Update shared on27 Aug 2025
Fair value Decreased 3.23%Analysts have lowered their price target for Jack Henry & Associates to $185.09 due to a lighter-than-expected FY26 outlook impacted by industry consolidation, contract restructuring, slower new account growth, and expected price compression, despite ongoing product wins.
Analyst Commentary
- Strong Q4 sales bookings and a solid sales pipeline provided support, but positive impact on forecasts was modest.
- Fiscal 2026 revenue outlook faces pressure due to industry consolidation, particularly from accelerating bank mergers.
- Company guidance for FY26 came in lighter than expected, attributed to restructuring of a third-party contract and deceleration in new accounts at banks and credit unions.
- Price compression seen in contract renewals is expected to weigh on future revenue.
- Bullish analysts remain positive due to consistent wins in core and complementary products, despite the headwinds reflected in lowered price targets.
What's in the News
- Keefe Bruyette lowered Jack Henry's price target to $178–$180 (from $183) following fiscal Q4 results, citing revenue pressure expected to persist through fiscal 2026 and warning that accelerated bank mergers could extend these headwinds (Keefe Bruyette, Periodicals).
- Jack Henry expanded its 15-year alliance with MeridianLink, which will now allow Jack Henry to resell the suite of MeridianLink One platform solutions, including consumer and mortgage lending, to over 500 banks and credit unions, broadening its digital lending and account opening offerings (Key Developments).
- The company provided fiscal 2026 guidance, expecting revenue between $2.475 billion and $2.504 billion and EPS of $6.32 to $6.44 (Key Developments).
- Jack Henry recently launched strategic new products: Tap2Local, a digital SMB payments solution developed with Moov, and MyFinancialHealth, a suite of embedded financial wellness tools powered by Array—both designed to drive digital engagement and new fee-based revenue for financial institutions (Key Developments).
- Several banks and credit unions, including Abound Credit Union, First Mid Bank & Trust, and Triangle Credit Union, have recently selected or expanded relationships with Jack Henry to leverage its core platforms, cloud-based solutions, and open ecosystem, aiming to modernize operations and improve client experiences (Key Developments).
Valuation Changes
Summary of Valuation Changes for Jack Henry & Associates
- The Consensus Analyst Price Target has fallen slightly from $191.27 to $185.09.
- The Consensus Revenue Growth forecasts for Jack Henry & Associates has significantly fallen from 7.2% per annum to 6.3% per annum.
- The Future P/E for Jack Henry & Associates has fallen slightly from 30.20x to 29.15x.
Disclaimer
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