<div id="readability-page-1"><div> <h2>Key Points</h2><ul><li>Agilysys' earnings are rising at an impressive clip.</li><li>Management sees subscription revenue growth of at least 30% in the year ahead.</li><li>10 stocks we like better than Agilysys ›</li></ul>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).<img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg3MTAyNC9ob3RlbC1zdG9ja3MtZ2V0dHlpbWFnZXMtMTQ0ODUwNjEwMC0xODAxeDEyMDEtMDc1YmM2MC5qcGcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-dXJsPWh0dHBzOi8vZy5mb29sY2RuLmNvbS9lZGl0b3JpYWwvaW1hZ2VzLzg3MTAyNC9ob3RlbC1zdG9ja3MtZ2V0dHlpbWFnZXMtMTQ0ODUwNjEwMC0xODAxeDEyMDEtMDc1YmM2MC5qcGcmdz03MDA"/>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 &#34;Indispensable Monopoly&#34; providing the critical technology Nvidia and Intel both need. Continue » <h2>Solid sales and profit gains</h2>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%.&#34;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,&#34; CEO Ramesh Srinivasan said.Rather than a threat, Agilysys sees AI as a catalyst for improved profitability.&#34;Sweeping AI-related changes across the entire organization, especially in R&amp;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,&#34; 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. <h2>An upbeat forecast</h2>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.&#34;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,&#34; chief financial officer Dave Wood said.<h2>Should you buy stock in Agilysys right now?</h2> 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&amp;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. </div></div>

AGYS

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.

Why Agilysys Stock Rallied Today