Jack Henry Q4 Earnings Exceed Expectations, Cloud Revenue Grows Double Digits

Jack Henry & Associates reported Q4 FY2025 results exceeding expectations, with GAAP earnings per share of $1.75, up 26.4% YoY, and revenue of $615.4 million, up 9.9% YoY. Cloud revenue grew double-digits, and payment processing revenue increased 9.4%. Full-year free cash flow rose 21.9% to $410.3 million. The company's strong performance was driven by firm demand for cloud and payments solutions.

Jack Henry & Associates (NASDAQ:JKHY) reported robust Q4 FY2025 results, surpassing analyst expectations. The company's GAAP earnings per share (EPS) reached $1.75, up 26.4% year-over-year (YoY), while revenue hit $615.4 million, up 9.9% YoY. This performance was driven by strong demand for cloud and payment processing solutions [3].

Cloud revenue grew at a double-digit rate, and payment processing revenue increased by 9.4%. Full-year free cash flow (non-GAAP) rose 21.9% to $410.3 million, reflecting the company's strong operational performance [3].

For the fiscal year ended June 30, 2025, Jack Henry & Associates achieved 7.2% revenue growth to $2.38 billion and 16.2% operating income growth. GAAP EPS for the full year was $6.24, compared to $5.23 in FY2024. The company's financial position remained strong with cash and equivalents of $102.0 million and zero debt outstanding [1].

Looking ahead, Jack Henry & Associates provided FY2026 guidance projecting revenue between $2.475-$2.504 billion and EPS of $6.32-$6.44. The company expects moderate revenue growth, with GAAP revenue guidance set at $2.48–$2.50 billion, representing 4.2–5.4% growth from the prior year. Projected GAAP EPS are $6.32–$6.44, reflecting slower growth of 1–3%. Margin expansion is expected to pause, with GAAP operating margin expected at 24.0–24.2% [2].

Investors may want to watch trends in new core wins, progress in cloud and digital channels, and the impact of contract renewals on future growth. Jack Henry & Associates paid $164.6 million in dividends and deployed $35.1 million for share repurchases during the year [3].

References:
[1] https://www.stocktitan.net/news/JKHY/jack-henry-associates-inc-reports-fourth-quarter-and-full-year-mgiy36tb4m0x.html
[2] https://seekingalpha.com/news/4487211-jack-henry-associates-gaap-eps-of-175-beats-by-017-revenue-of-61537m-beats-by-1006m
[3] https://www.nasdaq.com/articles/jack-henry-posts-26-profit-jump-q4