Jack Henry & Associates, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Investors in Jack Henry & Associates, Inc. (NASDAQ:JKHY) had a good week, as its shares rose 8.0% to close at US$161 following the release of its quarterly results. It looks like a credible result overall - although revenues of US$645m were in line with what the analysts predicted, Jack Henry & Associates surprised by delivering a statutory profit of US$1.97 per share, a notable 15% 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Jack Henry & Associates from 15 analysts is for revenues of US$2.50b in 2026. If met, it would imply a reasonable 3.4% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to dip 2.1% to US$6.48 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$2.49b and earnings per share (EPS) of US$6.41 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Jack Henry & Associates

The analysts reconfirmed their price target of US$179, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Jack Henry & Associates at US$208 per share, while the most bearish prices it at US$164. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Jack Henry & Associates' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.6% growth on an annualised basis. This is compared to a historical growth rate of 7.1% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.2% per year. Factoring in the forecast slowdown in growth, it seems obvious that Jack Henry & Associates is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Jack Henry & Associates' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$179, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Jack Henry & Associates analysts - going out to 2028, and you can see them free on our platform here.

You can also see our analysis of Jack Henry & Associates' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.