
JKHY Stock Forecast & Price Target
JKHY Analyst Ratings
Bulls say
Jack Henry & Associates exhibited impressive financial performance in F4Q25, with GAAP operating margins increasing to 25.3%, reflecting a robust year-over-year expansion due to surging deconversion fees and effective expense management. The company maintained strong demand for its core and complementary services, achieving 51 core wins and 47 new contracts, which illustrates its capacity to capture market share while benefiting from favorable tax legislation that will enhance free cash flow conversion significantly. Furthermore, Jack Henry's commitment to debt reduction provides financial flexibility for further acquisitions, ensuring sustainability and growth in a favorable economic and regulatory landscape.
Bears say
Jack Henry & Associates is facing a negative outlook primarily due to a conservative estimate of deconversion fee revenue, which has declined by $8 million year-over-year, translating to a significant headwind of 16 cents to the earnings per share (EPS) forecast. Additionally, the company encounters multiple risk factors, including increased competition, potential margin deterioration linked to payment platform migrations, and ongoing consolidation within the banking industry, which could further impair growth. Furthermore, if the trend of bank failures accelerates or a prolonged global recession occurs, it may lead to decreased technology spending among banks, adversely affecting Jack Henry's organic growth and overall financial performance.
This aggregate rating is based on analysts' research of Jack Henry & Associates and is not a guaranteed prediction by Public.com or investment advice.
JKHY Analyst Forecast & Price Prediction
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