Jack Henry & Associates, Inc. JKHY is scheduled to report fourth-quarter fiscal 2026 results on Aug. 18, after market close.
For the fiscal fourth quarter, the Zacks Consensus Estimate for sales is pegged at $628.3 million, indicating growth of 2.1% from the prior-year quarter’s reported figure.
The consensus mark for earnings is pegged at $1.43 per share, suggesting a decrease of 18.3% from the year-ago quarter’s reported figure.
The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.96%.
Jack Henry & Associates, Inc. Price and EPS Surprise
Jack Henry & Associates, Inc. price-eps-surprise | Jack Henry & Associates, Inc. Quote
Let’s see how things are shaping up for this announcement.
Factors Likely to Influence JKHY’s Q4 Results
Jack Henry’s fiscal fourth-quarter results are likely to benefit from growing momentum in services and support categories. The Zacks Consensus Estimate for services and support revenues is pegged at $357.2 million, indicating growth of 1.7% from the year-ago quarter’s reported figure.
Strength across the Core segment due to continued migration from on-premise to private cloud and robust growth in its public cloud offerings is expected to aid the upcoming results. Increasing demand for the Jack Henry Platform, a single public cloud-native platform designed to run the entire financial institution, and the company’s growing technology modernization strategies might have been other positives. The consensus estimate for the Core segment’s revenues is pinned at $194.5 million, indicating a rise of 2.6% from the year-ago reported figure.
Strength across the Payments segment due to robust card transaction solutions and growth in its Enterprise Payment Solutions business is likely to have acted as a tailwind for the company in the quarter under review. Moreover, JKHY’s strong sales across Financial Crimes Defender and continued expansion of faster payments infrastructure, PayCenter, are likely to have driven its Payments segment in the to-be-reported quarter. The consensus mark for Payments revenues is pegged at $234.2 million, implying growth of 2.2% year over year.
The company’s diverse mix of solutions, including Banno, Financial Crimes Defender and Fraud & Risk Management Add-ons, is expected to have driven growth in the Complementary segment during the fiscal fourth quarter. The consensus estimate for Complementary revenues is pegged at $178.4 million, indicating an increase of 1.9% from the year-ago quarter.
However, Management expects slower digital revenue growth in the fourth quarter compared with the previous three quarters because of lower active-user growth, some pressure on card revenues and risk-management revenues, and lower one-time network incentive revenues. Further, higher medical costs, cloud migration infrastructure spending and commissions are also expected to have weighed on the company’s margins during the fourth quarter of fiscal 2026.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for JKHY this season. The combination of a positive Earnings ESP and Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.
JKHY currently has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks you may want to consider in the broader Zacks Computer and Technology sector, as our model shows that these have the right combination of elements to post an earnings beat:
Analog Devices ADI has an Earnings ESP of +2.37% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Analog Devices is slated to report third-quarter fiscal 2026 results on Aug. 19. The Zacks Consensus Estimate for ADI’s third-quarter earnings is pegged at $3.33 per share, up by a penny over the past 30 days, indicating a rise of 62.4% from the year-ago quarter’s reported figure.
OSI Systems OSIS has an Earnings ESP of +1.86% and carries a Zacks Rank #2 at present.
OSI Systems is set to report fourth-quarter fiscal 2026 results on Aug. 20. The Zacks Consensus Estimate for OSI Systems’ fourth-quarter earnings is pegged at $3.76 per share, up by 2 cents over the past 30 days, indicating a rise of 16.1% from the year-ago quarter’s reported figure.
NVIDIA NVDA has an Earnings ESP of +0.52% and carries a Zacks Rank #2 at present.
NVIDIA is set to report second-quarter fiscal 2027 results on Aug. 26. The Zacks Consensus Estimate for NVIDIA’s second-quarter earnings is pegged at $2.09 per share, up by 2 cents over the past 60 days, indicating a rise of 99.1% from the year-ago quarter’s reported figure.
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Jack Henry & Associates, Inc. (JKHY): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).