Jack Henry & Associates’ faster-payments revenue increased 49.5% during fiscal 2026, while Jack Henry’s digital and transaction revenue rose 11.6% as the financial technology company benefited from rising digital-platform usage and continued adoption of real-time and faster-payment services.
The same trends remained strong in the fiscal fourth quarter. Faster-payments revenue increased 47% year over year, digital and transaction revenue rose 8.6%, and card revenue increased 5.4% as monthly service and risk-management fees grew.
Processing revenue increased to $283.8 million in Q4 from $264.1 million, a gain of 7.5%, while full-year Processing revenue rose 8.2% to approximately $1.10 billion. Processing also increased its share of total annual revenue to 43.1% from 42.7%.
Services and Support remained Jack Henry’s largest revenue category at $1.45 billion for the year, up 6.3%. Growth was supported by an 8.5% increase in data processing and hosting revenue within private and public cloud operations, a 13% increase in consulting, work orders and release fees, a 14.1% increase in implementation revenue and 19.5% growth in license and hardware revenue.
Total fiscal 2026 revenue reached $2.54 billion, up 7.1% from $2.38 billion, while annual GAAP EPS increased 11.9% to $6.98. Q4 revenue rose 4.7% to $644 million, although quarterly GAAP EPS declined 10.2% to $1.57.
Sales activity also reached record levels. Jack Henry recorded 58 competitive core wins during fiscal 2026, including 14 institutions with more than $1 billion in assets. The company said both Q4 and full-year non-GAAP revenue reached record levels.
Cash generation remained particularly strong. Net cash from operating activities increased to $762 million from $641.5 million, while free cash flow rose approximately 31% to $539.3 million from $410.3 million.
Free cash flow conversion excluding proceeds from asset sales reached 100.7% of net income, up from 90%, while operating cash conversion reached 151.6%. Net income for the year was approximately $502.8 million.
Jack Henry returned most of that cash generation through share repurchases. The company bought back $448 million of stock during fiscal 2026 at an average price of $152 per share, including $164 million during Q4 at an average $140 per share.
That capital return significantly reduced available cash. Cash and equivalents ended fiscal 2026 at $12.1 million compared with $102 million a year earlier, while outstanding credit-facility debt increased to $40 million from zero.
For fiscal 2027, Jack Henry expects GAAP revenue of $2.684 billion to $2.709 billion, operating margin of 24.5% to 24.7% and EPS of $7.33 to $7.38. Non-GAAP adjusted revenue is expected at $2.659 billion to $2.684 billion.
The faster-payments growth is particularly notable because it is occurring within a large, established financial technology platform rather than an early-stage payments business. Combined with growing digital usage, cloud revenue and record competitive core wins, it shows where incremental growth is increasingly emerging within Jack Henry’s mature revenue base.
KEY QUOTE:
“We are extremely pleased to report record sales and financial results for fiscal 2026. We delivered a record 58 competitive core wins for the year, including 14 institutions with more than $1 billion in assets, and both fourth-quarter and full-year non-GAAP revenue reached new highs. Technology spending remains strong, which is reflected in our robust sales pipeline as we continue to provide innovative solutions and expand the use of artificial intelligence to help banks and credit unions win in the markets they serve. As we enter fiscal 2027, we are well positioned to continue driving consistent revenue growth, margin expansion, and long-term value through our unwavering focus on culture, service, innovation, strategy, and execution.”
Greg Adelson, President and CEO of Jack Henry
