(Reuters) -Jack Henry & Associates reported about a 21% jump in first-quarter profit on Tuesday, helped by resilient demand for its banking technology services.
The Monett, Missouri-based company, which competes against Fiserv and FIS, provides technology and payment processing services to financial institutions, mainly community banks and credit unions.
Small- and mid-sized financial institutions tend to rely more heavily on banking technology providers like Jack Henry, unlike major players such as JPMorgan Chase, which have invested billions in developing proprietary tech stacks.
Jack Henry’s revenue jumped 7.3% to $644.7 million during the first quarter. Revenue from services and support increased 5.7%, while processing rose 9.7%.
Net income was at $144 million, or $1.97 per share, during the three months ended September 30, compared with $119.2 million, or $1.63 per share, a year earlier.
Bank tech stocks have weakened this year amid investor concerns over increased financial institution consolidation and competitive threats, analysts have said.
They see the selloff in bank tech stocks as an opportunity for investors, given their business models benefit from a large base of recurring revenue.
Jack Henry’s shares were up more than 4% after the bell. They have slipped 13% so far this year.
The company expects fiscal 2026 revenue to be between $2.49 billion and $2.51 billion, compared with its prior forecast of $2.48 billion to $2.50 billion. It expects annual profit per share in the range of $6.38 and $6.49, compared with $6.32 to $6.44 projected earlier.
(Reporting by Pritam Biswas and Arasu Kannagi Basil in Bengaluru; Editing by Shilpi Majumdar)
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