Investing.com -- As the payments and IT services sector looks to rebound from a challenging 2025, RBC Capital has identified top performers positioned for growth in 2026.
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With only 11 of 30 stocks in positive territory this year, analysts are taking a barbell approach, focusing on companies offering durability, visibility, and accelerating growth potential.
1. Jack Henry & Associates (JKHY)
Jack Henry stands as RBC’s top pick, poised to directly benefit from Fiserv’s core consolidation strategy. This market shift could drive more than 100 additional core wins over the next 2-3 years, potentially adding $60-$80 million in incremental core revenues—representing 8-11% growth above FY25 levels.
The company has increased R&D expenditures to 14-15% in recent years, resulting in record bookings in five of the last eight quarters. With approximately 77% of clients already migrated to the cloud (driving twice the revenue over contract terms), and expansion into SMB markets through Tap2Local and Rapid Transfers, JKHY offers strong growth visibility.
In recent news, Jack Henry & Associates reported first-quarter 2026 earnings and revenue that surpassed analyst expectations. The company also received rating upgrades from several firms, including RBC Capital and Raymond James, and announced a quarterly dividend of $.58 per share.
2. Visa/Mastercard (V/MA)
These payment networks represent RBC’s top large-cap choices, offering consistent exposure to global digital payment growth with durability during uncertain economic conditions. US purchase volume growth remains in the mid-single digit range, averaging 310 basis points (Visa) and 350 basis points (Mastercard) above US retail sales growth since Q1 2023.
Value-added services now contribute approximately 52% of Visa’s growth and 55% of Mastercard’s, up significantly from 2023 levels.
Visa specifically should benefit from the FIFA World Cup and Winter Olympics in 2026, where its sponsorship position enables enhanced marketing and advisory services.
Visa recently received a stock rating upgrade to Buy from BofA Securities and has advanced its work in digital currencies by expanding USDC stablecoin settlement capabilities.
Mastercard reported third-quarter 2025 earnings and revenue that beat expectations, and its board approved a 14% increase to its quarterly dividend alongside a new $14 billion share repurchase program.
3. Block (XYZ)
As RBC’s top growth pick, Block is positioned to accelerate after recent challenges. Cash App’s improving monetization through commerce initiatives (Cash App Card/Pay/BNPL) and lending (Cash App Borrow) is driving higher gross profit per monthly active user.
The company’s Buy Now Pay Later service has scaled to $38.8 billion in annualized GMV, while Borrow has reached $22 billion in annualized originations. Square’s revamped go-to-market strategy shows early success with new volume added accelerating to approximately 15% in FY25.
Block expects to achieve and sustain a "Rule of 40" growth profile with adjusted operating income margins remaining above 20%.
Block has received continued positive sentiment from analysts, with firms like TD Cowen and UBS reiterating Buy ratings on the company. The company also expanded its partnership with inventory management system Thrive to better serve retail clients.
4. NCR Voyix (VYX)
RBC’s top small-cap selection is completing its transition to a software platform and services company with the ramping of its ODM contract in Q1 2026.
This shift replaces approximately $670 million of volatile revenue at 3.7% margins with steady annual revenue of about $100 million at 25% margins.
Three key opportunities could accelerate growth: platform conversion of top clients (with 3-4x revenue lift), full-service payments monetization across $1.4 trillion in transaction volume, and gateway fees on approximately 17 billion annual transactions currently monetized by other providers.
5. SS&C Technologies (SSNC)
Rounding out the top five is SS&C, RBC’s top GARP (Growth at Reasonable Price) pick. The company’s organic growth has solidified into the mid-single digit range in FY25, averaging 4.6% in the first nine months.
The lapping of the Battea acquisition should add approximately 20 basis points to organic growth in both Q4 2025 and FY26, while the Calastone acquisition will contribute an additional 10 basis points to FY26 growth.
With 85% of total revenues coming from recurring financial services that grew 5.5% organically in the first half of FY25, SSNC offers sustainable growth at a valuation near its five-year average.
SS&C Technologies completed its acquisition of Curo Fund Services, a South African fund administrator, adding approximately R3 trillion in administered assets. The company also launched a new AI agent catalogue for financial services firms and secured a license to expand its wealth management services across the European Union.
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