JKHY · 10-Q · 2026Q3 · Full report

Segment Revenue Performance

JACK HENRY & ASSOCIATES INC · 2026-11-06 · Importance 36 · Surprise 40

Core revenue increased 7.1% to $203.411 million, or 4.9% excluding deconversion revenue, with organic hosting growth and expanding processing volumes; Core cost of revenue rose 6.4% and its share of revenue decreased 1%.,Payments revenue rose 9.2% to $252.111 million, or 8.3% excluding deconversion and acquisition revenue, driven by card fees and faster payments volumes; Payments cost of revenue increased 5.6% and its share of revenue decreased 1%.,Complementary revenue increased 10.4% to $220.176 million, or 8.4% excluding deconversion revenue, driven by hosting and digital and transaction growth; cost of revenue rose 2.4% and its share of revenue decreased 3%.,Corporate Services revenue increased 6.2% to $25.849 million, or 5.2% excluding deconversion revenue, while cost of revenue rose 17.0% to $99.748 million, reflecting higher cloud consumption including AI, personnel costs, infrastructure licenses and fees, hardware costs, and intangible amortization.

Key facts

• JACK HENRY & ASSOCIATES INC transferred a product from the Core segment to the Complementary segment during the three months ended September 30, 2026, reclassifying $5,292 of prior-year revenue and $746 of prior-year cost of revenue. source
• JACK HENRY & ASSOCIATES INC reclassified $757 of prior-year cost of revenue from Core to Corporate Services during the three months ended September 30, 2026. source
• JACK HENRY & ASSOCIATES INC's Core segment revenue, excluding deconversion revenue, increased 4.9% in the first quarter of fiscal 2027; growth was primarily driven by organic Core revenue growth including hosting as clients migrated to cloud and processing volumes expanded. source
• JACK HENRY & ASSOCIATES INC's Payments segment revenue, excluding specified deconversion and acquired-company revenue, increased 8.3% in the first quarter of fiscal 2027; the increase was primarily due to card fees and expanding faster-payments transaction volumes. source
• JACK HENRY & ASSOCIATES INC's Complementary segment revenue, excluding deconversion revenue, increased 8.4% in the first quarter of fiscal 2027; growth was attributed to hosting growth as clients migrated to cloud and to digital and transaction revenues from more active users and additional products. source
• JACK HENRY & ASSOCIATES INC's Corporate Services revenue excluding deconversion revenue increased 5.2% in the first quarter of fiscal 2027, primarily due to hardware, on-premise support, digital and transaction, and hosting revenue growth, partly offset by Connect conference timing. source