Jack Henry Sets Fiscal 2027 Deconversion Estimate at $30 Million

The Tip Desk · October 30, 2026 · 3 min read

First-quarter deconversion revenue of $17.9 million sat beside a $30.0 million fiscal 2027 estimate after a $42.8 million fiscal 2026 total.

Jack Henry & Associates, Inc. (JKHY) reported deconversion revenue of $17.9 million for the fiscal first quarter ended September 30, 2026, and said the fiscal 2027 deconversion revenue estimate is $30.0 million.

The quarter’s figure compared with $9.3 million of deconversion revenue in the fiscal fourth quarter ended June 30, 2026. Including that fourth-quarter result, deconversion revenue for fiscal year 2026 totaled $42.8 million. The new $30.0 million estimate sits below that fiscal 2026 total.

The financial-technology company said the majority of deconversion revenue is generated when a client agrees to be acquired by another financial institution, ending the client’s contract with Jack Henry. Recognition of that revenue is driven by factors outside the company’s control, and Jack Henry excludes it from non-GAAP revenue in its quarterly and annual earnings releases.

The company said more information about how guidance is developed for deconversion revenue estimates is available in its Current Report on Form 8-K filed with the Securities and Exchange Commission on Aug. 3, 2023.

Jack Henry, which describes itself as a well-rounded financial technology company that strengthens connections between financial institutions and the people and businesses they serve, said it empowers more than 7,200 clients. In the August 11 deconversion release, it had said it empowered approximately 7,400 clients.

A separate August 18 release covering fiscal fourth-quarter and full-year results for the period ended June 30, 2026, reported GAAP revenue up 4.7% and GAAP operating income down 12.2% for the fiscal three months ended June 30, 2026, versus the prior fiscal year quarter. Non-GAAP adjusted revenue increased 6.6% and non-GAAP adjusted operating income decreased 3.1% in that same quarter. GAAP EPS was $1.57 a share, compared with $1.75 a share a year earlier. Stock repurchases in the fiscal three months ended June 30, 2026, were $164 million at an average price of $140 a share.

For the fiscal year ended June 30, 2026, GAAP revenue increased 7.1% and GAAP operating income increased 11.7%. Non-GAAP adjusted revenue increased 7.3% and non-GAAP adjusted operating income increased 11.6%. GAAP EPS was $6.98 a share, compared with $6.24 a share in the prior fiscal year. Cash and cash equivalents were $12.1 million at June 30, 2026, and $102.0 million at June 30, 2025. Debt outstanding for credit facilities was $40 million at June 30, 2026, and $0 at June 30, 2025. Stock repurchases for the fiscal year ended June 30, 2026, were $448 million at an average price of $152 a share.

President and CEO Greg Adelson said the company delivered a record 58 competitive core wins for the year, including 14 institutions with more than $1 billion in assets, and that both fourth-quarter and full-year non-GAAP revenue reached new highs. He said technology spending remains strong, which is reflected in the sales pipeline as the company continues to provide innovative solutions and expand the use of artificial intelligence.

Full-year fiscal 2027 guidance, which assumes no acquisitions or dispositions, called for GAAP revenue of $2,684 million to $2,709 million, GAAP operating margin of 24.5% to 24.7%, and GAAP EPS of $7.33 to $7.38. Non-GAAP adjusted revenue was guided at $2,659 million to $2,684 million, with adjusted operating margin of 24.1% to 24.3%.

The October 29 deconversion update did not restate that operating guidance. It restated only the deconversion revenue estimate, now $30.0 million for fiscal 2027 after the $17.9 million first-quarter result.