AGYS

Agilysys (AGYS) reported Q3 2026 revenue of $93.36 million, up 17.7% year-over-year, beating consensus estimates by 2.21%. EPS of $0.67 exceeded expectations of $0.55 by 21.82%.

The company showed strong growth across products (+18.8%), subscription and maintenance (+22%), and professional services (+5.3%) segments. The stock has gained 21.1% over the past month but maintains a Zacks Rank #3 (Hold) rating.

Hewlett Packard Enterprise (HPE) is positioned as the superior value investment compared to Agilysys (AGYS) based on valuation metrics and earnings outlook. HPE has a Zacks Rank of #2 (Buy) with a forward P/E of 14.88 and PEG ratio of 0.44, while AGYS carries a Zacks Rank of #3 (Hold) with a forward P/E of 50.08 and PEG ratio of 2.50. HPE received a Value grade of B versus AGYS's F grade.

Wall Street analysts forecast Agilysys will report Q2 earnings of $0.55 per share, representing a 37.5% year-over-year increase, with revenues expected at $91.34 million, up 15.2% from the prior year quarter. Key revenue segments include subscription and maintenance services projected at $61.72 million (+21.1% YoY), professional services at $19.43 million (+6.5% YoY), and products at $10.08 million (-0.2% YoY). The stock has gained 16% over the past month and carries a Zacks Rank #3 (Hold) rating.