Jack Henry generated $762.0 million of operating cash over the twelve months ended June 30, enough to cover its $67.1 million of capital spending more than eleven times over. Revenue rose 7.1% to $2.5 billion, operating income grew faster at 11.7%, and the operating margin reached 25.0%.
That combines more customers and transaction volume with a little operating leverage. The less familiar part is where the cash surge came from. Operating cash flow grew 18.8%, versus 10.3% growth in net income, but Jack Henry said the primary driver was a change in deferred income taxes, a non-cash accounting item.
The company described the revenue mix this way:
"This increase was mainly driven by non-acquisition-related growth in data processing and hosting within cloud revenue as new clients were added and volumes expanded, card processing revenue primarily from monthly service and risk management fees, Jack Henry digital and transaction revenue as active monthly users and volumes increased, and faster payments and payment processing revenues from expanding volumes and new client revenue."
10-K 2026-08-28; revenue
The underlying receipts are not abstract. Cloud activity expanded as new clients arrived, card revenue benefited from monthly service and risk-management fees, and digital revenue followed active users and volumes. Payments revenue rose to $936.0 million from $873.5 million, while the smaller business lines also grew.
Expenses rose too. Research and development increased 8.4% to $176.4 million, and the company attributed higher costs primarily to personnel, direct costs tied to revenue growth, and software amortization. Yet operating income still outpaced sales, leaving a one-percentage-point improvement in operating margin.
The cash-flow note supplies the accounting wrinkle:
"The following table summarizes net cash from operating activities in the consolidated statements of cash flows: Year Ended June 30, 2026 2025 Net income $ 502,776 $ 455,748 Non-cash expenses 374,296 231,613 Change in receivables (29,268) 15,056 Change in deferred revenues 9,099 (25,559) Change in other assets and liabilities (94,943) (35,354) Net cash provided by operating activities $ 761,960 $ 641,504 Cash provided by operating activities for fiscal 2026 increased 18.8% compared to fiscal 2025, primarily due to the change in deferred income taxes fiscal year over year."
10-K 2026-08-28; cash liquidity
In plain English, the cash number improved, but the company did not describe the entire improvement as recurring operating momentum. Accounts receivable also rose 9.8% to $349.1 million, faster than revenue, while capex jumped 25.8%. Those are reported movements, not explanations, but they make cash conversion worth separating from profit growth.
The result is a business showing two credible signals at once. Cash conversion improved to 1.52 times net income, and diluted shares fell 1.4% to 72.0 million. At the same time, part of the cash-flow expansion came from a non-cash tax change, and more cash went into capital spending and receivables.
Shares closed flat at $169.75 on August 28. The stock carries a 27.2x P/E on the latest annual figures, so the distinction between operating improvement and cash flow partly reflecting a non-cash tax change is relevant for readers comparing earnings power with cash generation.
Source: Jack Henry & Associates’ 2026 Form 10-K for the twelve months ended June 30, 2026.