JACK HENRY & ASSOCIATES INC
For the period ended Sep 30, 2026. Filed Nov 6, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 6, 2026
JKHY$173.23-3.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-07.
0000779152-26-000025
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0000779152-26-000098
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 72 previous paragraphs and 55 current paragraphs.
17 unchanged; 35 reworded; 3 added; 19 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
Payments lines of revenue, and higher Payments personnel costs partly related to headcount growth in the trailing twelve months, partially offset by the increase in Payments labor cost deferral. Payments cost of revenue as a percentage of Payments revenue decreased 1% for the first quarter of fiscal 2027 compared to the same quarter in fiscal 2026.
Current report
We believe that cash generated from operating activities, together with existing cash balances and amounts available under financing activities, will be sufficient to meet our anticipated working capital, capital expenditure, dividend, debt service, and other cash requirements for at least the next 12 months and over the longer term.
Current report
Contractual obligations are discussed in our Annual Report on Form 10-K for the fiscal year ended June 30, 2026. There have been no material contractual obligations added for the fiscal three months ended September 30, 2026.
Removed paragraphs (19)
Previous report
For the fiscal nine months ended March 31, 2026, total revenue increased 8.0%, or $140,400, compared to the same period in fiscal 2025. Total revenue less deconversion revenue of $33,504 and revenue for the acquired company of $3,595 for the current fiscal year period and revenue from a contractual change of $14,672 and deconversion revenue of $13,410 for the prior fiscal year period results in an increase of 7.6%, period over period. This increase was primarily driven by organic growth in our revenue lines including data processing and hosting within private and public cloud, card, Jack Henry digital and transaction, and faster payments.
Previous report
Operating expenses increased 4.1%, or $55,157, for the fiscal nine months ended March 31, 2026, compared to the same period in fiscal 2025. Total operating expenses less deconversion operating expenses of $8,167, the impact of the gain on assets, net, of $6,829, and operating expenses for the acquired company of $5,413 for the current fiscal year period and less operating expenses related to a contractual change of $12,494 and deconversion operating expenses of $3,686 for the prior fiscal year period results in an increase of 4.9%, period over period. This increase was primarily driven by higher personnel costs and higher direct costs, period over period.
Previous report
Operating income increased 20.6%, or $85,243, for the fiscal nine months ended March 31, 2026, compared to the same period in fiscal 2025. Total operating income less deconversion operating income of $25,337, the impact of the gain on assets, net, of $6,829, and an operating loss for the acquired company of $1,817 for the current fiscal year period and deconversion operating income of $9,724 and operating income related to a contractual change of $2,178 for the prior fiscal year period results in an increase of 16.7%, period over period. This increase was primarily driven by organic revenue growth, partially offset by increased operating expenses detailed above tempered by our disciplined approach to controlling costs.
Previous report
The provision for income taxes increased 24.1%, or $23,560, for the fiscal nine months ended March 31, 2026, compared to the same period in fiscal 2025. This increase was primarily driven by the increase in income before income taxes. The effective tax rate for the current fiscal year period was 23.7% compared to 23.0% for the same period a year ago.
Previous report
Net income increased 19.3%, or $63,405, for the fiscal nine months ended March 31, 2026, compared to the same period in fiscal 2025. The total net income increase, period over period, was lower when adjusted for the impact of the deconversion net income, a gain on assets, net, and a net loss for the acquired company in the current fiscal year period and deconversion net income and the net income related to a contractual change in the prior fiscal year period. The increase excluding these one-time items was primarily driven by net organic growth in our lines of revenue for the nine months ended March 31, 2026, partially offset by commensurate higher operating expenses detailed above tempered by our disciplined approach to controlling costs and the increased provision for income taxes.
Previous report
Services and support revenue increased 7.7% for the fiscal nine months ended March 31, 2026, compared to the same period in fiscal 2025. Total services and support revenue less deconversion revenue of $33,504 for the current fiscal period and less services and support revenue for a contractual change of $14,672 and deconversion revenue of $13,410 for the prior fiscal year period, results in growth of 7.3%, period over period. This increase was primarily driven by growth in data processing and hosting revenues within private and public cloud as new and existing clients migrate to our private cloud and processing volumes expand as well as higher work order and consulting revenues.
Previous report
Processing revenue increased 8.4% for the fiscal nine months ended March 31, 2026, compared to the same period in fiscal 2025. Total processing revenue less processing revenue for the acquired company of $3,595 for the current fiscal year period, results in growth of 7.9%, period over period. This increase was primarily driven by growth in card revenue primarily from monthly service and risk management fees, improvement in Jack Henry digital and transaction revenues from a higher number of active users and expanding volumes and the ramping up of add-on products, and higher faster payments revenue from expanding transactional volumes.
Previous report
Cost of revenue for the fiscal nine months ended March 31, 2026, increased 4.6% compared to the same period in fiscal 2025. Total cost of revenue less deconversion costs of $4,616 and cost of revenue for the acquired company of $4,116 for the current fiscal year period and deconversion costs of $2,228 and costs related to a contractual change of $12,494 for the prior fiscal year period, results in a 5.2% increase, period over period. This increase was primarily due to higher personnel costs partially related to a headcount increase in the trailing twelve months, higher direct costs generally consistent with increases in the related lines of revenue, as well as higher amortization of intangible assets. Personnel cost increases were tempered by the impact of lower-than-normal medical claims earlier in the fiscal year. Cost of revenue decreased 2% as a percentage of total revenue compared to the prior fiscal year period.
Previous report
Research and development expense increased 14.5% for the third quarter of fiscal 2026 compared to the prior fiscal year third quarter. Total research and development costs less research and development costs for the acquired company of $841 for the current fiscal quarter, results in a 12.3% increase, quarter over quarter. This increase was primarily due to higher personnel costs (net of capitalization) partially related to a headcount increase in the trailing twelve months.
Previous report
Selling, general, and administrative expense increased 1.0% in the fiscal nine months ended March 31, 2026, compared to the same period in fiscal 2025. Total selling, general, and administrative expense less deconversion costs of $3,551, costs for the acquired company of $84, and the impact of the gain on assets, net, of $6,829 for the current fiscal year period and deconversion costs of $1,458 for the prior fiscal year period, results in a 3.3% increase, period over period. This increase was primarily due to higher personnel costs partially related to a headcount increase in the trailing twelve months. Personnel cost increases were tempered by the impact of lower-than-normal medical claims earlier in the fiscal year. Selling, general, and administrative expense decreased 1% as a percentage of total revenue compared to the prior fiscal year period.
Previous report
The provision for income taxes increased 15.7% for the third quarter of fiscal 2026, compared to the third quarter of fiscal 2025. The effective tax rate for the current fiscal quarter was 22.5% compared to 21.7% for the same quarter a year ago. The increase in the Company's effective tax rate was primarily due to tax benefits from the purchase of investment tax credits during the prior fiscal year, combined with growth in current year operating income, which diluted the relative impact of tax benefits that were relatively consistent year over year.
Previous report
Net income increased 19.3% to $391,549, or $5.41 per diluted share, for the fiscal nine months ended March 31, 2026, compared to $328,144, or $4.49 per diluted share, in the same period of fiscal 2025. The total net income increase, period over period, was lower when adjusted for the impact of deconversion net income, the gain on assets, net, and a net loss for the acquired company in the current fiscal year period and deconversion net income and the net income related to a contractual change in the prior fiscal year period. The increase excluding these one-time items was primarily driven by net organic growth in our lines of revenue for the nine months ended March 31, 2026, partially offset by commensurate higher operating expenses detailed above, tempered by our disciplined approach to controlling costs and lower than normal medical claims earlier in the fiscal year, as well as the increased provision for income taxes.
Previous report
Revenue in the Core segment increased 5.9% and cost of revenue increased 1.5% for the fiscal nine months ended March 31, 2026, compared to the fiscal nine months ended March 31, 2025. Total Core revenue less Core deconversion revenue of $13,775 for the fiscal nine months ended March 31, 2026, and Core deconversion revenue of $6,105 and Core revenue related to a contractual change of $14,672 for the fiscal nine months ended March 31, 2025, results in a 7.4% increase, period over period. This increase was primarily driven by organic growth in our Core revenue lines including data processing and hosting within private and public cloud as new and existing clients migrate to our private cloud and processing volumes expand. Total Core cost of revenue less Core deconversion costs of $3,117 for the fiscal nine months ended March 31, 2026, and Core costs related to a contractual change of $12,494 and Core deconversion costs of $1,365 for the fiscal nine months ended March 31, 2025, results in a 6.6% increase, period over period. This increase was primarily due to higher Core personnel costs partially related to a headcount increase in the trailing twelve months, tempered by our disciplined approach to controlling costs and lower than normal medical claims earlier in the fiscal year. Core cost of revenue decreased 1% as a percentage of Core revenue for the fiscal nine months ended March 31, 2026, compared to the same period in fiscal 2025.
Previous report
Revenue in the Payments segment increased 8.0% and cost of revenue increased 4.2% for the fiscal nine months ended March 31, 2026, compared to the same period of the prior fiscal year. Total Payments revenue less Payments deconversion revenue of $10,804 and Payments revenue for the acquired company of $3,595 for the fiscal nine months ended March 31, 2026, and Payments deconversion revenue of $4,341 for the fiscal nine months ended March 31, 2025, results in a 6.5% increase, period over period. This increase was primarily due to higher Payments card revenue from an increase in volumes and higher Payments faster payments revenue from expanding transactional volumes. Total Payments cost of revenue less Payments cost of revenue for the acquired company of $3,862 and Payments deconversion costs of $413 for the fiscal nine months ended March 31, 2026, and Payments deconversion costs of $179 for the fiscal nine months ended March 31, 2025, results in a 3.0% increase, period over period. This increase was primarily due to higher direct costs generally consistent with increases in Payments lines of revenue. Payments cost of revenue as a percentage of Payments revenue decreased 1% for the fiscal nine months ended March 31, 2026, compared to the same period in fiscal 2025.
Previous report
Revenue in the Complementary segment increased 9.5% and cost of revenue increased 6.5% for the fiscal nine months ended March 31, 2026, compared to the equivalent period of the prior fiscal year. Total Complementary revenue less Complementary deconversion revenue of $8,632 for the fiscal nine months ended March 31, 2026, and Complementary deconversion revenue of $2,857 for the fiscal nine months ended March 31, 2025, results in an 8.4% increase, period over period. This increase was primarily driven by organic growth in Complementary hosting revenues as new and existing clients continued to migrate to our private cloud and processing volumes expanded and increased Complementary Jack Henry digital and transaction revenue as the number of active users increased and volumes expanded and from the ramping up of add-on products. Total Complementary cost of revenue less Complementary deconversion costs of $1,078 for the fiscal nine months ended March 31, 2026, and Complementary deconversion costs of $678 for the fiscal nine months ended March 31, 2025, results in a 6.3% increase, period over period. This increase was primarily driven by higher direct costs generally consistent with increases in related Complementary lines of revenue and increased amortization of Complementary intangibles from capital software development projects. Complementary cost of revenue as a percentage of Complementary revenue decreased 1% for the fiscal nine months ended March 31, 2026, compared to the same period in fiscal 2025.
Previous report
Revenue in the Corporate Services segment increased 14.5% for the fiscal nine months ended March 31, 2026, compared to the same period last fiscal year. Total Corporate Services revenue less Corporate Services deconversion revenue of $293 for the for the fiscal nine months ended March 31, 2026, and $107 for the fiscal nine months ended March 31, 2025, results in a 14.2% increase, period over period. This increase was primarily due to higher Corporate Services digital and transaction revenues and growth in Corporate Services software usage and subscription revenue. The Corporate Services cost of revenue in the fiscal nine months ended March 31, 2026, increased 6.5% when compared to the prior fiscal year period. Total Corporate Services cost of revenue less Corporate Services cost of revenue for the acquired company of $253 and Corporate Services deconversion costs of $7 for the for the fiscal nine months ended March 31, 2026 and Corporate Services deconversion costs of $5 for the fiscal nine months ended March 31, 2025, results in a 6.4% increase, period over period. This increase was primarily due to higher Corporate Services personnel costs partially related to a headcount increase in the trailing twelve months, tempered by our disciplined approach to controlling costs and lower than normal medical claims earlier in the fiscal year, higher Corporate Services internal licenses and fees, and a loss on Corporate Services assets, net, period over period.
Previous report
On December 23, 2025, the Company signed a contract addendum with a cloud services provider for $450,000 in contractual purchase obligations for the period of December 30, 2025, through June 30, 2033. This commitment replaced $182,000 of the total contractual purchase obligations that were reported in the Company's Annual Report on Form 10-K for the year ended June 30, 2025.
Previous report
The credit agreement described above replaced a prior five-year senior, unsecured amended and restated credit agreement that was entered into on August 31, 2022. The prior credit agreement allowed for borrowings of up to $600,000, which could be increased to $1,000,000 by the Company at any time until maturity. The prior credit agreement bore interest at a variable rate equal to (a) a rate based on an adjusted SOFR term rate or (b) an alternate base rate (the highest of (i) 0.0%, (ii) the Prime Rate for such day, (iii) the sum of the Federal Funds Effective Rate for such dayplus 0.50% per annum and (iv) the Adjusted Term SOFR Screen Rate (without giving effect to the Applicable Margin) for a one month Interest Period on such day for Dollars plus 1.0%), plus an applicable percentage in each case determined by the Company's leverage ratio. The prior credit agreement was guaranteed by certain subsidiaries of the Company and was subject to various financial covenants that required the Company to maintain certain financial ratios as defined in the prior credit agreement. The prior credit agreement's termination date was August 31, 2027. There was no balance outstanding under the prior credit facility at June 30, 2025.
Previous report
On October 31, 2024, the Company entered into a discretionary line of credit demand note, which provided for funding of up to $50,000 and bore interest at the prime rate less 2.0%. The note did not constitute a committed line of credit. The line of credit expired on October 31, 2025. There was no balance outstanding at June 30, 2025.
Reworded paragraphs (35)
Previous wording
Jack Henry & Associates, Inc. is a well-rounded financial technology company headquartered in Monett, Missouri, that employs approximately 7,300 full-time and part-time associates nationwide, and is a leading provider of technology solutions and payment processing services primarily to community and regional banks and credit unions. Our solutions serve approximately 7,400 clients and consist of integrated data processing systems solutions to U.S. banks ranging from de novo to multi-billion-dollar institutions with up to $55 billion and above in assets, core data processing solutions for credit unions of all sizes, and non-core highly specialized core-agnostic products and services that enable banks and credit unions of every asset size and charter, and diverse corporate entities outside the financial services industry, to mitigate and control risks, optimize revenue and growth opportunities, and contain costs. Our integrated solutions are available for on-premise installation and delivery in our private and public cloud.
Current wording
Jack Henry & Associates, Inc. is a well-rounded financial technology company headquartered in Monett, Missouri, that employs approximately 7,300 full-time and part-time associates nationwide, and is a leading provider of technology solutions and payment processing services primarily to community and regional banks and credit unions. Our solutions serve approximately 7,200 clients and consist of integrated data processing systems solutions to U.S. banks ranging from de novo to multi-billion-dollar institutions with up to $55 billion in assets, core data processing solutions for credit unions of all sizes, and core-agnostic products and services that enable banks and credit unions of every asset size and charter, and diverse corporate entities outside the financial services industry, to mitigate and control risks, optimize revenue and growth opportunities, and contain costs. Our integrated solutions are available for on-premise installation and delivery through our cloud services.
Previous wording
Through internal product development, disciplined acquisitions, and alliances with companies offering niche solutions that complement our proprietary solutions, we regularly introduce new products and services and generate new cross-sales opportunities. We provide compatible computer hardware for our on-premise installations and secure processing environments for our outsourced solutions in our private and public cloud. We perform data conversions, software implementations, initial and ongoing client training, and ongoing client support services.
Current wording
Through internal product development, disciplined acquisitions, and alliances with companies offering niche solutions that complement our proprietary solutions, we regularly introduce new products and services and generate new cross-sales opportunities. We provide compatible computer hardware for our on-premise installations and secure processing environments for our outsourced cloud solutions. We perform data conversions, software implementations, initial and ongoing client training, and ongoing client support services.
Previous wording
Our two primary revenue streams are “services and support” and “processing.” Services and support includes: “private and public cloud” revenues that predominantly have contract terms of six years at inception; “product delivery and services” revenues, which include revenues from the sales of licenses, implementation services, deconversions, consulting, and hardware; and “on-premise support” revenues, composed of maintenance fees that primarily contain annual contract terms. Processing includes: "remittance” revenues from payment processing, remote capture, and ACH transactions; “card” revenues, including card transaction processing and monthly fees; and “transaction and digital” revenues, which include transaction and mobile processing revenues. We continually seek opportunities to increase revenue while at the same time containing costs to expand margins.
Current wording
Our two primary revenue streams are “services and support” and “processing.” Services and support includes: “cloud services” (formerly "private and public cloud") revenues that predominantly have contract terms of six years at inception; “product delivery and services” revenues, which include revenues from the sales of licenses, implementation services, deconversions, consulting, and hardware; and “on-premise support” revenues, composed of maintenance fees that primarily contain annual contract terms. Processing includes: "remittance” revenues from payment processing, remote capture, and Automated Clearing House transactions; "faster payments" revenues from electronic payment services; “card” revenues, including card transaction processing and monthly fees; and “transaction and digital” revenues, which include transaction and mobile processing revenues. We continually seek opportunities to increase revenue while at the same time containing costs to expand margins. We changed the name for our cloud services from “private and public cloud” to “cloud services” beginning in the first quarter of fiscal 2027 to simplify presentation and improve clarity. This does not represent any change to the products or services we offer or to previously reported financial results, and prior period amounts are presented on a consistent basis.
Previous wording
For the third quarter of fiscal 2026, total revenue increased 8.7%, or $51,158, compared to the same quarter in fiscal 2025. Total revenue less deconversion revenue of $18,665 and acquisition revenue of $1,651 for the current fiscal quarter and less deconversion revenue of $9,644 and revenue related to a contractual change of $1,201 for the prior fiscal year third quarter results in an increase of 7.3% quarter over quarter. This increase was primarily driven by organic growth in our revenue lines including data processing and hosting within private and public cloud, Jack Henry digital and transaction, card, and faster payments.
Current wording
For the first quarter of fiscal 2027, total revenue increased 8.8%, or $56,809, compared to the same quarter in fiscal 2026. Total revenue less deconversion revenue of $17,918 and acquisition revenue of $1,451 for the current fiscal quarter and less deconversion revenue of $8,626 for the prior fiscal year first quarter results in an increase of 7.2% quarter over quarter. This increase was primarily driven by organic growth in our revenue lines including hosting, card, digital and transaction, and faster payments.
Previous wording
Operating expenses increased 7.8%, or $34,851, for the third quarter of fiscal 2026 compared to the third quarter of fiscal 2025. Total operating expenses less deconversion operating expenses of $4,030 and operating expenses for the acquired company of $2,484 for the current fiscal quarter and less operating expenses related to deconversion operating expenses of $2,794 and a contractual change of $992 for the prior fiscal year third quarter results in an increase of 7.3% quarter over quarter. This increase was primarily driven by higher personnel costs and increased direct costs, quarter over quarter.
Current wording
Operating expenses increased 7.3%, or $33,803, for the first quarter of fiscal 2027 compared to the first quarter of fiscal 2026. Total operating expenses less deconversion operating expenses of $2,719 and operating expenses for the company acquired in the prior fiscal year of $2,210 for the current fiscal quarter and less deconversion operating expenses of $1,525 and a gain on certain assets, net, of $3,796 for the prior fiscal year first quarter results in an increase of 5.7% quarter over quarter. This increase was primarily driven by higher direct costs and higher personnel costs partly related to trailing twelve month headcount growth, partially offset by lower expenses related to the timing of our Connect conference, quarter over quarter, which was held in the first quarter of fiscal 2026, but was held in the second quarter of fiscal 2027.
Previous wording
Operating income increased 11.8%, or $16,307, for the third quarter of fiscal 2026 compared to the third quarter of fiscal 2025. Total operating income less the impact of deconversion operating income of $14,635 and an operating loss for the acquired company of $833 for the current fiscal quarter and less deconversion operating income of $6,851 and operating income related to a contractual change of $209 for the prior fiscal year third quarter results in an increase of 7.3%, quarter over quarter. This increase was primarily driven by organic revenue growth, partially offset by increased operating expenses detailed above tempered by our disciplined approach to controlling costs, quarter over quarter.
Current wording
Operating income increased 12.5%, or $23,006, for the first quarter of fiscal 2027 compared to the first quarter of fiscal 2026. Total operating income less the impact of deconversion operating income of $15,199 and an operating loss for the company acquired in the prior fiscal year of $759 for the current fiscal quarter and less deconversion operating income of $7,101 and a gain on certain assets, net, of $3,796 for the prior fiscal year first quarter results in an increase of 11.2%, quarter over quarter. This increase was primarily driven by organic revenue growth, partially offset by increased operating expenses detailed above tempered by our disciplined approach to controlling compensation, headcount, and infrastructure costs, quarter over quarter.
Previous wording
The provision for income taxes increased 15.7%, or $4,847, for the third quarter of fiscal 2026 compared to the third quarter of fiscal 2025. This increase was primarily driven by the increase in income before income taxes. The effective tax rate for the current fiscal quarter was 22.5% compared to 21.7% for the same quarter a year ago.
Current wording
The provision for income taxes increased 8.4%, or $3,891, for the first quarter of fiscal 2027 compared to the first quarter of fiscal 2026. This increase was primarily driven by the increase in income before income taxes. The effective tax rate for the current fiscal quarter was 23.8% compared to 24.3% for the same quarter a year ago.
Previous wording
Net income increased 10.6%, or $11,786, for the third quarter of fiscal 2026 compared to the third quarter of fiscal 2025. The total net income increase, quarter over quarter, was lower when adjusted for the impact of deconversion net income and a net loss for the acquired company in the current fiscal quarter and the net income related to deconversion net income and a contractual change in the prior fiscal year third quarter. The increase, excluding these one-time items, was primarily driven by net organic growth in our lines of revenue for the third quarter of fiscal 2026 partially offset by commensurate higher operating expenses detailed above that were tempered by our disciplined approach to controlling costs and the increased provision for income taxes.
Current wording
Net income increased 11.4%, or $16,426, for the first quarter of fiscal 2027 compared to the first quarter of fiscal 2026. The total net income increase, quarter over quarter, was lower when adjusted for the impact of deconversion net income and a net loss for the company acquired in the prior fiscal year in the current fiscal quarter and deconversion net income and a gain on certain assets, net, in the prior fiscal year first quarter. The increase, excluding these items, was primarily driven by net organic growth in our lines of revenue for the first quarter of fiscal 2027 partially offset by commensurate higher operating expenses detailed above that were tempered by our disciplined approach to controlling compensation, headcount, and infrastructure costs and the increased provision for income taxes.
Previous wording
As we move into the fourth quarter of fiscal 2026 – our 50 th year in business – we are excited and confident about our future, and we remain well-positioned to deliver durable, consistent growth and attractive results for our stockholders. Technology spending by financial institutions remains strong, and there is clear demand for our differentiated and innovative technology solutions. We have a very healthy sales pipeline and a proven ability to attract and win deals, especially with larger financial institutions. Our unwavering focus on culture, service, innovation, strategy, and execution continues to set us apart in the market and will enable us to drive continued industry-leading revenue growth with strong margin expansion, benefiting our associates, clients, and stockholders.
Current wording
As we move into the second quarter of fiscal 2027 – our 51 styear in business – we are excited and confident about our future, and we remain well-positioned to deliver durable, consistent growth and attractive results for our stockholders. Technology spending by financial institutions remains strong, and there is clear demand for our differentiated and innovative technology solutions. We have a very healthy sales pipeline and a proven ability to attract and win deals, especially with larger financial institutions. Our unwavering focus on culture, service, innovation, strategy, and execution continues to set us apart in the market and will enable us to drive continued industry-leading revenue growth with strong margin expansion, benefiting our associates, clients, and stockholders.
Previous wording
A detailed discussion of the major components of the results of operations for the fiscal three and nine months ended March 31, 2026, follows.
Current wording
A detailed discussion of the major components of the results of operations for the fiscal three months ended September 30, 2026, follows.
Previous wording
Discussions compare the current fiscal year's three and nine months ended March 31, 2026, to the prior fiscal year's three and nine months ended March 31, 2025.
Current wording
Discussions compare the current fiscal year's three months ended September 30, 2026, to the prior fiscal year's three months ended September 30, 2025.
Previous wording
Services and support revenue increased 10.4% for the third quarter of fiscal 2026 compared to the same quarter a year ago. Total services and support revenue less deconversion revenue of $18,665 for the current fiscal quarter and less deconversion revenue of $9,644 and services and support revenue related to a contractual change of $1,201 for the prior fiscal year third quarter, results in growth of 8.3%, quarter over quarter. This increase was primarily driven by growth in data processing and hosting revenues within private and public cloud as new and existing clients continue to migrate to our private cloud and processing volumes expand.
Current wording
Services and support revenue increased 7.5% for the first quarter of fiscal 2027 compared to the same quarter a year ago. Total services and support revenue less deconversion revenue of $17,918 for the current fiscal quarter and less deconversion revenue of $8,626 for the prior fiscal year first quarter, results in growth of 5.1%, quarter over quarter. This increase was primarily driven by growth in hosting revenue as new and existing clients continue to migrate to the cloud and processing volumes expand, as well as higher software usage, partially offset by the decrease in revenue related to the timing of our Connect conference.
Previous wording
Processing revenue increased 6.6% for the third quarter of fiscal 2026 compared to the same quarter last fiscal year. Total processing revenue less processing revenue for the acquired company of $1,651 for the current fiscal quarter, results in growth of 6.0%, quarter over quarter. This increase was primarily driven by improvement in Jack Henry digital and transaction revenues from a higher number of active users and the ramping up of add-on products, growth in card revenue from monthly service and risk management fees, and higher faster payments revenue from expanding transactional volumes.
Current wording
Processing revenue increased 10.7% for the first quarter of fiscal 2027 compared to the same quarter last fiscal year. Total processing revenue less processing revenue for the company acquired in the prior fiscal year of $1,451 for the current fiscal quarter, results in growth of 10.2%, quarter over quarter. This increase was primarily driven by improvement in card revenue from monthly service and risk management fees, increased digital and transaction revenues from a higher number of active users and the ramping up of additional products, and higher faster payments revenue from expanding transactional volumes.
Previous wording
Cost of revenue for the third quarter of fiscal 2026 increased 6.9% over the prior fiscal year third quarter. Total cost of revenue less deconversion costs of $2,584 and cost of revenue for the acquired company of $1,612 for the current fiscal quarter and less deconversion costs of $1,873 and costs related to a contractual change of $992 for the prior fiscal year third quarter, results in a 6.5% increase, quarter over quarter. This increase was primarily due to higher personnel costs partially related to a headcount increase in the trailing twelve months, higher direct costs generally consistent with increases in the related lines of revenue, as well as increased amortization of intangible assets. Cost of revenue decreased 1% as a percentage of total revenue compared to the prior fiscal year third quarter.
Current wording
Cost of revenue for the first quarter of fiscal 2027 increased 7.9% over the prior fiscal year first quarter. Total cost of revenue less deconversion costs of $1,507 and cost of revenue for the company acquired in the prior fiscal year of $1,532 for the current fiscal quarter and less deconversion costs of $904 for the prior fiscal year first quarter, results in a 7.3% increase, quarter over quarter. This increase was primarily due to higher direct costs generally consistent with increases in the related lines of revenue, higher personnel costs partly related to headcount growth in the trailing twelve months, higher cloud consumption, including artificial intelligence (AI) and security costs, increased amortization of intangible assets, and higher licenses and fees, including infrastructure costs, partially offset by the increase in labor cost deferral. Cost of revenue remained consistent as a percentage of total revenue compared to the prior fiscal year first quarter.
Previous wording
Research and development expense increased 5.3% for the fiscal nine months ended March 31, 2026, compared to the same period in fiscal 2025. Total research and development costs less research and development costs for the acquired company of $1,213 for the current fiscal year period, results in a 4.3% increase, period over period. This increase was primarily due to higher personnel costs (net of capitalization) partially related to a headcount increase in the trailing twelve months. Research and development expense remained consistent as a percentage of total revenue compared to the prior fiscal year third quarter and prior fiscal year period.
Current wording
Research and development expense increased 16.6% for the first quarter of fiscal 2027 compared to the prior fiscal year first quarter. Total research and development costs less research and development costs for the company acquired in the prior fiscal year of $658 for the current fiscal quarter, results in a 14.9% increase, quarter over quarter. This increase was primarily due to higher personnel costs (net of capitalization) partly related to headcount growth in the trailing twelve months. Research and development remained consistent as a percentage of total revenue compared to the prior fiscal year first quarter.
Previous wording
Selling, general, and administrative expense increased 8.8% in the third quarter of fiscal 2026 compared to the same quarter in the prior fiscal year. Total selling, general, and administrative expense less deconversion costs of $1,446 and costs for the acquired company of $30 for the current fiscal quarter and deconversion costs of $920 for the prior fiscal year third quarter results in an 8.0% increase, quarter over quarter. This increase was primarily due to higher personnel costs partially related to a headcount increase in the trailing twelve months. Selling, general, and administrative expense remained consistent as a percentage of total revenue compared to the prior fiscal year third quarter.
Current wording
Selling, general, and administrative expense decreased 0.2% in the first quarter of fiscal 2027 compared to the same quarter in the prior fiscal year. Total selling, general, and administrative expense less deconversion costs of $1,212 and costs for the company acquired in the prior fiscal year of $20 for the current fiscal quarter and less deconversion costs of $621 and a gain on certain assets, net, of $3,796 for the prior fiscal year first quarter results in a 6.0% decrease, quarter over quarter. This decrease was primarily due to lower expenses related to the timing of our Connect conference. Selling, general, and administrative expense decreased 1% as a percentage of total revenue compared to the prior fiscal year first quarter.
Previous wording
Interest income and interest expense decreased due to lower interest-earning and credit line balances, respectively, for the fiscal three and nine months ended March 31, 2026, compared to the fiscal three and nine months ended March 31, 2025.
Current wording
Interest income decreased and interest expense increased due to lower interest-earning balances and higher credit line balances, respectively, for the fiscal three months ended September 30, 2026, compared to the fiscal three months ended September 30, 2025.
Previous wording
The provision for income taxes increased 24.1% for the nine months ended March 31, 2026, compared to the same period a year ago. The effective tax rate for the current fiscal year-to-date period was 23.7% compared to 23.0% for the same period a year ago. The increase in the effective tax rate was primarily due to differences in the tax impacts of stock-based compensation between the two periods, tax benefits from the purchase of investment tax credits during the prior fiscal year, and growth in current year operating income, which diluted the relative impact of tax benefits that were relatively consistent year over year.
Current wording
The provision for income taxes increased 8.4% for the first quarter of fiscal 2027, compared to the first quarter of fiscal 2026. The effective tax rate for the current fiscal quarter was 23.8% compared to 24.3% for the same quarter a year ago. The decrease in the Company's effective tax rate was primarily attributable to purchased tax credit benefits recognized during the current quarter that were not present in the prior-year quarter, as well as differences in the tax effects of stock-based compensation between the two periods.
Previous wording
Net income increased 10.6% to $122,894, or $1.71 per diluted share, for the third quarter of fiscal 2026 compared to $111,108, or $1.52 per diluted share, in the same quarter of fiscal 2025. The total net income increase, quarter over quarter, was lower when adjusted for the impact of deconversion net income and a net loss for the acquired company in the current fiscal quarter and deconversion net income and net income related to a contractual change in the prior fiscal year third quarter. The increase excluding these one-time items was primarily driven by net organic growth in our lines of revenue for the third quarter of fiscal 2026 partially offset by commensurate higher operating expenses detailed above that were tempered by our disciplined approach to controlling costs, as well as the increased provision for income taxes.
Current wording
Net income increased 11.4% to $160,412, or $2.28 per diluted share, for the first quarter of fiscal 2027 compared to $143,986, or $1.97 per diluted share, in the same quarter of fiscal 2026. Diluted earnings per share increased at a higher rate than net income primarily due to a decrease in diluted weighted-average shares outstanding resulting from share repurchases. The total net income increase, quarter over quarter, was lower when adjusted for the impact of deconversion net income and a net loss for the company acquired in the prior fiscal year in the current fiscal quarter and the deconversion net income and a gain on certain assets, net, in the prior fiscal year first quarter. The increase excluding these items was primarily driven by net organic growth in our lines of revenue for the first quarter of fiscal 2027 partially offset by commensurate higher operating expenses detailed above that were tempered by our disciplined approach to controlling compensation, headcount, and infrastructure costs, as well as the increased provision for income taxes.
Previous wording
The Company’s operations are classified into four reportable segments: Core, Payments, Complementary, and Corporate Services. The Core segment provides core information processing platforms to banks and credit unions, which consist of integrated applications required to process deposit, loan, and general ledger transactions, and maintain centralized accountholder information. The Payments segment provides secure payment processing tools and services, including ATM, debit, and credit card processing services, online and mobile bill pay solutions, money movement and embedded payment capabilities, remote deposit capture processing, and risk management products and services. The Complementary segment provides additional software, hosted processing platforms, and services, including digital/mobile banking, treasury services, online account opening, fraud/AML and lending/deposit solutions that can be integrated with the Company's Core solutions, and many can be used independently. The Corporate Services segment includes revenue and direct costs from hardware and other products and services and our technology infrastructure costs.
Current wording
The Company’s operations are classified into four reportable segments: Core, Payments, Complementary, and Corporate Services (formerly "Corporate and Other"). The Core segment provides core information processing platforms to banks and credit unions, which consist of integrated applications required to process deposit, loan, and general ledger transactions, and maintain centralized accountholder information. The Payments segment provides secure payment processing tools and services, including ATM, debit, and credit card processing services, online and mobile bill pay solutions, money movement and embedded payment capabilities, remote deposit capture processing, and risk management products and services. The Complementary segment provides additional software, hosting platforms, and services, including digital/mobile banking, treasury services, online account opening, fraud/AML and lending/deposit solutions that can be integrated with the Company's Core solutions, and many can be used independently. The Corporate Services segment includes revenue and direct costs from hardware and other products and services and our technology infrastructure costs.
Previous wording
The Company's Chief Executive Officer, who is also the Company's CODM, regularly evaluated segment performance and made strategic decisions on the allocation of resources to the segments based on various factors, including performance against trend, budget, and forecast for the fiscal three and nine months ended March 31, 2026, and 2025. The CODM also used reportable segment revenue, costs of revenue, and segment income to evaluate segment performance and allocate resources. The Company has not disclosed any additional asset information by segment, as the information is not generated for internal management reporting to the CODM.
Current wording
The Company's Chief Executive Officer, who is also the Company's CODM, regularly evaluates segment performance and makes strategic decisions on the allocation of resources to the segments based on various factors, including performance against trend, budget, and forecast for the fiscal three months ended September 30, 2026, and 2025. The CODM also uses reportable segment revenue, costs of revenue, and segment income to evaluate segment performance and allocate resources. The Company has not disclosed any additional asset information by segment, as the information is not generated for internal management reporting to the CODM.
Previous wording
During the fiscal nine months ended March 31, 2026, the Company transferred a product from the Corporate Services segment to the Complementary segment due to better alignment with the Complementary segment. As a result of this transfer, adjustments were made during the fiscal three and nine months ended March 31, 2026, to reclassify related revenue and cost of revenue recognized for the fiscal three and nine months ended March 31, 2025, from the Corporate Services segment to the Complementary segment. Revenue reclassed for the fiscal three and nine months ended March 31, 2025, was $3,327 and $9,799, respectively. Cost of revenue reclassed for the fiscal three and nine months ended March 31, 2025, was $762 and $2,208, respectively.
Current wording
During the fiscal three months ended September 30, 2026, the Company transferred a product from the Core segment to the Complementary segment due to better alignment with the Complementary segment. As a result of this transfer, adjustments were made during the fiscal three months ended September 30, 2026, to reclassify related revenue and cost of revenue recognized for the fiscal three months ended September 30, 2025, from the Core segment to the Complementary segment. Revenue reclassed for the fiscal three months ended September 30, 2025, was $5,292. Cost of revenue reclassed for the fiscal three months ended September 30, 2025, was $746.
Previous wording
Immaterial adjustments have been made between segments during the fiscal three and nine months ended March 31, 2026, to reclassify revenue and cost of revenue that was recognized for the fiscal three and nine months ended March 31, 2025. These reclasses were made to be consistent with the current allocation of revenue and cost of revenue by segment. Revenue reclassed for the fiscal three and nine months ended March 31, 2025, from the Core segment to the Complementary segment, was $1,673 and $4,575, respectively. Cost of revenue reclassed for the fiscal three and nine months ended March 31, 2025, from the Core segment to the Complementary segment, was $479 and $1,367, respectively. Cost of revenue reclassed for the fiscal three and nine months ended March 31, 2025, from the Core segment to the Corporate Services segment, was $66 and $200, respectively.
Current wording
Immaterial adjustments have been made between segments during the fiscal three months ended September 30, 2026, to reclassify cost of revenue that was recognized for the fiscal three months ended September 30, 2025. These reclasses were made to be consistent with the current allocation of cost of revenue by segment. Cost of revenue reclassed for the fiscal three months ended September 30, 2025, from the Core segment to the Corporate Services segment, was $757.
Previous wording
Revenue in the Core segment increased 9.2% and cost of revenue increased 8.7% for the fiscal three months ended March 31, 2026, compared to the fiscal three months ended March 31, 2025. Total Core revenue less Core deconversion revenue of $7,506 for the fiscal three months ended March 31, 2026, and less Core deconversion revenue of $4,838 and less Core revenue related to a contractual change of $1,201 for the fiscal three months ended March 31, 2025, results in a 8.6% increase, quarter over quarter. This increase was primarily driven by organic growth in our Core revenue lines including data processing and hosting within private and public cloud as new and existing clients continue to migrate to our private cloud and processing volumes expand. Total Core cost of revenue less Core deconversion costs of $1,971 for the fiscal three months ended March 31, 2026, and less Core deconversion costs of $1,240 and Core costs related to a contractual change of $992 for the fiscal three months ended March 31, 2025, results in a 9.3% increase, quarter over quarter. This increase was primarily due to higher Core direct costs generally consistent with increases in related Core lines of revenue and higher Core personnel costs partially related to a headcount increase in the trailing twelve months. Core cost of revenue remained consistent as a percentage of Core revenue for the third quarter of fiscal 2026 compared to the same quarter in fiscal 2025.
Current wording
Revenue in the Core segment increased 7.1% and cost of revenue increased 6.4% for the fiscal three months ended September 30, 2026, compared to the fiscal three months ended September 30, 2025. Total Core revenue less Core deconversion revenue of $7,411 for the fiscal three months ended September 30, 2026, and less Core deconversion revenue of $3,219 for the fiscal three months ended September 30, 2025, results in a 4.9% increase, quarter over quarter. This increase was primarily driven by organic growth in our Core revenue lines including hosting as new and existing clients continue to migrate to the cloud and processing volumes expand. Total Core cost of revenue less Core deconversion costs of $888 for the fiscal three months ended September 30, 2026, and less Core deconversion costs of $443 for the fiscal three months ended September 30, 2025, results in a 5.8% increase, quarter over quarter. This increase was primarily due to higher Core direct costs generally consistent with increases in related Core lines of revenue, and higher Core personnel costs partly related to headcount growth in the trailing twelve months, partially offset by the increase in Core labor cost deferral. Core cost of revenue as a percentage of Core revenue decreased 1% for the first quarter of fiscal 2027 compared to the same quarter in fiscal 2026.
Previous wording
Revenue in the Payments segment increased 7.0% and cost of revenue increased 2.9% for the third quarter of fiscal 2026 compared to the same quarter last fiscal year. Total Payments revenue less Payments deconversion revenue of $5,923 and Payments revenue for the acquired company of $1,651 for the third quarter of fiscal 2026 and Payments deconversion revenue of $2,394 for the third quarter of fiscal 2025, results in a 4.7% increase, quarter over quarter. This increase was primarily due to higher Payments card revenue from an increase in volume and higher Payments faster payments revenue from expanding transactional volumes. Total Payments cost of revenue less Payments cost of revenue for the acquired company of $1,453 and Payments deconversion cost of revenue of $124 for the third quarter of fiscal 2026 and Payments deconversion cost of revenue of $108 for the third quarter of fiscal 2025, results in a 1.6% increase, quarter over quarter. This increase was primarily due to higher Payments personnel costs partially related to a headcount increase in the trailing twelve months and direct costs generally consistent with increases in Payments lines of revenue. Payments cost of revenue as a percentage of Payments revenue decreased 2% for the third quarter of fiscal 2026 compared to the same quarter in fiscal 2025.
Current wording
Revenue in the Payments segment increased 9.2% and cost of revenue increased 5.6% for the first quarter of fiscal 2027 compared to the same quarter last fiscal year. Total Payments revenue less Payments deconversion revenue of $4,313 and Payments revenue for the company acquired in the prior fiscal year of $1,451 for the first quarter of fiscal 2027 and Payments deconversion revenue of $3,483 for the first quarter of fiscal 2026, results in an 8.3% increase, quarter over quarter. This increase was primarily due to higher Payments card revenue from monthly service and risk management fees and higher Payments faster payments revenue from expanding transactional volumes. Total Payments cost of revenue less Payments cost of revenue for the company acquired in the prior fiscal year of $1,427 and Payments deconversion cost of revenue of $164 for the first quarter of fiscal 2027 and Payments deconversion cost of revenue of $151 for the first quarter of fiscal 2026, results in a 4.4% increase, quarter over quarter. This increase was primarily due to higher Payments direct costs generally consistent with increases in
Previous wording
Revenue in the Complementary segment increased 8.7% and cost of revenue increased 4.5% for the third quarter of fiscal 2026 compared to the same quarter last fiscal year. Total Complementary revenue less Complementary deconversion revenue of $5,054 for the third quarter of fiscal 2026 and Complementary deconversion revenue of $2,324 for the third quarter of fiscal 2025, results in a 7.2% increase, quarter over quarter. This increase was primarily driven by organic growth in Complementary hosting revenue as new and existing clients continue to migrate to our private cloud and processing volumes expanded and Complementary Jack Henry digital and transaction revenue from a higher number of active users and the ramping up of add-on products. Complementary cost of revenue less Complementary deconversion costs of $482 for the third quarter of fiscal 2026 and Complementary deconversion costs of $519 for the third quarter of fiscal 2025, results in a 4.6% increase, quarter over quarter. This increase was primarily driven by higher direct costs generally consistent with increases in related Complementary lines of revenue and increased amortization of Complementary intangibles from capital software development projects. Complementary cost of revenue as a percentage of Complementary revenue decreased 1% for the third quarter of fiscal 2026 compared to the same quarter in fiscal 2025.
Current wording
Revenue in the Complementary segment increased 10.4% and cost of revenue increased 2.4% for the first quarter of fiscal 2027 compared to the same quarter last fiscal year. Total Complementary revenue less Complementary deconversion revenue of $5,905 for the first quarter of fiscal 2027 and Complementary deconversion revenue of $1,876 for the first quarter of fiscal 2026, results in an 8.4% increase, quarter over quarter. This increase was primarily driven by organic growth in Complementary hosting revenue as new and existing clients continue to migrate to the cloud and processing volumes expand and Complementary digital and transaction revenues from a higher number of active users and the ramping up of additional products. Complementary cost of revenue less Complementary deconversion costs of $446 for the first quarter of fiscal 2027 and Complementary deconversion costs of $308 for the first quarter of fiscal 2026, results in a 2.2% increase, quarter over quarter. This increase was primarily driven by higher Complementary direct costs generally consistent with increases in related Complementary lines of revenue, and higher Complementary personnel costs partly related to headcount growth in the trailing twelve months, partially offset by the increase in Complementary labor cost deferral. Complementary cost of revenue as a percentage of Complementary revenue decreased 3% for the first quarter of fiscal 2027 compared to the same quarter in fiscal 2026.
Previous wording
Revenue classified in the Corporate Services segment includes revenues from hardware and other products and services. Revenue in the Corporate Services segment increased 27.5% for the third quarter of fiscal 2026 compared to the same quarter last fiscal year. Total Corporate Services revenue less Corporate Services deconversion revenue of $182 for the third quarter of fiscal 2026 and Corporate Services deconversion revenue of $88 for the third quarter of fiscal 2025, results in a 27.1% increase, quarter over quarter. This increase was primarily due to the growth in Corporate Services hardware revenue and digital and transaction revenue, quarter over quarter. Cost of revenue for the Corporate Services segment includes direct costs from hardware and other products and services and our technology infrastructure costs. The Corporate Services cost of revenue in the third quarter of fiscal 2026 increased 12.9% when compared to the prior fiscal year quarter. Total Corporate Services cost of revenue less Corporate Services deconversion costs of $6 and Corporate Services cost of revenue for the acquired company of $159 for the third quarter of fiscal 2026 and Corporate Services deconversion costs of $5 for the third quarter of fiscal 2025, results in a 12.7% increase, quarter over quarter. This increase was primarily due to higher Corporate Services personnel costs partially related to a headcount increase in the trailing twelve months, tempered by our disciplined approach to controlling costs and lower than normal medical claims earlier in the fiscal year, a loss on Corporate Services assets, net, and higher Corporate Services internal licenses and fees, quarter over quarter.
Current wording
Revenue classified in the Corporate Services segment includes revenues from hardware and other products and services. Revenue in the Corporate Services segment increased 6.2% for the first quarter of fiscal 2027 compared to the same quarter last fiscal year. Total Corporate Services revenue less Corporate Services deconversion revenue of $289 for the first quarter of fiscal 2027 and Corporate Services deconversion revenue of $48 for the first quarter of fiscal 2026, results in a 5.2% increase, quarter over quarter. This increase was primarily due to the growth in Corporate Services hardware revenue, on-premise support, digital and transaction, and hosting revenues, partially offset by the decrease in revenue related to the timing of our Connect conference, quarter over quarter. Cost of revenue for the Corporate Services segment includes direct costs from hardware and other products and services and our technology infrastructure costs. The Corporate Services cost of revenue in the first quarter of fiscal 2027 increased 17.0% when compared to the prior fiscal year quarter. Total Corporate Services cost of revenue less Corporate Services deconversion costs of $9 and Corporate Services cost of revenue for the company acquired in the prior fiscal year of $106 for the first quarter of fiscal 2027 and Corporate Services deconversion costs of $1 for the first quarter of fiscal 2026, results in a 16.9% increase, quarter over quarter. This increase was primarily due to higher Corporate Services cloud consumption, including AI, higher Corporate Services personnel costs partly related to headcount growth in the trailing twelve months, higher Corporate Services internal licenses and fees, including infrastructure costs, higher Corporate Services direct costs from hardware, and amortization of intangible assets, quarter over quarter.
Previous wording
The Company's cash and cash equivalents decreased to $20,573 at March 31, 2026, from $101,953 at June 30, 2025.
Current wording
The Company's cash and cash equivalents increased to $25,356 at September 30, 2026, from $12,056 at June 30, 2026.
Previous wording
*For the fiscal nine months ended March 31, 2026, the change in other assets and liabilities includes the change in prepaid expenses, deferred costs and other of $(61,680), the change in accrued expenses of $(19,137), and the change in income taxes of $(8,383). For the fiscal nine months ended March 31, 2025, the change in other assets and liabilities includes the change in prepaid expenses, deferred costs and other of $(42,989) and the change in accrued expenses of $(23,436), partially offset by the change in income taxes of $15,540.
Current wording
*For the fiscal three months ended September 30, 2026, the change in other assets and liabilities includes the change in accrued expenses of $(34,551), the change in prepaid expenses, deferred costs and other of $(31,640), and the change in accounts payable of $(4,123), partially offset by the change in income taxes of $35,821. For the fiscal three months ended September 30, 2025, the change in other assets and liabilities includes the change in accrued expenses of $(36,567), the change in prepaid expenses, deferred costs and other of $(34,336), the change in income taxes of $(9,150), and the change in accounts payable of $(6,637).
Previous wording
Cash used in investing activities for the first nine months of fiscal 2026 totaled $220,145 and included: $140,003 for the ongoing enhancement and development of existing and new product and service offerings; capital expenditures for facilities and equipment of $46,616; $42,390 for an acquisition; the purchase of investments of $13,710, and $2,998 for the purchase and development of internal use software. Cash uses were partially offset by proceeds from the sale of assets of $24,572 and proceeds from investments of $1,000. Cash used in investing activities for the first nine months of fiscal 2025 totaled $176,317 and included: $130,298 for the development of software; $41,186 for capital expenditures; $3,833 for the purchase and development of internal use software; and $2,000 for the purchase of investments. Cash uses were partially offset by proceeds from investments of $1,000.
Current wording
Cash provided by operating activities for the first three months of fiscal 2027 increased 34% compared to the same period last fiscal year primarily due to the changes in income taxes and deferred income taxes quarter over quarter. Cash from operations is primarily used to repay debt, pay dividends, repurchase stock, make capital expenditures, and acquire companies. Cash used in investing activities for the first three months of fiscal 2027 totaled $75,321 and included: $49,784 for the ongoing enhancement and development of existing and new product and service offerings; capital expenditures for facilities and equipment of $26,960; $1,577 for the purchase and development of internal use software; and the purchase of investments of $1,000. Cash uses were partially offset by proceeds from investments of $4,000. Cash used in investing activities for the first three months of fiscal 2026 totaled $98,503 and included: $48,203 for the development of software; $42,390 for an acquisition, net; $8,880 for capital expenditures; $6,000 for the purchase of investments; and $1,509 for the purchase and development of internal use software. Cash uses were partially offset by proceeds from sale of assets of $7,479, and proceeds from investments of $1,000.
Previous wording
Financing activities used cash of $320,521 for the first nine months of fiscal 2026 and included: $284,414 for the purchase of treasury stock; repayments on credit facilities of $270,000; and dividends paid to stockholders of $127,457. Cash uses were partially offset by borrowings on credit facilities of $360,000 and $1,350 net cash inflow from the issuance of stock and tax withholding related to stock-based compensation. Financing activities used cash of $136,489 in the first nine months of fiscal 2025 and included: $235,000 for the repayments on credit facilities; $122,464 for the payment of dividends; and $35,052 for the purchase of treasury stock. Cash uses were partially offset by borrowings on credit facilities of $255,000 and $1,027 net cash inflow from the issuance of stock and tax withholding related to stock-based compensation.
Current wording
Financing activities used cash of $72,632 for the first three months of fiscal 2027 and included: repayments on credit facilities of $143,000; $70,903 for the purchase of treasury stock; dividends paid to stockholders of $42,768; and $3,961 net cash outflow from the issuance of stock and tax withholding related to stock-based compensation. Cash uses were partially offset by borrowings on credit facilities of $188,000. Financing activities used cash of $87,801 in the first three months of fiscal 2026 and included: $62,045 for the purchase of treasury stock; $42,145 for the payment of dividends; and $3,611 net cash outflow from the issuance of stock and tax withholding related to stock-based compensation. Cash uses were partially offset by borrowings on credit facilities of $20,000.
Previous wording
The Company generally uses existing resources and funds generated from operations to meet its capital requirements. Capital expenditures totaling $46,616 and $41,186 for the fiscal nine months ended March 31, 2026, and March 31, 2025, respectively, were made primarily for additional equipment and the improvement of existing facilities. These additions were funded from cash generated by operations. Total consolidated capital expenditures on facilities and equipment for the Company for fiscal year 2026 are expected to be between approximately $100,000 and $130,000 and have been or will be funded from our credit facilities and cash generated by operations.
Current wording
The Company generally uses existing resources and funds generated from operations to meet its capital requirements. Capital expenditures totaling $26,960 and $8,880 for the fiscal three months ended September 30, 2026, and September 30, 2025, respectively, were made primarily for additional equipment and the improvement of existing facilities. These additions were funded from available liquidity, including cash generated by operations and borrowings under our credit facilities. Total consolidated capital expenditures on facilities and equipment for the Company for fiscal year 2027 are expected to be between approximately $70,000 and $80,000 and have been or will be funded from our credit facilities and cash generated by operations.
Previous wording
The Board of Directors has authorized the Company to repurchase shares of its common stock. Under this authorization, the Company may finance its share repurchases with available cash reserves or borrowings on its existing credit facilities. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At March 31, 2026, there were 33,361 shares in treasury stock and the Company had the remaining authority to repurchase up to 1,630 additional shares. The total cost of treasury stock at March 31, 2026, was $2,179,638. During the first nine months of fiscal 2026, the Company repurchased 1,781 shares. At June 30, 2025, there were 31,580 shares in treasury stock and the Company had the remaining authority to repurchase up to 3,411 additional shares. The total cost of treasury stock at June 30, 2025, was $1,895,224. During the first nine months of fiscal 2025, the Company repurchased 207 shares.
Current wording
The Board of Directors has authorized the Company to repurchase shares of its common stock. Under this authorization, the Company may finance its share repurchases with available cash reserves or borrowings on its existing credit facilities. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At September 30, 2026, there were 34,989 shares in treasury stock and the Company had the remaining authority to repurchase up to 5,002 additional shares. The total cost of treasury stock at September 30, 2026, was $2,414,300. During the first three months of fiscal 2027, the Company repurchased 462 shares. At June 30, 2026, there were 34,527 shares in treasury stock and the Company had the remaining authority to repurchase up to 5,464 additional shares. The total cost of treasury stock at June 30, 2026, was $2,343,397. During the first three months of fiscal 2026, the Company repurchased 389 shares.
Previous wording
On March 25, 2026, the Company entered into a five-year, revolving, unsecured credit agreement that replaced the prior credit agreement described below. The credit agreement allows for borrowings of up to $1,000,000 and allows for additional revolving credit commitments and/or term loan commitments, pursuant to the terms and subject to certain limitations set forth in the credit agreement. The credit agreement bears interest at a variable rate equal to, at the option of the Company, either (a) a rate based on adjusted Term Secured Overnight Financing Rate ("SOFR") rate or (b) an alternate base rate (the highest of (i) 0.0%, (ii) U.S. Bank's prime rate, (iii) the Federal Funds Rate plus 0.50% and (iv) a one month adjusted Term SOFR rate plus 1.0%), plus an applicable percentage in each case determined based on the Company's leverage ratio. The credit agreement is guaranteed by certain subsidiaries of the Company and is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the credit agreement. As of March 31, 2026, the Company was in compliance with all such covenants. The credit agreement terminates March 25, 2031. There was $90,000 outstanding under the credit facility at March 31, 2026.
Current wording
On March 25, 2026, the Company entered into a five-year, revolving, unsecured credit agreement that replaced a prior credit agreement that was entered into on August 31, 2022. The credit agreement allows for borrowings of up to $1,000,000 and allows for additional revolving credit commitments and/or term loan commitments, pursuant to the terms and subject to certain limitations set forth in the credit agreement. The credit agreement bears interest at a variable rate equal to, at the option of the Company, either (a) a rate based on adjusted Term Secured Overnight Financing Rate ("SOFR") rate or (b) an alternate base rate (the highest of (i) 0.0%, (ii) U.S. Bank's prime rate, (iii) the Federal Funds Rate plus 0.50% and (iv) a one month adjusted Term SOFR rate plus 1.0%), plus an applicable percentage in each case determined based on the Company's leverage ratio. The credit agreement is guaranteed by certain subsidiaries of the Company and is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the credit agreement. As of September 30, 2026, the Company was in compliance with all such covenants. The credit agreement terminates March 25, 2031. There was $85,000 and $40,000 outstanding under the credit facility at September 30, 2026 and June 30, 2026, respectively.
Previous wording
On July 18, 2025, the Company entered into an unsecured committed revolving line of credit facility with a commercial bank in the amount of $50,000, which bears interest at the prime rate less 1.0%. The line of credit expires on July 17, 2026. There was no balance outstanding at March 31, 2026.
Current wording
On July 18, 2025, the Company entered into an unsecured committed revolving line of credit facility with a commercial bank in the amount of $50,000, which bore interest at the prime rate less 1.0%. The line of credit expired on July 17, 2026. There was no balance outstanding at June 30, 2026.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Cash provided by operating activities for the first nine months of fiscal 2026 increased 46% compared to the same period last year primarily due to the change in deferred income taxes period over period. Cash from operations is primarily used to repay debt, to pay dividends, to repurchase stock, for capital expenditures, and for acquisitions.