Jack Henry & Associates, Q1 2027 Earnings Call Transcript

Jack Henry opened fiscal 2027 with record first-quarter results: non-GAAP revenue rose 7% and operating margin expanded 102 basis points. Strong core wins, a growing sales pipeline and rising demand for digital, payments and cybersecurity solutions support management’s confidence in 58–65 core wins this year. The company raised full-year non-GAAP revenue growth guidance to 6.6%–7.4%, while maintaining its forecast for 20–40 basis points of margin expansion and lifting its GAAP EPS outlook to $7.47–$7.51.

Cloud services, card processing and faster payments contributed to growth, while AI products and consulting, the cloud-native platform and small-business payment offerings are key areas of development. Management expects lower non-GAAP revenue growth in the second half and cited pressure on margins from normalized medical costs and planned cybersecurity, AI and infrastructure spending. It remains cautiously optimistic about raising its margin outlook as the year progresses, with stronger margin expansion expected beyond fiscal 2027.