Hello, everyone,
Now that Jensen Huang has helped stem the decline in software stocks a bit,
it might be worth taking another close look at this sector.
US-Softwarewerte erholen sich: Jensen Huang entkräftet Angst vor KI-bedingter Disruption
June 3, 2026
For a change, I’ll start today’s presentation with the chart. Here, I’ve included the
iShares Expanded Tech-Software Sector ETF
as a benchmark.
Here you can clearly see that, starting in late 2024, the software sector enters a bull market—and our stock is behaving exactly the same way.
My friends, please share your thoughts and those of our prompts in the comments.
(@Raketentoni , @Aktienhauptmeister )
Agilysys Countered AI Concerns with Its 17th Consecutive Record Quarter
Agilysys (ISIN: US00847J1051) develops software for the hotel and leisure industries. The software offers solutions for reservations, point-of-sale systems, guest management, and digital ordering. The company generates recurring revenue through software subscriptions and service contracts. The company has been in existence since 1963. It went public on the NASDAQ in 1972.
On May 18, 2026, the company reported its Q4 2026 results. It posted its 17th consecutive quarter of record revenue and benefited particularly from growth in subscription-based software for hotels and casinos. Quarterly revenue rose 12% to $82.9 million. Earnings per share increased by 207% to $0.43.
In addition to the strong results, the company particularly impressed with its optimistic outlook for 2027. Management forecast significantly higher subscription revenue and sustained strong growth, even though many investors had feared that AI might put pressure on traditional hotel software. Of particular importance here is the long-term partnership with Marriott for cloud-based hotel software, as it promises recurring revenue for years to come.
Conclusion: Agilysys is a specialized software provider that has evolved into a long-term infrastructure partner for the hotel industry. Its business model is based on high customer retention, recurring revenue, and rising margins. The optimistic outlook gives investors hope that the business can continue to hold its own despite AI alternatives.
(Source: Traderfox)
Agilysys (AGYS) could be the next software stock to stage a stronger recovery. The company provides software solutions for the hospitality sector, and CEO Ramesh Srinivasan is determined to position the company as an “AI disruptor.” High demand for AI is expected to shorten sales cycles. At the “INSPIRE Technology User Conference” in late April, over 30 new AI-powered features and software modules were unveiled. Plans also include AI agents integrated directly into the PMS to handle routine front desk tasks.
Agilysys (AGYS) provides leading software solutions for the hospitality industry and is benefiting from the fact that implementation times can be accelerated thanks to product modernization efforts carried out in recent years. Various processes—such as reservations, check-in procedures, room assignments, and guest communication—can be optimized in hotels, resorts, cruise ships, casinos, and restaurants.
INVESTOR PRESENTATION
In the last fiscal year, Agilysys Inc.’s revenue rose by 15.9%, from $275.6 million to $319.3 million. Net income increased by 67.0%, from $23.2 million to $38.8 million. The net profit margin was thus 12.1%, compared to 8.4% in the previous year. On July 27, 2026, Agilysys Inc. reported its Q3 results for the quarter ending June 30, 2026. Revenue for the reporting period was $87.7 million (+14.3% compared to the same quarter last year), and net income was $9.0 million (+83.9% compared to the same quarter last year).
Particularly noteworthy:
According to the consensus, revenue is expected to grow from $275.6 million (2025) to $513.0 million (2029), while the EBIT margin is expected to rise from 8.20% to 20.70% .
Free cash flow is expected to increase from $52.34 million to $152.2 million .
Brief summary:
Based on the estimates presented, the valuation will become significantly more attractive by 2029:
The P/E ratio will fall from 88.5× to 33.2×, while the FCF yield rises from 2.67% to 5.06%.
The P/B ratio and the dividend metrics are not reported on MarketScreener for these years.
11/08/2026, 9:55:04 PM •
Lang & Schwarz (EUR)
92.00 EUR
