Agilysys, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Agilysys, Inc. (NASDAQ:AGYS) just released its second-quarter report and things are looking bullish. The company beat forecasts, with revenue of US$79m, some 3.2% above estimates, and statutory earnings per share (EPS) coming in at US$0.41, 88% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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After the latest results, the six analysts covering Agilysys are now predicting revenues of US$316.5m in 2026. If met, this would reflect an okay 5.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 31% to US$1.14. Before this earnings report, the analysts had been forecasting revenues of US$310.8m and earnings per share (EPS) of US$0.95 in 2026. Although the revenue estimates have not really changed, we can see there's been a solid gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

See our latest analysis for Agilysys

The consensus price target rose 7.4% to US$140, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Agilysys analyst has a price target of US$155 per share, while the most pessimistic values it at US$130. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Agilysys' revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2026 being well below the historical 16% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 15% per year. Factoring in the forecast slowdown in growth, it seems obvious that Agilysys is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Agilysys' earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Agilysys. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Agilysys going out to 2028, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Agilysys that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.