Wells Fargo has moved Jack Henry & Associates (NASDAQ: JKHY) to an Overweight rating from Equal Weight and raised its 12-month price target to $196.00 from $181.00. The bank also placed Jack Henry among its internal "Fab 5" fintech picks, replacing Adyen, reflecting heightened confidence in the companys revenue trajectory as it approaches fiscal 2027.
The analyst case centers on what Wells Fargo describes as a "trifecta" of wins: core banking, digital capabilities and payments solutions. Wells Fargo expects that a heavier mix of these offerings, combined with firmer renewal pricing, small and medium-sized business initiatives and improving card trends, will drive revenue acceleration. The firm notes that Jack Henry has delivered solid top-line momentum recently, with revenue growth of 8.41% over the last twelve months.
Wells Fargos internal model places its fiscal 2027 revenue estimate about 80 basis points ahead of consensus. Looking further out, the bank sees the potential for fiscal 2028 upside if Jack Henry is able to convert market share from a challenged competitor. Wells Fargo suggests that such share gains could trigger further revenue acceleration while the broader Street still models relative stability.
Supporting the bullish view, InvestingPro data cited by the analyst shows Jack Henry with a Piotroski Score of 9, a metric the note describes as indicating strong fundamental financial health that could underpin expansion plans. The research team also pushed back on recent investor concerns tied to artificial intelligence themes, arguing that Jack Henrys revenue depends on accounts and transactions rather than per-seat licensing models that have been central to some AI-related selling pressures.
Market reaction has been notable: InvestingPro data referenced in the note shows the stock declined 8.16% over the prior week, and technical indicators such as the relative strength index suggest the shares have moved into oversold territory. Wells Fargo expects continued opportunities to capture share following competitor missteps.
Wells Fargo highlighted Jack Henrys market footprint as part of its case, noting that the company provides core banking systems to roughly 24% of banks and 48% of credit unions with assets above $1 billion. The bank anticipates an uptick in requests for proposals (RFPs) ahead of the companys fiscal year end in June, which it believes could translate into deals closed in fiscal 2027 and contribute revenue tailwinds in fiscal 2028. That anticipated pipeline impact could materialize even if Jack Henrys historical win rate, currently cited at about 50%, does not materially improve.
From a valuation standpoint, Jack Henry carries a market capitalization of $11.31 billion and a PEG ratio of 0.87, metrics Wells Fargo interprets as positioning the company well for the projected growth profile. The note recommends further detail is available in the Pro Research Report on InvestingPro for those seeking a deeper financial review.
Recent company results provide context for the analyst upgrades. Jack Henry reported fiscal 2026 second-quarter results that exceeded expectations: adjusted earnings per share of $1.72 versus a forecast of $1.42, a positive surprise of 21.13%. Revenue for the quarter was $619.33 million, beating the consensus view of $609.1 million. The board also approved a 6% increase to the quarterly dividend, raising it to $0.61 per share. That dividend is scheduled to be payable on March 25, 2026, to shareholders of record as of March 5, 2026.
Following the fiscal Q2 results, investment firm Baird upgraded its rating on Jack Henry from Neutral to Outperform, citing strong execution and better-than-expected outcomes in revenue and margins. Baird also lifted its price target to $205.00 from $200.00.
Collectively, the Wells Fargo and Baird notes underscore a convergence of analyst views that emphasize operational execution, a robust revenue mix and near-term opportunities for market share gains, while also identifying recent share-price weakness driven by thematic selling as a potential entry point for investors evaluating Jack Henrys outlook.
Note: This article summarizes analyst commentary and company-reported financial results as described above. It does not provide investment advice.