Jack Henry & Associates JKHY reported third-quarter fiscal 2025 GAAP earnings of $1.52 per share, beating the Zacks Consensus Estimate by 17.83%. The figure jumped 27.7% year over year.

Jack Henry & Associates’ revenues of $585.1 million missed the Zacks Consensus Estimate by 0.3%. The figure increased 8.6% year over year.

After adjusting for deconversion revenues of $9.6 million, non-GAAP revenues were $575.4 million, up 7% year over year.

Following the release, JKHY shares were almost unchanged in the pre-market trading. However, shares of Jack Henry & Associates have declined 1.8% in the year-to-date period, outperforming the Zacks Computers - IT Services industry’s fall of 9.3%.

Jack Henry & Associates, Inc. Price, Consensus and EPS SurpriseJack Henry & Associates, Inc. Price, Consensus and EPS Surprise

Jack Henry & Associates, Inc. price-consensus-eps-surprise-chart | Jack Henry & Associates, Inc. Quote

JKHY’s Q3 Top-Line Details

Revenues from Services and Support (56.5% of total revenues) were $330.8 million, up 8.5% year over year, primarily driven by growth in data processing and hosting revenues. The figure missed the consensus mark of $332 million.

Third-quarter fiscal 2025 revenues from Processing (43.5% of total revenues) were $254.3 million, up 8.9% year over year, primarily driven by growth in card, transaction and digital, and payment processing revenues. The figure marginally surpassed the consensus mark of $253 million.

Revenues from Core segments (30.9% of total revenues) in the third quarter of fiscal 2025 were $180.7 million, up 8.4% year over year. Revenues from Payments (37.2% of total revenues) were $217.4 million, which rose 7.7% year over year. Revenues from Complementary (28.6% of total revenues) were $167.4 million, up 12.2% year over year.

Revenues from Corporate and Other (3.3% of total revenues) were $19.5 million, down 6.2% year over year.

JKHY’s fiscal third-quarter adjusted EBITDA was $182.9 million, up 12.8% year over year. The adjusted EBITDA margin expanded 160 basis points (bps) year over year to 31.8%.

Adjusted operating income increased 17.6% year over year to $131.9 million. The adjusted operating margin increased 210 bps year over year to 22.9%.

Jack Henry & Associates’ Balance Sheet & Cash Flow

As of March 31, 2025, JKHY’s cash and cash equivalents were $39.9 million compared with $25.7 million as of Dec. 31, 2024.

Current and long-term debt was $170 million as of March 31, 2025, higher than $150 million as of Dec. 31, 2024.

JKHY Lowers 2025 Guidance

For fiscal 2025, Jack Henry & Associates lowered its GAAP revenue guidance to $2.37-$2.35 billion, down from the prior quarter's view of $2.39-$2.37 billion.

JKHY expects non-GAAP revenues of $2.34-$2.33 billion for fiscal 2025, revised down from the previous guidance of $2.38-$2.35 billion.

The Zacks Consensus Estimate for revenues is pegged at $2.38 billion, suggesting a year-over-year rise of 7.23%.

The GAAP operating margin is anticipated between 23.7% and 23.5%. The adjusted operating margin is expected between 23.1% and 23%.

Management expects GAAP earnings 2025 of $6.09-$6.00 per share for fiscal, up from the previously stated $5.87-$5.79.

Non-GAAP earnings for fiscal 2025 are projected to be $5.87-$5.83 per share, raised from the previously mentioned $5.74-$5.65.

The Zacks Consensus Estimate for earnings is pegged at $5.70 per share, indicating a year-over-year increase of 8.99%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Story Continues

Zacks Rank & Stocks to Consider

Currently, JKHY carries a Zacks Rank #4 (Sell).

Magnachip Semiconductor MX, Sprout Social SPT and TaskUs TASK are some better-ranked stocks in the broader Zacks Computer and Technology sector.

Magnachip Semiconductor sports a Zacks Rank #1 (Strong Buy) at present, and Sprout Social and TaskUs carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Magnachip Semiconductor is scheduled to report first-quarter 2025 results on May 12, while Sprout Social and TaskUs are set to release first-quarter 2025 results on May 8 and May 12, respectively.

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