Agilysys lifts FY revenue, subscription growth outlook after Q1 results beat

The current average analyst rating on the shares is "buy," with 7 "strong buy" or "buy" ratings, 1 "hold" rating and no "sell" or "strong sell" ratings.

The average consensus recommendation for the software peer group is "buy."

Wall Street's median 12-month price target for Agilysys Inc is $128.32, about 30.2% above its July 24 closing price of $98.54.

The stock recently traded at 37 times the next 12-month earnings, versus a P/E of 33 three months ago.

The company said a 26% year-over-year increase in subscription revenue was a key driver of first-quarter results.

Agilysys also said adoption of AI-powered features contributed to sales and adoption results. It added that a record first-quarter sales period and project implementation progress drove backlog to record highs.

Agilysys raised its full-year revenue and subscription growth guidance. The company said it now expects fiscal 2027 total revenue of $368 mln-$373 mln.

It also increased subscription revenue growth guidance to at least 32% for fiscal 2027, while maintaining adjusted EBITDA guidance at 24% of revenue for fiscal 2027.

US hospitality software provider Agilysys said fiscal first-quarter revenue rose 14% year over year, beating analyst expectations. Adjusted earnings per share for the fiscal first quarter also beat analyst expectations.