Agilysys (NASDAQ:AGYS) Releases Earnings Results, Beats Estimates By $0.09 EPS

Agilysys (NASDAQ:AGYS) issued its quarterly earnings results on Monday. The software maker reported $0.49 earnings per share for the quarter, topping analysts’ consensus estimates of $0.40 by $0.09, FiscalAI reports. The firm had revenue of $87.68 million for the quarter, compared to analysts’ expectations of $85.97 million. Agilysys had a return on equity of 11.07% and a net margin of 12.15%.Agilysys’s revenue was up 14.3% on a year-over-year basis. During the same quarter last year, the business posted $0.33 EPS.

Here are the key takeaways from Agilysys’ conference call:

• Agilysys raised FY2027 revenue guidance to $368 million–$373 million from $365 million–$370 million and increased its subscription-revenue growth outlook to at least 32%, citing stronger sales and faster backlog conversion.
• Q1 revenue rose 14.3% year over year to a record $87.7 million, while subscription revenue grew 26.1% and adjusted EBITDA increased to $18.3 million, or 20.8% of revenue. Management maintained its 24% full-year adjusted EBITDA margin target and expects to approach 30% in Q4.
• Sales momentum remained strong, including three major seven-figure, multi-product wins in casino gaming and Australia, record six-month sales, and a record backlog. Management highlighted high win rates, increasing cross-sell activity, and improving implementation efficiency.
• The company is advancing more than 30 AI-enabled features, with several entering customer pilots, while AI-native Revenue Intelligence and CRS modules remain on track for initial beta deployments later this fiscal year. Management expects AI to strengthen the broader hospitality software ecosystem without requiring major incremental investment.
• The Marriott PMS rollout is progressing according to plan, but management cautioned that significant work remains as more complex full-service and premium properties begin implementation, retaining an estimated completion window of roughly 18–24 months.

Agilysys Price Performance

Shares of NASDAQ AGYS opened at $103.24 on Tuesday. The business’s 50-day moving average price is $95.10 and its two-hundred day moving average price is $84.93. Agilysys has a one year low of $61.50 and a one year high of $145.25. The company has a market capitalization of $2.91 billion, a P/E ratio of 75.91 and a beta of 0.37.

Hedge Funds Weigh In On Agilysys

Hedge funds have recently added to or reduced their stakes in the company. Advisors Asset Management Inc. increased its position in Agilysys by 30.1% during the first quarter. Advisors Asset Management Inc. now owns 688 shares of the software maker’s stock worth $50,000 after buying an additional 159 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Agilysys by 4.4% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 13,395 shares of the software maker’s stock worth $972,000 after buying an additional 569 shares during the last quarter. Goldman Sachs Group Inc. lifted its position in shares of Agilysys by 125.0% in the first quarter. Goldman Sachs Group Inc. now owns 331,953 shares of the software maker’s stock worth $24,080,000 after buying an additional 184,402 shares during the last quarter. Jane Street Group LLC increased its holdings in shares of Agilysys by 1,025.2% during the 1st quarter. Jane Street Group LLC now owns 37,750 shares of the software maker’s stock valued at $2,738,000 after acquiring an additional 34,395 shares during the last quarter. Finally, Cetera Investment Advisers bought a new position in shares of Agilysys in the 2nd quarter valued at approximately $231,000. Institutional investors and hedge funds own 88.00% of the company’s stock.

Key Stories Impacting Agilysys

Here are the key news stories impacting Agilysys this week:

• Positive Sentiment: Quarterly results exceeded expectations. Agilysys reported adjusted earnings of $0.49 per share versus the $0.40 consensus estimate, while revenue reached a record $87.7 million, above expectations of $85.97 million. Revenue increased 14.3% year over year, and earnings rose from $0.33 per share in the prior-year quarter. Agilysys Tops Q1 Earnings and Revenue Estimates
• Positive Sentiment: Profitability and financial strength improved. Gross profit increased to approximately $55.7 million and operating profit more than doubled to $9.7 million. The company ended the quarter with $123.7 million in cash, while capital spending remained modest at $0.5 million. Agilysys Announces Record Fiscal 2027 First-Quarter Revenue
• Positive Sentiment: Full-year revenue guidance was raised or set above expectations. Agilysys projected fiscal 2027 revenue of $368 million to $373 million, slightly above the $367.7 million consensus estimate. This suggests management remains confident in demand for its hospitality software and recurring-revenue business. Agilysys Earns Buy Rating on Strong Execution and Lifted Guidance
• Positive Sentiment: Analyst sentiment remains supportive. William Blair analyst Stephen Sheldon maintained a Buy rating, citing strong execution, improved guidance and potential growth upside that may not yet be reflected in the valuation.
• Neutral Sentiment: Institutional positioning was mixed, with 121 investors adding shares and 129 reducing holdings in the latest reported periods. Reported insider activity was predominantly purchases, but the data comes from third-party sources and may not reflect current trading.
• Negative Sentiment: Valuation remains a risk. AGYS trades at a high P/E ratio of roughly 75.9, leaving the stock sensitive to any slowdown in growth or future earnings disappointments. The reported analyst price-target median of $110 also implies only limited upside from recent levels.

Analyst Upgrades and Downgrades

A number of analysts have commented on the stock. Cantor Fitzgerald reaffirmed an “overweight” rating on shares of Agilysys in a research note on Wednesday, June 17th. Zacks Research raised shares of Agilysys from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, June 3rd. Weiss Ratings upgraded shares of Agilysys from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, July 13th. Oppenheimer upped their price target on shares of Agilysys from $90.00 to $100.00 and gave the company an “outperform” rating in a research report on Tuesday, May 19th. Finally, Piper Sandler began coverage on shares of Agilysys in a research note on Tuesday, June 2nd. They issued an “overweight” rating and a $110.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, Agilysys currently has an average rating of “Moderate Buy” and a consensus price target of $116.00.

About Agilysys

Agilysys, Inc is a publicly traded technology company (NASDAQ: AGYS) that specializes in providing software and services to the hospitality industry. The company’s solutions span property management, point-of-sale, inventory and procurement, workforce management, analytics and mobile guest engagement. These offerings are designed to streamline hotel and resort operations, enhance guest experiences and improve financial performance for clients across the lodging, gaming, cruise, senior living and higher-education markets.

Agilysys delivers its portfolio through both cloud-based and on-premises deployments, enabling hoteliers and hospitality operators to select the infrastructure model that best aligns with their operational requirements and IT strategies.