Project Delays and M&A Dynamics: Contradictory Insights from 2025 Q4 Earnings Call

Revenue Growth and Margin Expansion:
- Jack Henry & Associates reported a 7.5% non-GAAP revenue increase for Q4 and a record $2.3 billion in non-GAAP revenue for the fiscal year.
- The company expanded its non-GAAP operating margin by 146 basis points in Q4 and 70 basis points for the full year.
- Revenue growth was driven by strong sales, particularly in the core segment, while margin expansion was attributed to cost management and leveraging existing workforce efficiency.

Core Segment Performance:
- The core non-GAAP segment revenue increased 7% in Q4, with operating margin expanding by 274 basis points.
- Full-year non-GAAP core segment revenue growth was 6%, with a margin increase of 113 basis points.
- Growth in the core segment was attributed to the benefits of private cloud trends and disciplined cost management.

Payment Segment and Diverse Solutions:
- The Payments segment's non-GAAP revenue increased 9% in Q4 and 8% for the full year.
- The segment benefited from strong growth in card-related services and faster payments, supported by operational efficiencies and disciplined cost management.
- The integration of new solutions like Banno Digital and Jack Henry Rapid Transfers contributed to the expansion in this segment.

Complementary Segment and Product Demand:
- Non-GAAP revenue in the Complementary segment grew 11% in Q4, with a margin expansion of 155 basis points.
- Full-year growth in this segment was 9%, with a margin increase of 117 basis points.
- Demand for digital solutions, beneficial product mix, and growth from both core and non-core financial institutions drove the segment's performance.
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