Jack Henry & Associates Inc (JKHY) · Oct 29, 2026 · Guidance
Guidance raised — FY27 deconversion revenue $30.0M vs prior $23.0M guide
Jack Henry’s guidance update lifts FY27 deconversion revenue to $30M, but the non-core, client-driven item leaves its operating growth story unchanged.
Jack Henry is modernizing its installed-base banking software business around cloud infrastructure, digital banking, payments, AI, and small-business tools as banks and credit unions increase technology spending in those areas.
The estimate was raised, but this is not a core-demand signal. First-quarter deconversion revenue was $17.9 million, and the fiscal 2027 estimate is now $30.0 million. The prior fiscal 2027 company guide was $23 million, so the update adds $7 million to reported revenue expectations.
| Metric | Q1 FY27 actual | FY27 estimate | Prior FY27 guide |
|---|---|---|---|
| Deconversion revenue (Press release) | $17.9M | $30.0M | $23.0M |
The business read-through is limited because the revenue is largely outside Jack Henry’s control. Deconversions typically occur when a client is acquired by another financial institution, ending its Jack Henry contract; the company excludes the revenue from non-GAAP reporting because it does not reflect ongoing operations. 〔0〕 That makes the higher estimate a modest accounting and reported-revenue positive, not evidence that the cloud, payments, or SMB strategy is accelerating.
This is partly new rather than a surprise to the core story. The existence of a fiscal 2027 deconversion assumption was already disclosed in August; today’s filing mainly updates the magnitude after an unusually large first-quarter contribution. The cleanest benchmark is therefore the company’s prior $23 million guide, not an analyst consensus for this unpredictable line item.
Bottom line: The guidance raise is mildly positive for reported revenue, but it barely changes Jack Henry’s operating narrative because deconversion revenue is non-core and excluded from adjusted results.ï
Q1 earnings report, November 3
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