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

Overview

• US hospitality software provider's fiscal Q1 revenue rose 14% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Company raised full-year revenue and subscription growth guidance

Outlook

• Agilysys raises fiscal 2027 total revenue guidance to $368 mln-$373 mln

• Company increases subscription revenue growth guidance to at least 32% for fiscal 2027

• Agilysys maintains adjusted EBITDA guidance at 24% of revenue for fiscal 2027

Result Drivers

• SUBSCRIPTION GROWTH - Co said 26% yr/yr increase in subscription revenue was a key driver of Q1 results

• AI-ENABLED SOLUTIONS - Co said adoption of AI-powered features contributed to sales and adoption results

• SALES MOMENTUM - Co said record Q1 sales period and project implementation progress drove backlog to record highs

Company press release: ID:nBwTtTgXa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "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 $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 vs. a P/E of 33 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.)