Update shared on03 Oct 2025
Fair value Decreased 1.03%Jack Henry & Associates' analyst price target has been modestly reduced from $185.09 to $183.18 per share. Analysts cite slight adjustments based on updated forecasts and revenue outlook following the latest quarterly results.
Analyst Commentary
Analyst commentary surrounding Jack Henry & Associates following its latest quarterly results reflects a mix of optimism regarding the company's sales momentum and caution stemming from forward-looking revenue considerations. Recent adjustments to price targets and ratings further underscore the nuanced outlook on the stock.
Bullish Takeaways
- Bullish analysts highlight another strong quarter for sales bookings, indicating healthy demand for the company’s offerings and maintaining confidence in the near-term growth trajectory.
- The sales pipeline is described as “very solid,” which supports continued momentum in future quarters and positive execution prospects.
- Forecast changes following the quarterly update are described as modest, suggesting stability in the company's overall performance outlook despite sector challenges.
- Recent strong core and complementary wins demonstrate the company’s ability to secure important deals across business lines, which reinforces long-term valuation potential.
Bearish Takeaways
- Bearish analysts are cautious about revenue pressure anticipated in fiscal 2026, with some risk that ongoing consolidation among banks may extend headwinds beyond that period.
- Management’s guidance was lighter than expected for fiscal 2026, pointing to headwinds such as industry consolidation and price compression in contract renewals.
- Concerns remain over a restructuring of a third-party contract and a deceleration in the number of accounts at banks and credit unions, which could potentially impact future growth.
- Several analysts have modestly lowered their price targets, reflecting a more conservative approach to the company's projected earnings and valuation.
What's in the News
- Keefe Bruyette lowered Jack Henry's price target twice, first from $183 to $180 and then to $178, maintaining a Market Perform rating and noting potential ongoing revenue pressure due to accelerated bank mergers (Keefe Bruyette).
- Jack Henry announced that Mercantile Bank has selected its core processing platform to evolve technology infrastructure, streamline operations, and support long-term growth (Client Announcements).
- A new strategic alliance with Bits of Stock will allow financial institutions to offer fractional stock rewards via the Banno Digital Platform, helping banks better attract and retain customers (Client Announcements).
- MeridianLink and Jack Henry expanded their partnership to accelerate innovation and deliver improved digital lending and account opening experiences for community banks and credit unions (Client Announcements).
Valuation Changes
- Consensus Analyst Price Target has decreased slightly, moving from $185.09 to $183.18 per share.
- Discount Rate has decreased marginally from 7.42% to 7.36%.
- Revenue Growth projection has edged down, shifting from 6.30% to 6.15%.
- Net Profit Margin estimate has fallen slightly, from 19.89% to 19.58%.
- Future P/E ratio has risen modestly, moving from 29.11x to 29.33x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.