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Agilysys (AGYS +21.66%) stock is soaring in Tuesday's trading after the company posted strong quarterly results. The software specialist's share price surged 20.2% higher as of 1 p.m. ET, and been up as much as 26.2% earlier in the session. After yesterday's market close, Agilysys posted results for the second quarter of its 2026 fiscal year, which closed on Sept. 30. The business reported sales and earnings that breezed past the market's expectations, and management also raised its full-year performance guidance for the year. Agilysys rockets higher following latest earnings release Agilysys notched non-GAAP (generally accepted accounting principles) adjusted earnings per share of $0.40 on sales of $79.29 million. Earnings per share beat the average Wall Street analyst estimate by $0.02, and sales for the period came in roughly $2.4 million better than anticipated. Revenue was up approximately 16% year over year thanks to growth of 33% for subscription sales, and earnings per share improved from $0.34 in last year's quarter. What's next for Agilysys? On the heels of its strong fiscal Q2 performance, Agilysys opted to raise key performance targets for the year. The company is now guiding for sales to come in between $315 million and $318 million -- up from previous guidance for revenue between $308 million and $312 million. The company also raised its target for annual subscription revenue growth to 29% -- up from its earlier forecast for growth of 27%. Between strong momentum for its subscription-based business and efficiency improvements driven by artificial intelligence (AI) and other factors, Agilysys has been delivering impressive growth this year -- and shares could keep marching higher if these trends continue.
