Is JKHY (Jack Henry & Associates, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, JKHY is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (0.00% vs ≤33% threshold), interest income ratio (1.17% vs ≤5% threshold), and cash & securities ratio (0.92% vs ≤33% threshold).

Jack Henry & Associates, Inc. is a leading provider of technology solutions and payment processing services for the US financial sector. Operating through brands like Jack Henry Banking and Symitar, the company delivers core data processing and transaction solutions to banks and credit unions of all sizes. For Muslim investors, JKHY represents a solid Halal investment opportunity in the technology sector. The stock successfully passes all four AAOIFI shariah screens, meaning its core business operations and financial structures align perfectly with Islamic finance principles. From a financial perspective, the company boasts an outstanding balance sheet with a 0.0% debt-to-market cap ratio, completely avoiding interest-bearing leverage. Additionally, its interest income is minimal at 1.17% of revenue, ensuring that non-compliant earnings remain well below the strict 5% threshold. While providing software to conventional banks is generally permissible, investors should continuously monitor the company's payment processing segment. Ensuring that future acquisitions or new service lines do not drift into direct lending or interest-based financial products will be key to maintaining its shariah-compliant status. Jack Henry & Associates, Inc. operates in the Technology sector under the Information Technology Services industry and is headquartered in Monett, MO, US. The company is led by CEO Gregory R. Adelson and employs approximately 7,170 people.

JKHY was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. JKHY passed 4 of these 4 screens.

Although JKHY passes all shariah screens, it does earn $27.8M in interest income (1.17% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $1.17 to purify the income.

JKHY was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.