Q2 2026 Jack Henry & Associates Inc Earnings Call Transcript
Key Points
- Jack Henry & Associates Inc (JKHY) reported record second quarter results with non-GAAP revenue of $611 million, up 6.7% year-over-year.
- The company achieved a non-GAAP operating margin of 25.1%, representing a robust 355 basis points of margin expansion over the previous year.
- Jack Henry & Associates Inc (JKHY) secured 22 competitive core wins, including four financial institutions with over $1 billion in assets.
- The company has seen significant growth in its core market share, with a 17% increase among banks and a 40% increase among credit unions over the past eight years.
- Jack Henry & Associates Inc (JKHY) continues to innovate with new solutions like Tap2Local and Rapid Transfers, which are gaining traction in the market.
- The company's non-GAAP revenue growth was negatively impacted by the shift of its Connect Client Conference into Q1 from Q2.
- There is a projected slowdown in non-GAAP revenue growth in the second half of the fiscal year due to anticipated slower momentum in one-time revenue and cards.
- Expenses are expected to increase in the second half due to higher medical cost benefits returning to historical levels and cloud migration infrastructure expenses.
- The payments segment is tracking slightly below the medium-term growth guide halfway through the year.
- Despite strong performance, the company faces ongoing competitive pressures in the core systems and ancillary services market.
Good morning, and welcome to the Jack Henry second quarter fiscal 2026 earnings conference call. (Operator Instructions). At this time, I would like to turn the conference over to Vance Sherard, Vice President, Investor Relations. Please go ahead, sir.
Thank you, Chris. Good morning, and thank you for joining the Jack Henry Second Quarter Fiscal 2026 Earnings Call. Joining me today are Greg Adelson, President and CEO; and Mimi Carsley, CFO and Treasurer.
Following my opening remarks, Greg will provide an overview of our quarterly results and key performance metrics, along with updates on our strategic initiatives. Mimi will then discuss the financial results and updated fiscal 2026 guidance provided in yesterday's press release, which is available in the Investor Relations section of the Jack Henry website. Afterwards, we will open the lines for a Q&A session.
Please note that this call includes forward-looking statements, which involve risks and
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