
JKHY Stock Forecast & Price Target
JKHY Analyst Ratings
Bulls say
Jack Henry & Associates has demonstrated strong financial performance, with F4Q25 GAAP operating margins reaching 25.3%, driven by an increase in deconversion fees and improved expense control, which suggests effective management and profitability growth. The company is poised for enhanced free cash flow conversion of approximately 85%-100%, supported by favorable conditions in the banking sector that are expected to spur technology spending and assist in increasing market share against competitors. Furthermore, the anticipated rise in deconversion fees for FY26 from $20.0M to $28.0M highlights the company's robust demand for its core and complementary services, bolstering its long-term growth trajectory.
Bears say
Jack Henry & Associates faces significant headwinds that may negatively impact its stock performance, including an anticipated $8 million year-over-year decline in deconversion fee revenue, contributing a 16-cent reduction to the EPS outlook. Additionally, competitive pressures, potential margin headwinds from migrating payment platforms, and ongoing consolidation within the banking industry present considerable risks to organic growth and overall financial stability. The current high valuation, coupled with uncertainties related to bank technology spending and the outcomes of financial institution mergers and acquisitions, further complicates the company's outlook.
This aggregate rating is based on analysts' research of Jack Henry & Associates and is not a guaranteed prediction by Public.com or investment advice.
JKHY Analyst Forecast & Price Prediction
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