Morgan Stanley cuts target for Jack Henry stock to USD 158.00

Published on 10/06/2026 at 07:10 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Morgan Stanley kept equal weight for Jack Henry stock on September 30, 2026. Fiscal 2026 fourth-quarter revenue rose 4.70 percent to USD 644.00 million.

JKHY, US4262811015, Illustration mit AI erstellt.

Jack Henry & Associates (US4262811015) faces a lower Morgan Stanley valuation marker after the bank cut its price target from USD 170.00 to USD 158.00 on September 30, 2026, while retaining an equal-weight rating, according to MarketBeat. The revised target puts the latest primary-market quote below Morgan Stanley's stated valuation level.

Revenue growth stays positive

Zacks reported that fiscal 2026 fourth-quarter revenue rose 4.70 percent year over year to USD 644.00 million. The same period produced earnings of USD 1.57 per share, exceeding the USD 1.44 consensus estimate by USD 0.13.

The comparison is constructive on sales but less favorable on profitability. GAAP operating income fell 12.20 percent year over year to USD 136.80 million in the fiscal 2026 fourth quarter, while the operating margin contracted to 21.20 percent from 25.30 percent, according to Zacks.

Fiscal 2027 outlook sets the test

For fiscal 2027, management expects GAAP revenue of USD 2.684 billion to USD 2.709 billion, equivalent to growth of 5.50 percent to 6.50 percent, with GAAP operating margin between 24.50 percent and 24.70 percent. The outlook also calls for GAAP earnings of USD 7.33 to USD 7.38 per share, as reported by Zacks.

That outlook matters because the latest annual figures show scale alongside a margin challenge. Jack Henry generated USD 2.5 billion of revenue and USD 502.8 million of net income in fiscal 2026, while operating cash flow reached USD 762.0 million. The company describes its business as financial technology for banks and credit unions and says it serves more than 7,200 clients, according to its investor-relations page.

Nasdaq quote and valuation range

At Nasdaq, JKHY was trading at USD 145.12 at 4:00 p.m. ET on October 5, 2026, while the prior session closed at USD 142.54. The company had a market capitalization of USD 10.3 billion, and its 52-week range extended from USD 121.04 to USD 193.39.