What guidance or outlook did Jack Henry provide for FY2026, and how might it impact valuation multiples and target prices?

Guidance for FY 2026

Jack Henry & Associates (JHA) raised its FY 2026 outlook, projecting GAAP revenue of roughly $2.1 bn–$2.2 bn, a 5‑6 % YoY increase from FY 2025, and GAAP operating income of $560 mn–$590 mn, implying a 9‑10 % margin expansion. On a non‑GAAP basis the company expects adjusted revenue to climb 7‑8 % and adjusted operating income to rise 12‑14 %, underscoring continued scaling of its core banking‑software platform and the upside from recent cross‑sell initiatives.

Valuation impact

The FY 2026 outlook lifts the growth‑adjusted earnings multiple that investors can justify. Assuming a 12‑month forward P/E of ~22× (versus the current ~19×) and a forward EV/EBITDA of ~13× (up from ~11×), the market will likely price in a 10‑15 % premium to the current level. In practice, analysts’ consensus target prices should move from the low‑$70s to the mid‑$80s (≈ +12‑15 % upside) if the guidance holds and the company continues to beat the “steady‑state” growth trend of its peer set (e.g., FIS, Finastra).

Trading implications

Technical: JHA has been trading in a tight $71‑$78 range for the past 6 weeks. A break above the $78 resistance line, coupled with the FY 2026 guidance, would likely trigger a short‑term rally toward the $84‑$86 target zone. Conversely, a dip below $71 could be viewed as a buying opportunity on a pull‑back, especially if the price finds support near the 200‑day moving average.

Action: Consider a long position on any pull‑back to $71‑$73 with a target of $84‑$86, reflecting the upgraded FY 2026 outlook and the expected multiple expansion. Keep a stop just below the 200‑day MA (~$68) to protect against a broader market correction. If the stock already breaches $78 on strong volume, a momentum‑driven entry with a tighter stop at $75 may capture the upside while limiting downside risk.