Agilysys, Inc. (Nasdaq: AGYS) has updated its financial guidance for the full fiscal year 2026, raising revenue expectations while maintaining targets for operational profitability.
Equity Analyst Commentary
Equity Analyst Commentary Market analysts have noted the divergence between top-line growth and quarterly earnings. While revenue exceeded targets, the adjusted EPS of $0.42 missed the estimated $0.46. Firms including Needham and Oppenheimer maintain positive ratings, citing long-term growth in subscription bookings. Conversely, Zacks Equity Research maintains a Hold ranking, highlighting the impact of increased operational expenses on near-term margins.
Guidance & Outlook
The updated guidance for fiscal year 2026 includes:
- Total Revenue: Raised to a range of $315 million to $318 million.
- Subscription Revenue: Projected growth of approximately 29% year-over-year.
- Profitability: Adjusted EBITDA is expected to remain at approximately 20% of total revenue.
Performance Summary
Agilysys shares moved 2.4% lower today. Latest results show revenue of $79.3 million, marking a 16.5% year-over-year increase. Subscription segments showed expansion, while net profit decreased slightly to $3.9 million. The company maintains an upward revenue revision for the full year.
