--- title: "Why Agilysys Stock Rallied Today" type: "News" locale: "en" url: "https://longbridge.com/en/news/286975134.md" description: "Agilysys' stock rose following strong quarterly growth, with total net revenue increasing 11.7% to $82.9 million. Subscription revenue grew 24.1%, contributing to 65.5% of total revenue. The company anticipates at least 30% subscription revenue growth in fiscal 2027, driven by AI initiatives that improved profitability and gross margin to 64.4%. CEO Ramesh Srinivasan highlighted record sales and customer retention, positioning Agilysys for another successful year." datetime: "2026-05-19T23:05:15.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286975134.md) - [en](https://longbridge.com/en/news/286975134.md) - [zh-HK](https://longbridge.com/zh-HK/news/286975134.md) --- # Why Agilysys Stock Rallied Today ## Key Points - Agilysys' earnings are rising at an impressive clip. - Management sees subscription revenue growth of at least 30% in the year ahead. - 10 stocks we like better than Agilysys › Shares of **Agilysys** (NASDAQ: AGYS) rose on Tuesday after the hospitality software provider's strong quarterly growth metrics assuaged investors' concerns regarding potential disruption from artificial intelligence (AI). Image source: Getty Images. _**Will AI create the world's first trillionaire?** Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. **Continue »**_ ## Solid sales and profit gains Agilysys' total net revenue grew 11.7% year over year to $82.9 million in its fiscal 2026 fourth quarter ended March 31. The software specialist's recurring revenue, which includes subscription and maintenance charges, climbed 18% to $54.4 million and now accounts for 65.5% of total net revenue. Investors prize recurring revenue streams due to their predictability. Subscription revenue growth was particularly strong at 24.1%. "Fiscal 2026 was an outstanding year across all crucial major metrics, including record-shattering sales and world-class customer retention levels, which have positioned us well for another record year in fiscal 2027," CEO Ramesh Srinivasan said. Rather than a threat, Agilysys sees AI as a catalyst for improved profitability. "Sweeping AI-related changes across the entire organization, especially in R&D \[research and development\], are helping us to improve operating leverage across several business areas and increase the pace of competitive product differentiation of our hospitality-focused software solution ecosystem," Srinivasan said. These AI-powered initiatives helped to drive the company's gross margin up to 64.4% from 60.7% in the year-ago quarter. Agilysys' adjusted earnings, in turn, jumped 17% to $0.63 per share. ## An upbeat forecast Management guided for full-year revenue of $365 million to $370 million in fiscal 2027, with subscription revenue growth of at least 30% and continued margin expansion. "The sales momentum throughout the fiscal year has carried us into fiscal 2027 well-positioned to achieve another year of record revenue and profitability levels," chief financial officer Dave Wood said. ## Should you buy stock in Agilysys right now? Before you buy stock in Agilysys, consider this: The _Motley Fool Stock Advisor_ analyst team just identified what they believe are the **10 best stocks** for investors to buy now… and Agilysys wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when **Netflix** made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, **you’d have $483,476**!\* Or when **Nvidia** made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, **you’d have $1,362,941**!\* Now, it’s worth noting _Stock Advisor’s_ total average return is 998% — a market-crushing outperformance compared to 207% for the S&P 500. **Don't miss the latest top 10 list, available with _Stock Advisor_, and join an investing community built by individual investors for individual investors.** **See the 10 stocks »** _\*Stock Advisor returns as of May 19, 2026._ _Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy._ The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. ### Related Stocks - [AGYS.US](https://longbridge.com/en/quote/AGYS.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [INTC.US](https://longbridge.com/en/quote/INTC.US.md) - [NFLX.US](https://longbridge.com/en/quote/NFLX.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [NDAQ.US](https://longbridge.com/en/quote/NDAQ.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [Agilysys Q4 revenue rises on subscription growth](https://longbridge.com/en/news/286814791.md) - [A Look At Agilysys (AGYS) Valuation As AI-Powered Hospitality Solutions Gain Customer Traction](https://longbridge.com/en/news/286784886.md) - [Analyst Reaffirms Buy on Agilysys, Maintains $120 Price Target Amid Strong Growth and Margin Outlook](https://longbridge.com/en/news/286884474.md) - [Agilysys Announces 17th Consecutive Record Revenue Quarter of $82.9M and Full Year Record Revenue of $319.3M | AGYS Stock News](https://longbridge.com/en/news/286813236.md) - [Agilysys rallies 15%: why AI fears are fading for software](https://longbridge.com/en/news/286953147.md)