Missouri; ~7,000+ employees with ~$2.2-2.3B revenue across 7,500+ community financial institution clients; fiscal year ends ~June. 4 segments: Core 33% ($0.7B — SilverLake selected enterprise core banking + CIF 20/20 selected mid-tier core + Symitar selected credit union core; selected ~7,500+ community FI clients; ~25-30% segment margin) + Payments 31% ($0.7B — card processing + ATM + selected merchant services + wire/ACH) + Complementary 32% ($0.7B — Banno digital banking platform selected ~30%+ YoY growth + selected fraud + selected risk + selected lending technology) + Corporate & Other 4% ($0.1B). Selected ~85%+ recurring revenue subscription characteristics + selected ~95%+ contract retention. CEO Greg Adelson since November 1, 2023 (succeeded David Foss CEO 2016-November 2023 retired; Adelson ex-Jack Henry COO 2018-2023 + ex-Jack Henry President 2018-2024 + ex-FIS Senior Vice President + ~30-year financial services executive career). Capital return: dividend $2.16-2.28/share annual (~33 consecutive year increases — Dividend Aristocrat 25+) + buybacks $0.1-0.3B (selected modest); investment-grade A2/A credit rating equivalent (no formal rating; selected high credit quality); net cash position. FY2026 thesis: Banno digital banking growth + community bank IT outsourcing stability + Symitar credit union growth + capital return. Risks: community bank consolidation, competitive intensity (Fiserv + FIS + Q2 + nCino), GenAI commoditization, fintech disruption.