Earnings Beat: Jack Henry & Associates, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Investors in Jack Henry & Associates, Inc. (NASDAQ:JKHY) had a good week, as its shares rose 3.2% to close at US$179 following the release of its quarterly results. It looks like a credible result overall - although revenues of US$585m were in line with what the analysts predicted, Jack Henry & Associates surprised by delivering a statutory profit of US$1.52 per share, a notable 11% above expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the 18 analysts covering Jack Henry & Associates are now predicting revenues of US$2.53b in 2026. If met, this would reflect a solid 8.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 8.9% to US$6.41. Before this earnings report, the analysts had been forecasting revenues of US$2.54b and earnings per share (EPS) of US$6.34 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Jack Henry & Associates

The analysts reconfirmed their price target of US$189, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Jack Henry & Associates analyst has a price target of US$212 per share, while the most pessimistic values it at US$155. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Jack Henry & Associates'historical trends, as the 7.1% annualised revenue growth to the end of 2026 is roughly in line with the 7.0% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.3% per year. So it's pretty clear that Jack Henry & Associates is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Jack Henry & Associates going out to 2027, and you can see them free on our platform here..

You can also view our analysis of Jack Henry & Associates' balance sheet, and whether we think Jack Henry & Associates is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.