JACK HENRY & ASSOCIATES INC has recently released its 10-K report. The company describes itself as a financial technology provider serving banks, credit unions, and some corporate clients with core processing, payments, and complementary software and services. Its operations are organized into four segments: Core, Payments, Complementary, and Corporate Services, and it offers products such as SilverLake, Symitar, CIF 20/20, Core Director, and the Banno Digital Platform.
In Item 7, management said the company employed about 7,300 full-time and part-time associates and served more than 7,200 clients, with systems supporting institutions ranging from de novo banks to organizations with up to $55 billion in assets. The company said its revenue comes mainly from two streams: services and support, and processing. Services and support revenue rose 6.3% to $1,448,003, while processing revenue increased 8.2% to $1,096,336.
Total revenue increased 7.1% to $2,544,339 in fiscal 2026 from fiscal 2025. Management said the increase was driven by growth in cloud data processing and hosting, card processing fees, digital and transaction activity, and faster payments, with deconversion revenue and a prior-year contract change affecting the comparison. Operating expenses rose 5.7% to $1,909,306, led by higher personnel costs, direct costs tied to revenue growth, and higher amortization of capitalized software.
Cost of revenue increased 5.4% to $1,433,651, research and development rose 8.4% to $176,445, and selling, general and administrative expenses increased 5.7% to $299,210. Interest income fell 16.6% to $23,144, while interest expense declined to $5,387 from $10,438. The provision for income taxes increased 15.1% to $150,014, and the effective tax rate rose to 23.0% from 22.2%.
Net income climbed 10.3% to $502,776, and diluted earnings per share increased 11.9% to $6.98. Management said the improvement reflected non-acquisition-related revenue growth, partly offset by higher operating expenses and a larger tax provision. The company also said it realigned one product from Corporate Services to Complementary during fiscal 2026. As a result of these announcements, the company's shares have moved 0.05% on the market, and are now trading at a price of $169.73. Check out the company's full 10-K submission here.
