TLDR
- Agilysys stock surged 15% to $80.41 on Tuesday after beating Q4 earnings estimates by $0.13
- The company posted its 17th consecutive quarter of record revenue, with subscription sales up 24% year over year
- FY2027 revenue guidance of $365M–$370M came in above the analyst consensus of $363.59M
- Needham reiterated a Buy with a $120 price target; Oppenheimer raised its target to $100
- The Marriott International PMS deal is expected to start contributing more meaningfully to financials in FY2027
Agilysys stock hit $80.41 on Tuesday, up 15% on the day, after the company reported fiscal Q4 results that topped Wall Street expectations across the board.
EPS came in at $0.63, beating the consensus estimate of $0.50 by $0.13. Revenue reached $82.95 million, above the $81.56 million analysts had forecast, and up 11.7% year over year.
That marks the 17th consecutive quarter of record revenue for the hospitality software company.
Subscription revenue growth came in at 24% for the quarter. For FY2027, management guided for subscription growth of “at least” 30%, which would be the third straight year of acceleration.
Total FY2027 revenue guidance was set at $365M–$370M, ahead of the $363.59M consensus.
Analysts Respond
Needham & Company reiterated its Buy rating and kept a $120 price target on the stock — implying roughly 71% upside from current levels.
Oppenheimer analyst Brian Schwartz raised his price target to $100 from $90, keeping an Outperform rating. He described the business as entering a “noticeable uptrend” in 2026 that should continue through FY2027.
“If the company keeps beating-and-guiding above, similar to F4Q26, then the stock should keep working,” Schwartz wrote.
BTIG analysts, who hold a Neutral rating with no price target, credited the stock move almost entirely to management’s “impressive” subscription guidance. They said they continue to like the story but are waiting for a better entry point.
The broader analyst picture is mixed. Four analysts have a Buy rating, two have a Hold, and one has a Sell. The average consensus target sits at $131.40.
Marriott Deal Gains Traction
Wall Street is paying close attention to Agilysys’ deal with Marriott International to deploy its cloud-native property management system across luxury, premium, and select-service properties in the U.S. and Canada.
The deal was first announced in late 2022. Oppenheimer now says full-year guidance implies it should “start contributing more meaningfully” to financials.
CEO Ramesh Srinivasan confirmed on Monday’s earnings call that “the Marriott PMS project continues to make good progress and is on plan.”
BTIG’s base case models subscription revenue growth of 23%, 22%, and 20% in FY2027, FY2028, and FY2029 respectively, with the Marriott deal adding an extra 7%, 11%, and 9% on top of those figures.
Tuesday’s rally marks Agilysys’ best single-day performance since October 28, 2025. The stock had fallen roughly 15% over the prior 12 months, hit by the broader software selloff driven by AI disruption fears.
Prior to Tuesday’s move, the stock’s 52-week range ran from $61.50 to $145.25, with a 200-day moving average of $94.99.
Institutional investors hold 88% of the stock, with several funds adding to positions in recent quarters.
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