Agilysys beats Q2 profit estimates on subscription revenue growth; hikes forecast

Agilysys

26/10/2026 20:14

Overview
US hospitality software provider's fiscal Q2 revenue rose 18%, beating analyst expectations
Adjusted EPS for fiscal Q2 beat consensus, rising to $0.67
Company raised full-year revenue and subscription growth guidance on strong sales momentum

Outlook
Agilysys raises full-year 2027 revenue guidance to $374 mln-$378 mln
Company now expects full-year subscription revenue growth of at least 34%
Agilysys expects full-year adjusted EBITDA to be 25% of revenue, up from 24% previously

Result Drivers
SUBSCRIPTION REVENUE - Co said Q2 revenue was driven by 32.6% year-over-year growth in subscription revenue
ONE-TIME PRODUCT SALES - Co said Q2 product revenue was higher than expected as hospitality industry increased investments in modern POS technology
SALES MOMENTUM - Co said record sales in Q2 kept total backlog at record levels despite strong implementation and delivery results

Company press release: ID:nBwbMfLFGa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$93.40 mln
$90.91 mln (8 Analysts)
Q2 Adjusted EPS
Beat
$0.67
$0.55 (8 Analysts)
Q2 Net Income
 
$13.20 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Agilysys Inc is $135.00, about 11.9% above its October 23 closing price of $120.69
The stock recently traded at 42 times the next 12-month earnings vs. a P/E of 40 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)