JKHY · 10-Q · 2026Q3 · Full report

Operating Income and Margins

JACK HENRY & ASSOCIATES INC · 2026-11-06 · Importance 42 · Surprise 40 · In source text

Operating income increased 12.5%, or $23.006 million, in the first quarter of fiscal 2027 compared with the prior-year quarter.,After adjusting for deconversion operating income and expenses and the prior-year gain on certain assets, operating income increased 11.2%, primarily from organic revenue growth.,Operating expenses increased 7.3%, or $33.803 million; excluding specified deconversion, acquisition, and prior-year asset-gain effects, the increase was 5.7%.,Cost of revenue increased 7.9% to $376.046 million, with higher direct and personnel costs, cloud consumption including AI and security costs, intangible amortization, and infrastructure licenses and fees partly offset by increased labor-cost deferral; cost of revenue remained consistent as a percentage of revenue.

Key facts

• JACK HENRY & ASSOCIATES INC's first-quarter fiscal 2027 operating income increased 12.5%, or $23,006; after specified adjustments, the increase was 11.2%. source
• JACK HENRY & ASSOCIATES INC's first-quarter fiscal 2027 cost of revenue increased 7.9%; after specified adjustments, the increase was 7.3%. source
• JACK HENRY & ASSOCIATES INC's Core cost of revenue as a percentage of Core revenue decreased 1% in the first quarter of fiscal 2027 compared with the year-ago quarter. source
• JACK HENRY & ASSOCIATES INC's Payments cost of revenue as a percentage of Payments revenue decreased 1% in the first quarter of fiscal 2027 compared with the year-ago quarter. source
• JACK HENRY & ASSOCIATES INC's Complementary cost of revenue as a percentage of Complementary revenue decreased 3% in the first quarter of fiscal 2027 compared with the year-ago quarter. source
• JACK HENRY & ASSOCIATES INC attributed higher operating expenses to higher direct and personnel costs, partly related to trailing-twelve-month headcount growth; lower Connect conference-timing expenses partly offset the increase. source
• JACK HENRY & ASSOCIATES INC attributed first-quarter fiscal 2027 operating income growth primarily to organic revenue growth, partly offset by higher operating expenses. source
• JACK HENRY & ASSOCIATES INC attributed first-quarter fiscal 2027 cost-of-revenue growth to higher direct and personnel costs, cloud consumption including AI and security costs, intangible amortization, and licenses and fees; labor cost deferral partly offset the increase. source

Impact estimates