Update shared on 29 Nov 2025
Fair value Increased 1.15%Analysts have modestly raised their fair value estimate for Jack Henry & Associates from $179.17 to $181.23. This change is attributed to ongoing share gain opportunities and potential incremental revenue growth highlighted in recent research updates.
Analyst Commentary
Recent analyst updates highlight a mix of optimistic growth catalysts and areas of caution regarding Jack Henry & Associates’ outlook. The following subsections summarize the latest perspectives from both bullish and bearish analysts based on recent research notes.
Bullish Takeaways
- Bullish analysts see significant upside potential, with one setting a price target that implies nearly 20% share appreciation.
- Ongoing industry consolidation among competitors is expected to create a meaningful share gain opportunity over the medium term.
- Jack Henry is projected to achieve as many as 130 new core contract wins in three years. This could yield up to $80 million in additional revenue and a notable earnings per share boost.
- Potential exists for Jack Henry to outperform near-term estimates, driven by positive revenue momentum and incremental contract wins.
Bearish Takeaways
- Bearish analysts cite the recent rotation from payment and IT services stocks toward AI-centric companies. This is adding valuation pressure to the sector as a whole.
- Lowered price targets and neutral ratings reflect ongoing execution challenges and general investor caution within the payments sector.
- The competitive landscape and recent sector-wide struggles have made it more difficult for Jack Henry to distinguish itself. Some analysts view shares as fairly valued at current levels.
- Market volatility and subpar performance across several industry peers present ongoing risks to near-term performance and sentiment.
What's in the News
- Traditional Bank has selected Jack Henry to upgrade its technology and transition to a hosted core processing platform. This move is intended to support future growth and improve operational efficiency. (Client Announcements)
- QCR Holdings, Inc. is consolidating all four subsidiary banks onto Jack Henry’s platform. The company aims to modernize its technology infrastructure and integrate data-driven solutions to enhance scalability and efficiency. (Client Announcements)
- Jack Henry & Associates, Inc. provided fiscal 2026 guidance, projecting GAAP revenue between $2,491 million and $2,514 million and expected GAAP EPS between $6.38 and $6.49. (Corporate Guidance - New/Confirmed)
- The company has completed a share repurchase of 389,392 shares for $62.05 million during Q3 2025. This contributes to a total buyback of 38.34% of shares since 2002. (Buyback Tranche Update)
- Mercantile Bank has selected Jack Henry to advance operations, automate processes, and improve integration in support of long-term growth. (Client Announcements)
Valuation Changes
- Fair Value Estimate has risen slightly, from $179.17 to $181.23 per share.
- Discount Rate has edged up marginally, moving from 7.32% to 7.33%.
- Revenue Growth Projection remains virtually unchanged, holding steady at approximately 6.23%.
- Net Profit Margin is unchanged, holding at about 19.28%.
- Future P/E Ratio has increased modestly, from 27.72x to 28.05x.
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.