JKHY - Early Thoughts on Set Up into FY27

Research evidence excerpt

JKHY - Early Thoughts on Set Up into FY27

Payments, Processors, & IT Services

Payments & Processors - Market Overweight

JACK HENRY & ASSOCIATES, INC. (JKHY) June 29, 2026

JKHY - Early Thoughts on Set Up into FY27 Rating:

Outperform

The Wolfe Byte Price: $128.71

While implied F4Q26 results may look softer, we see that as largely noise, with Price Target:

FY27 likely returning to ~7% adj. growth and 20-40bps of margin expansion as $165

core wins build and newer products ramp. We continue to view JKHY as a clean Prior: $180

% Upside:

structural compounder. Reit OP rating. 28.2%

View JKHY Model

●Overview: While investor sentiment in late 2025/early 2026 had become View Comp Table

increasingly constructive around JKHY's potential to win incremental core deals Company Information

above its ~50-55 annual range (ex. 1-2), there has been more debate on the 52-Week Range $123 - $193

name, underscored by YTD underperformance in shares. Questions include: 1) Market Cap. (MM) $9,145

Enterprise Value (MM) $9,380

reality of the core win upside pot'l, 2) when those wins will convert to revenue, Shares Out. (MM) 71.1

3) how exposed JKHY (and the sector) may be to AI disruption, and 4) whether Avg. Value Traded (MM) $144.18

slower implied F4Q26 guidance should be used to determine FY27 growth SI% of Float 7.9%

potential.

●We continue to view JKHY as one of the cleanest structural compounders 170

in our coverage, and while FY27 may not look materially different from 160150

FY26, we continue to see the exit rate from FY27 into FY28 re-accelerating 140 130

as incremental core wins roll through and newer products become more 120

meaningful contributors to revenue. 110 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26

JKHY

Source: FactSet