Aug 19 (Reuters) - Jack Henry reported a 26%

jump in fourth-quarter profit on Tuesday, buoyed by robust

demand for its banking technology offerings.

While heavy hitters such as JPMorgan Chase ( JPM ) have

poured billions into developing their infrastructure, small- and

mid-sized financial institutions turn to the likes of Jack Henry

for tech modernization.

Technology is crucial for banking firms to meet the evolving

needs of their account holders and to stay competitive with

their larger rivals.

Monett, Missouri-based Jack Henry provides technology and

payment processing services to banks and credit unions.

Analysts said the company's narrow focus on bank tech has

allowed it to maintain a competitive advantage against larger

peers such as Fiserv ( FI ) and FIS.

"Our strong fourth-quarter sales wins for core,

complementary and payment solutions, along with our ongoing

success winning larger financial institutions and maintaining a

very healthy pipeline for fiscal year 2026, demonstrate the

continued strength in technology spending," Jack Henry CEO Greg

Adelson said.

The company's fourth-quarter revenue jumped 9.9% to $615.4

million from a year ago.

Profit rose to $127.6 million, or $1.75 per share, in the

three months ended June 30, compared with $101 million, or

$1.38, a year earlier.

Jack Henry expects its fiscal 2026 profit per share to be

between $6.32 and $6.44. It projected annual revenue of $2.48

billion to $2.50 billion.

FEES BOOST

Jack Henry's deconversion revenue roughly tripled to $20.5

million in the fourth quarter from a year earlier, underscoring

an uptick in banking M&A activity.

Bulk of the deconversion revenue, or one-time contract

termination fee, is generated when one of Jack Henry's clients

agrees to be acquired by another financial institution.

Such fees tend to be volatile and tied closely with the

banking cycle.

In recent years, Jack Henry has had to contend with

fluctuations on the deconversion revenue front as the pandemic

and the regional banking crisis stalled M&A activity.