Progress Software (NASDAQ:PRGS) Issues Earnings Results

Progress Software (NASDAQ:PRGS) announced its quarterly earnings results on Tuesday. The software maker reported $1.62 EPS for the quarter, topping the consensus estimate of $1.49 by $0.13, FiscalAI reports. The business had revenue of $253.47 million for the quarter, compared to analyst estimates of $242.74 million. Progress Software had a return on equity of 43.67% and a net margin of 8.61%.The company’s quarterly revenue was up 6.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.40 EPS. Progress Software updated its FY 2026 guidance to 6.090-6.210 EPS and its Q3 2026 guidance to 1.530-1.590 EPS.

Here are the key takeaways from Progress Software’s conference call:

• Progress beat Q2 expectations across the board, with revenue of $253 million up 7% year over year, EPS of $1.62, operating margin of 40%, and adjusted free cash flow of $79 million. Management said the quarter exceeded guidance on every major metric and reflected broad-based strength across the portfolio.
• The company raised full-year 2026 guidance, now expecting revenue of $990 million to just over $1 billion and EPS of $6.09 to $6.21. Management also lifted its free cash flow outlook, citing strong first-half execution and momentum into the second half.
• AI is being positioned as a growth opportunity, especially in Progress’s data platform, workflow automation, and infrastructure management businesses. Executives said customers increasingly need “context and control” for AI, and highlighted new partnerships such as Progress Chef Enterprise Management for NVIDIA DGX Spark.
• ARR grew 2% year over year to $868 million and net retention improved to 100%, but management framed this as the best indicator of underlying momentum versus the stronger revenue growth, which was helped by deal timing and renewal timing. They also said they remain comfortable with roughly 2% organic ARR growth for now.
• Debt reduction and balance sheet improvement remained a priority, with net leverage falling to 2.9x from 3.4x at the start of the year and about $110 million of debt repaid in the first half. The company also repurchased $55 million of stock and said it sees more room for buybacks while continuing to delever.

Progress Software Stock Down 0.8%

Shares of PRGS traded down $0.26 during trading on Tuesday, reaching $33.58. The company’s stock had a trading volume of 1,830,767 shares, compared to its average volume of 980,598. Progress Software has a twelve month low of $23.82 and a twelve month high of $60.87. The company has a quick ratio of 0.47, a current ratio of 0.47 and a debt-to-equity ratio of 1.97. The company has a market cap of $1.41 billion, a price-to-earnings ratio of 17.22, a P/E/G ratio of 1.42 and a beta of 0.83. The company has a fifty day moving average of $29.92 and a two-hundred day moving average of $35.04.

Analyst Ratings Changes

A number of research firms have issued reports on PRGS. Wedbush reduced their target price on shares of Progress Software from $65.00 to $45.00 and set an “outperform” rating on the stock in a report on Tuesday, March 31st. Citigroup cut their price target on Progress Software from $60.00 to $46.00 and set a “buy” rating for the company in a report on Wednesday, April 1st. Weiss Ratings lowered Progress Software from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Thursday, April 16th. DA Davidson lowered their price target on Progress Software from $70.00 to $50.00 and set a “buy” rating for the company in a report on Wednesday, March 25th. Finally, Jefferies Financial Group cut their price objective on shares of Progress Software from $45.00 to $34.00 and set a “hold” rating on the stock in a report on Tuesday, March 31st. Four equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, Progress Software has an average rating of “Moderate Buy” and an average target price of $46.40.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Dimensional Fund Advisors LP boosted its stake in Progress Software by 1.8% in the third quarter. Dimensional Fund Advisors LP now owns 1,139,309 shares of the software maker’s stock valued at $50,044,000 after acquiring an additional 20,669 shares during the period. Geode Capital Management LLC grew its stake in Progress Software by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 1,081,487 shares of the software maker’s stock worth $46,468,000 after buying an additional 6,095 shares during the last quarter. The Manufacturers Life Insurance Company increased its position in Progress Software by 2.7% in the fourth quarter. The Manufacturers Life Insurance Company now owns 931,070 shares of the software maker’s stock worth $39,999,000 after buying an additional 24,659 shares during the period. Goldman Sachs Group Inc. lifted its stake in Progress Software by 75.6% in the first quarter. Goldman Sachs Group Inc. now owns 560,943 shares of the software maker’s stock valued at $28,894,000 after buying an additional 241,515 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. boosted its holdings in shares of Progress Software by 11.9% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 558,855 shares of the software maker’s stock valued at $24,008,000 after acquiring an additional 59,649 shares during the period.

Progress Software Company Profile

Progress Software (NASDAQ: PRGS) is a global provider of enterprise software designed to simplify and accelerate the delivery of business applications. The company’s offerings span digital experience management, application development and deployment, data connectivity and integration, and predictive analytics. Progress supports organizations in building, deploying, and managing mission-critical applications across on-premises, cloud and hybrid environments, helping to reduce development complexity and operational overhead.

Key products in Progress’s portfolio include Progress OpenEdge, a robust development and database platform for building transactional applications; Progress DataDirect, which enables high-performance connectivity to disparate data sources; Progress Sitefinity, a digital experience platform for content management and personalization; Progress Telerik, a suite of UI controls and developer tools; and Progress Kinvey, a serverless backend platform for mobile and web applications.