JKHY

Jack Henry is a high-quality fintech franchise providing core data-processing, payments and complementary software to roughly 7,400 community and regional banks and credit unions. The business is exceptionally durable: cloud contracts run about six years at inception, client service drives high retention, and the recurring services/support and processing revenue streams compound steadily. FY2025 revenue grew 7.2% to $2.38B (6.5% ex-deconversion), continuing a consistent climb from $1.76B in FY2021, driven by cloud, card-fraud, digital and payment-processing volume growth.

Profitability is improving as the model scales. Operating income rose 16.2% to $569M (23.9% margin) and net income grew 19.4% to $456M, lifting diluted EPS 19.3% to $6.24 — earnings growing faster than revenue as the company contains costs and expands margins. Returns are strong (21.4% ROE) and the balance sheet is pristine: zero long-term and current debt, liabilities/equity of just 0.43x, and rising cash. That financial strength funds a steady, growing dividend ($165M, +5.6%) and buybacks while leaving ample room for tuck-in M&A.