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- **Revenue Growth**: Q1 non-GAAP revenue +8.7% to $636M, exceeding 7-7.5% guidance. Full-year GAAP EPS guidance raised to $6.38-6.49 (+2-4%).
- **Cloud Dominance**: 77% of core clients on private cloud, generating 2x more revenue. 7 new cloud migration contracts signed.
- **Strategic Wins**: 4 competitive core wins, 148 Financial Crimes Defender installations, and 113 faster payment modules.
- **Innovation Acceleration**: Tap2Local rolled out to 40 clients, Rapid Transfers live with 48 clients. Stablecoin PoC completed in 2 weeks.
- **Margin Expansion**: Non-GAAP margin +227 bps to 27.2%. Full-year non-GAAP margin expansion 30-50 bps.

**【CEO Summary Section】**
- **Record Q1 Financial Results**: Non-GAAP revenue of $636 million (+8.7% YoY), exceeding the 7-7.5% guidance range. Non-GAAP operating margin expanded 227 bps to 27.2%.
- **Cloud Migration Momentum**: 7 private cloud migration contracts signed, including a $11B credit union and $8B bank. 77% of core clients now on Jack Henry private cloud, generating 2x more revenue than on-premise.
- **Sales Performance**: 4 competitive core wins (including a $1B+ FI) and 56% renewals in Q1, up from 35% new sales in Q1 FY25. 148 Financial Crimes Defender installations and 113 faster payment modules completed.
- **Strategic Acquisitions**: Victor Technologies acquisition to enhance payments-as-a-service and stablecoin capabilities. New Jack Henry platform supports 9 decimal places for stablecoin transactions.
- **Client Engagement**: Record 2,651 attendees at Jack Henry Connect, with 91 prospects (20+ converted to core wins last year). 48 CEOs attended the CEO Forum, signaling confidence in tech spending.

**【CFO Financial Commentary】**
- **Revenue Growth**: GAAP revenue +7%, non-GAAP +9% (excluding Connect timing shift). Recurring revenue占91% of total. Cloud revenue +7%, processing revenue +10%.
- **Cost Management**: Non-GAAP R&D down 1%, SG&A up 14% (due to Connect costs). Non-GAAP margin expanded 227 bps to 27.2%, driven by leverage and AI efficiency.
- **Cash Flow & Guidance**: Q1 free cash flow $69M. Updated FY26 GAAP EPS guidance: $6.38-6.49 (+2-4%). Full-year non-GAAP margin expansion 30-50 bps. Victor acquisition excluded from non-GAAP metrics.
- **Tax & Capital Allocation**: GAAP tax rate 23.75%. $100M share buybacks YTD, $42M dividends, and $4M in Victor-related costs.

**【Q&A Highlights】**
- **Margin Sustainability**: R&D and SG&A disciplined, with AI-driven cost savings. Full-year margin expansion 30-50 bps.
- **Competitive Environment**: Core consolidation at peers may create opportunities, but Jack Henry remains focused on innovation (e.g., Tap2Local, Rapid Transfers).
- **Sales Momentum**: 4 Q1 core wins, on track for 50-55 FY26. 56% renewals vs. 65% last year, reflecting new sales focus.
- **Deconversion Trends**: Q1 deconversion revenue $9M (+$5M YoY). FY26 deconversion guidance $20M (conservative methodology).
- **New Product Performance**: Tap2Local rolled out to 40 clients, Rapid Transfers live with 48 clients. Stablecoin PoC completed in 2 weeks.
- **M&A Impact**: 35-45 cloud migrations/year expected, with larger clients driving AUM growth (e.g., $69B vs. $43B YoY).

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