Progress Software (NASDAQ:PRGS) Posts Earnings Results

Progress Software (NASDAQ:PRGS) posted its quarterly earnings data on Wednesday. The software maker reported $1.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.52 by $0.17, FiscalAI reports. The business had revenue of $246.01 million for the quarter, compared to analysts’ expectations of $247.33 million. Progress Software had a return on equity of 43.68% and a net margin of 9.24%.The business’s revenue was down 1.5% on a year-over-year basis. During the same quarter last year, the firm earned $0.44 earnings per share. Progress Software updated its Q4 2026 guidance to 1.240-1.330 EPS and its FY 2026 guidance to 6.150-6.230 EPS.

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

• Q3 execution was strong: ARR rose more than 1% year over year in constant currency to $873 million, revenue reached $246 million, operating margin was 43%, and EPS increased 13% to $1.69, above the high end of guidance.
• Cash generation and balance-sheet metrics improved materially, with adjusted free cash flow up 17% to $87 million, DSO improving to 42 days, and $170 million of year-to-date debt repayment. Progress also raised its FY2026 outlook to $1.044 billion-$1.052 billion of revenue and $6.15-$6.23 of EPS.
• Progress completed its $400 million acquisition of Domo’s AI and data platform business, viewing its consumption-based data, analytics, and agentic workflow capabilities as strategically complementary. Management expects Domo’s steady-state revenue to settle at approximately $280 million-$290 million as declining seat-based and services revenue offsets the more durable consumption business.
• Domo is expected to dilute Progress’ FY2027 operating margin by roughly 100-200 basis points during integration, while adding about $21 million in annual interest expense from acquisition financing. Management expects these effects to reverse as synergies ramp, with Domo ultimately contributing more than $100 million of annual EBITDA.
• Management sees significant upside from applying Domo’s consumption-based pricing model across more of Progress’ portfolio, as rising AI-related data volumes and infrastructure complexity could drive greater usage and capacity demand. Potential cross-selling between the two customer bases is not included in current forecasts and represents additional upside.

Progress Software Stock Down 1.5%

Shares of PRGS traded down $0.54 during mid-day trading on Friday, reaching $36.04. 197,436 shares of the stock traded hands, compared to its average volume of 846,696. The stock has a fifty day simple moving average of $42.09 and a 200 day simple moving average of $35.10. Progress Software has a 12-month low of $23.82 and a 12-month high of $47.37. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 2.55. The firm has a market cap of $1.48 billion, a price-to-earnings ratio of 16.62, a P/E/G ratio of 1.68 and a beta of 0.89.

Wall Street Analyst Weigh In

A number of analysts have issued reports on PRGS shares. Guggenheim reissued a “buy” rating and issued a $83.00 price target on shares of Progress Software in a research note on Wednesday, July 1st. Weiss Ratings raised Progress Software from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday, August 11th. DA Davidson lifted their price target on shares of Progress Software from $45.00 to $55.00 and gave the company a “buy” rating in a research report on Wednesday, August 12th. Oppenheimer decreased their price target on shares of Progress Software from $57.00 to $50.00 and set an “outperform” rating for the company in a research report on Wednesday, July 1st. Finally, Jefferies Financial Group upgraded Progress Software to a “hold” rating in a report on Friday, September 25th. Five equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $52.17.

About Progress Software

Progress Software Corporation develops enterprise software that helps organizations build, deploy, integrate, and manage business applications and digital services. Its offerings are designed to support application development, data connectivity, integration, messaging, user experiences, and infrastructure performance across on-premises, cloud, and hybrid environments.

The company’s product portfolio includes OpenEdge for application development and deployment, DataDirect for data connectivity, MOVEit for managed file transfer, WhatsUp Gold for network monitoring, and Sitefinity for digital experience management.