Top 5 Payment and IT Services Stocks for 2026 According to RBC Capital

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Jack Henry & Associates

Summary:

Investing.com -- As the payments and IT services sector looks to rebound from a challenging 2025, RBC Capital has identified top...

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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Spain stocks higher at close of trade; IBEX 35 up 1.13%

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Investing.com – Spain stocks were higher after the close on Thursday, as gains in the Consumer Goods, Telecoms & IT and Financial Services & Real Estate sectors led shares higher.

At the close in Madrid, the IBEX 35 rose 1.13% to hit a new all time high.

The best performers of the session on the IBEX 35 were Indra A (BME:IDR), which rose 4.41% or 2.02 points to trade at 47.78 at the close. Meanwhile, Amadeus IT (BME:AMA) added 2.62% or 1.62 points to end at 63.56 and Industria de Diseno Textil SA (BME:ITX) was up 2.55% or 1.40 points to 56.20 in late trade.

The worst performers of the session were Redeia Corporacion SA (BME:REDE), which fell 0.79% or 0.12 points to trade at 15.00 at the close. Repsol (BME:REP) declined 0.32% or 0.05 points to end at 15.40 and Telefonica (BME:TEF) was down 0.29% or 0.01 points to 3.48.

Rising stocks outnumbered declining ones on the Madrid Stock Exchange by 146 to 43 and 21 ended unchanged.

Shares in Industria de Diseno Textil SA (BME:ITX) rose to 5-year highs; gaining 2.55% or 1.40 to 56.20.

Gold Futures for February delivery was down 0.21% or 9.35 to $4,364.55 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in February rose 0.79% or 0.44 to hit $56.25 a barrel, while the February Brent oil contract rose 0.64% or 0.38 to trade at $60.06 a barrel.

EUR/USD was unchanged 0.14% to 1.17, while EUR/GBP unchanged 0.17% to 0.88.

The US Dollar Index Futures was up 0.12% at 98.12.

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Portugal stocks higher at close of trade; PSI up 0.71%

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Select Medical Holdings

Advanced Micro Devices

-3.84%

Investing.com – Portugal stocks were higher after the close on Thursday, as gains in the Industrials, Telecoms and Financials sectors led shares higher.

At the close in Lisbon, the PSI gained 0.71%.

The best performers of the session on the PSI were Mota Engil SGPS SA (ELI:MOTA), which rose 3.70% or 0.18 points to trade at 4.93 at the close. Meanwhile, CTT Correios de Portugal SA (ELI:CTT) added 1.78% or 0.13 points to end at 7.42 and Semapa (ELI:SEM) was up 1.43% or 0.24 points to 17.00 in late trade.

The worst performers of the session were Teixeira Duarte (ELI:TDSA), which unchanged 0.00% or 0.00 points to trade at 0.66 at the close. EDP Renovaveis (ELI:EDPR) added 0.09% or 0.01 points to end at 11.69 and Sonae SGPS SA (ELI:YSO) was 0.12% or 0.00 points to 1.60.

Rising stocks outnumbered declining ones on the Lisbon Stock Exchange by 21 to 3 and 6 ended unchanged.

Brent oil for February delivery was up 0.67% or 0.40 to $60.08 a barrel. Elsewhere in commodities trading, Crude oil for delivery in February rose 0.82% or 0.46 to hit $56.27 a barrel, while the February Gold Futures contract fell 0.07% or 2.90 to trade at $4,371.00 a troy ounce.

EUR/USD was unchanged 0.15% to 1.17, while EUR/GBP unchanged 0.16% to 0.88.

The US Dollar Index Futures was up 0.12% at 98.12.

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America's 3 Most Important Companies Are About to Get New Leadership. Trust the Process. — Barrons.com

Dow Jones Newswires

By Andy Serwer

The year end affords us an opportunity to step back and assess the past and wonder about the days ahead. As a somewhat arbitrary demarcation, ringing in a new year sometimes lacks drama — though not this year. Heading into 2026, we will be witnessing a changing of the guard at what are arguably America's three most important companies. (Not you, OpenAI.) I'm referring to leadership changes at Walmart, Berkshire Hathaway, and Apple.

The moves at these companies aren't symmetric. Each is embarking on a distinct changeover path, but the common denominator of resetting is unmistakable and momentous. On Feb. 1, Doug McMillon, CEO of Walmart since Feb. 1, 2014, will be handing the reins to John Furner, president and CEO of Walmart U.S. (They have succession down to the day at Walmart!) Meanwhile, Warren Buffett, who has been running Berkshire Hathaway forever (actually only since 1965 — slightly shorter than forever) will be turning over his responsibilities to Greg Abel, currently vice chairman of noninsurance operations, on New Year's Day.

As for Apple's Tim Cook, who has been CEO since Aug. 24, 2011, he isn't going anywhere — yet. But with the announced departure of some key Cook deputies — Chief Operating Officer Jeff Williams, general counsel Kate Adams, and head of government affairs Lisa Jackson, part of a continuum in a multiyear switching out of 60-plus-year-old top executives, or as an insider calls it, "maintaining the magic" — the 14 1/2 -year Cook era at Apple looks to be winding down.

Quibble with me if you like, but I'd argue that under the leadership of McMillon, Buffett, and Cook, these three companies have redefined how to do chicken right. They are models of efficiency, supply chain, profitability, and talent nurturing. All three have outperformed the market during their CEO tenures.

There are a few connections among them, especially Berkshire's home-run investment in Apple, probably Buffett's best stock investment ever in dollar terms, generating some $100 billion in pretax profits and with tens of billions more still held in a roughly $35 billion investment. This is the case, even though one could argue that Berkshire sold much of its Apple stock too soon, missing a strong recent run-up.

Speaking of missing an opportunity, Buffett once owned Walmart but sold his stake beginning in 2015, in the early days of McMillon's tenure. This is ironic since Buffett has chastised himself for missing Walmart early on. Make that later on, too, Warren. Even Oracles can't be perfect, as Buffett so often tells us.

As for Walmart and Apple, yes, the former sells Apple products, but that distribution channel is small potatoes compared with Apple's own digital and physical stores and mobile carriers. Also note that Walmart is one of few national retailers that doesn't accept Apple Pay; it wants its customers to use Walmart Pay.

Now let's take a look at some numbers. Simply put, these three CEOs have been wealth-creation beasts. And it isn't just Buffett, who's actually not No. 1 by a long shot. That honor goes to Tim Cook, who, when he became CEO, presided over a company with a mere $350 billion in market capitalization. Today, it's $4.1 trillion — or some $3.75 trillion more. Yes, you can argue that much of this was selling products that Steve Jobs developed, but talk about taking an operation to a whole other level. As for Buffett, Berkshire is worth some $1.1 trillion today, which is, of course, all Warren. Now consider Walmart. When McMillion became CEO, Walmart's market cap was $242 billion, compared with $920 billion today, or almost 3.8 times bigger. In total, the three CEOs have generated some $5.5 trillion of value.

As for the prognosis for these companies, note that at each of these well-oiled machines, succession is considered mission critical. Walmart is so good at this that Wall Street just assumes Furner will succeed — though you never really know. As for Buffett, there is some anxiety, as to be expected, over how able Abel will be. Again, who knows, but remember, this is really Buffett's biggest call ever.

Picking a new CEO is "the most important decision that you make," Buffett said to me five years ago. "It isn't what their IQ is. And it isn't even necessarily the top [person] in a given type of managerial skill, if they're the kind that will leave you tomorrow. You really want somebody that is devoted to Berkshire."

For Cook, who turned 65 on Nov. 1, there's still time. The betting for now is that John Ternus, 50, senior vice president of hardware engineering, will ultimately lead Apple. "We believe Cook is a hall-of-fame CEO, and he will be CEO for at least the next two years," says the ever-colorfully attired Dan Ives of Wedbush Securities. Ives says that Cook will want to see through implementation of Apple's artificial-intelligence strategy.

It's also worth noting that Ternus, Abel, and Furner have been at their companies 25, 27, and 33 years, respectively. Talk about vetting.

Should you sell your Apple, Walmart, or Berkshire stock? Recall that some suggested as much when Tim Cook took over at Apple. Had you done that with, say, a $100,000 stake and invested it in the S&P 500 index instead, you would be looking at $1.4 million-plus opportunity loss. (Your Apple stock would be worth $2,040,270 today; your S&P 500 investment only $578,850.)

To paraphrase Coach Nick Saban: When it comes to these three American icons, it probably pays to trust the process.

Write to Andy Serwer at andy.serwer@barrons.com. Follow him on X and subscribe to his At Barron's podcast.

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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Germany stocks higher at close of trade; DAX up 0.99%

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SmartStop Self Storage Reit Corp.

Investing.com – Germany stocks were higher after the close on Thursday, as gains in the Industrials, Financial Services and Food & Beverages sectors led shares higher.

At the close in Frankfurt, the DAX added 0.99%, while the MDAX index climbed 1.21%, and the TecDAX index added 0.77%.

The best performers of the session on the DAX were Siemens Energy AG (ETR:ENR1n), which rose 3.50% or 4.05 points to trade at 119.60 at the close. Meanwhile, Deutsche Bank AG NA O.N. (ETR:DBKGn) added 3.24% or 1.02 points to end at 32.67 and Airbus Group SE (ETR:AIRG) was up 1.95% or 3.72 points to 194.12 in late trade.

The worst performers of the session were Mercedes Benz Group AG (ETR:MBGn), which fell 0.67% or 0.40 points to trade at 59.68 at the close. BASF SE NA O.N. (ETR:BASFN) declined 0.63% or 0.28 points to end at 44.04 and Beiersdorf AG O.N. (ETR:BEIG) was down 0.57% or 0.54 points to 94.28.

The top performers on the MDAX were Rational AG (ETR:RAAG) which rose 5.16% to 662.00, Kion Group AG (ETR:KGX) which was up 3.99% to settle at 66.50 and Hochtief AG (ETR:HOTG) which gained 3.44% to close at 331.00.

The worst performers were Lanxess AG (ETR:LXSG) which was down 1.22% to 17.04 in late trade, Nordex SE O.N. (ETR:NDXG) which lost 0.76% to settle at 28.68 and K+S AG (ETR:SDFGn) which was down 0.73% to 12.18 at the close.

The top performers on the TecDAX were PNE Wind AG (ETR:PNEGn) which rose 4.09% to 10.18, United Internet AG NA (ETR:UTDI) which was up 3.22% to settle at 26.28 and Nemetschek AG O.N. (ETR:NEKG) which gained 3.05% to close at 94.55.

The worst performers were SMA Solar Technology AG (ETR:S92G) which was down 4.51% to 32.64 in late trade, Eckert & Ziegler AG O.N. (ETR:EUZG) which lost 1.16% to settle at 14.48 and Nordex SE O.N. (ETR:NDXG) which was down 0.76% to 28.68 at the close.

Rising stocks outnumbered declining ones on the Frankfurt Stock Exchange by 409 to 220 and 34 ended unchanged.

The DAX volatility index, which measures the implied volatility of DAX options, was up 2.97% to 15.46.

Gold Futures for February delivery was up 0.14% or 6.00 to $4,379.90 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in February rose 0.84% or 0.47 to hit $56.28 a barrel, while the February Brent oil contract rose 0.69% or 0.41 to trade at $60.09 a barrel.

EUR/USD was unchanged 0.14% to 1.17, while EUR/GBP unchanged 0.16% to 0.88.

The US Dollar Index Futures was up 0.11% at 98.11.

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Sweden stocks higher at close of trade; OMX Stockholm 30 up 1.18%

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Meta Platforms

+0.18%

Advanced Micro Devices

Investing.com – Sweden stocks were higher after the close on Thursday, as gains in the Industrials, Financials and Basic Materials sectors led shares higher.

At the close in Stockholm, the OMX Stockholm 30 rose 1.18%.

The best performers of the session on the OMX Stockholm 30 were Sandvik AB (ST:SAND), which rose 3.80% or 10.80 points to trade at 295.10 at the close. Meanwhile, H & M Hennes & Mauritz AB B (ST:HMb) added 3.64% or 6.60 points to end at 187.80 and EQT AB (ST:EQTAB) was up 3.51% or 11.70 points to 345.00 in late trade.

The worst performers of the session were Evolution AB (ST:EVOG), which fell 1.73% or 11.00 points to trade at 624.00 at the close. Essity AB B (ST:ESSITYb) declined 0.49% or 1.30 points to end at 266.10 and AstraZeneca PLC (ST:AZN) was down 0.27% or 4.50 points to 1,684.50.

Rising stocks outnumbered declining ones on the Stockholm Stock Exchange by 430 to 303 and 74 ended unchanged.

Shares in Sandvik AB (ST:SAND) rose to all time highs; up 3.80% or 10.80 to 295.10. Shares in H & M Hennes & Mauritz AB B (ST:HMb) rose to 52-week highs; up 3.64% or 6.60 to 187.80.

Crude oil for February delivery was up 0.84% or 0.47 to $56.28 a barrel. Elsewhere in commodities trading, Brent oil for delivery in February rose 0.67% or 0.40 to hit $60.08 a barrel, while the February Gold Futures contract rose 0.50% or 22.05 to trade at $4,395.95 a troy ounce.

EUR/SEK was down 0.25% to 10.89, while USD/SEK fell 0.15% to 9.28.

The US Dollar Index Futures was up 0.07% at 98.07.

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Redwire stock soars after securing major spacecraft docking deal

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Advanced Micro Devices

Investing.com -- Redwire Corporation (NYSE:RDW) stock surged 11% on Thursday after the space technology company announced an eight-figure agreement with European aerospace firm The Exploration Company (TEC) to provide advanced docking systems for spacecraft.

Under the deal, Redwire will supply two International Docking System Standard (IDSS) compliant docking systems for TEC’s flagship spacecraft, Nyx. The systems, known as International Berthing and Docking Mechanism (IBDM), will enable autonomous rendezvous and docking capabilities for the European spacecraft.

"This agreement marks a significant step in supporting Europe’s fast-growing commercial space sector. We are thrilled to contribute to one of the most exciting space programs in Europe," said Marc Dielissen, General Manager of Redwire Belgium.

The IBDM technology was developed in Belgium with international partners and the European Space Agency. It supports both berthing and autonomous docking operations as part of a standardized interface architecture. Redwire’s offices in Belgium and Poland are already working on a similar system for the lunar Gateway’s International Habitat.

Najwa Naimy, Chief Program Officer at The Exploration Company, noted that the partnership aligns with their mission to build "the most affordable and sustainable vehicle for space cargo transit."

The deal represents a strategic win for Redwire as it expands its footprint in the European space sector and positions its technology for future missions requiring standardized docking capabilities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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