JKHY · 10-K · 2026A · Full report

Operating Expense Trends

JACK HENRY & ASSOCIATES INC · 2026-08-28 · Importance 37 · Surprise 32

Operating expenses increased 5.7%, or $102.7 million, in fiscal 2026; excluding deconversion, acquisition, asset-gain, and contract-change items, the increase was 6.1%, or $108.3 million. The increase primarily reflected higher personnel costs, including compensation increases, direct costs generally commensurate with revenue growth, and higher amortization of capitalized software. Research and development expense increased 8.4% to $176.4 million, with the adjusted increase at 7.3%, primarily because of personnel costs and continued investment in strategic products. Selling, general, and administrative expense increased 5.7% to $299.2 million; excluding specified items, it rose 7.2%, mainly due to personnel costs, higher medical costs, and headcount-related compensation.

Key facts

• Jack Henry & Associates' operating expenses increased 5.7%, or $102,733, in fiscal 2026 compared to fiscal 2025. source
• After adjusting for deconversion costs, acquisition costs, an asset-sale gain, and costs related to a contract change, Jack Henry & Associates' operating expenses increased 6.1%, or $108,291. source
• Jack Henry & Associates' research and development expenses increased 8.4% in fiscal 2026 compared to fiscal 2025. source
• After adjusting for current-year acquisition costs, Jack Henry & Associates' research and development expenses increased 7.3%. source
• Jack Henry & Associates' selling, general, and administrative expenses increased 5.7% in fiscal 2026 compared to fiscal 2025. source
• After adjusting for deconversion costs, an asset gain, and acquisition costs, Jack Henry & Associates' selling, general, and administrative expenses increased 7.2%. source
• Jack Henry & Associates' operating expense increase was primarily due to higher personnel costs, direct costs generally commensurate with revenue growth, and higher amortization of capitalized software. source
• Jack Henry & Associates' research and development expense remained consistent as a percentage of total revenue in fiscal 2026 compared to fiscal 2025. source