Progress Software (NASDAQ:PRGS) Issues Quarterly Earnings Results

Progress Software (NASDAQ:PRGS) posted its earnings results on Tuesday. The software maker reported $1.62 earnings per share for the quarter, beating analysts’ consensus estimates of $1.45 by $0.17, FiscalAI reports. Progress Software had a return on equity of 43.54% and a net margin of 8.87%.The business had revenue of $253.47 million during the quarter, compared to analyst estimates of $242.74 million. During the same quarter in the previous year, the firm earned $1.40 EPS. The company’s quarterly revenue was up 6.8% compared to the same quarter last year. 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 Price Performance

Shares of NASDAQ:PRGS opened at $39.16 on Thursday. The company’s fifty day moving average price is $30.13 and its 200-day moving average price is $34.92. The company has a debt-to-equity ratio of 1.97, a current ratio of 0.47 and a quick ratio of 0.47. The firm has a market capitalization of $1.65 billion, a price-to-earnings ratio of 19.01, a PEG ratio of 1.43 and a beta of 0.82. Progress Software has a one year low of $23.82 and a one year high of $56.58.

Wall Street Analyst Weigh In

Several brokerages recently commented on PRGS. Citigroup reduced their price objective on shares of Progress Software from $60.00 to $46.00 and set a “buy” rating for the company in a research note on Wednesday, April 1st. Wedbush cut their price target on shares of Progress Software from $65.00 to $45.00 and set an “outperform” rating for the company in a report on Tuesday, March 31st. Weiss Ratings lowered shares of Progress Software from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Thursday, April 16th. Guggenheim reaffirmed a “buy” rating and issued a $83.00 price target on shares of Progress Software in a report on Wednesday. Finally, Jefferies Financial Group lowered their price objective on Progress Software from $45.00 to $34.00 and set a “hold” rating on the stock in a research report on Tuesday, March 31st. Five analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $49.67.

Key Stories Impacting Progress Software

Here are the key news stories impacting Progress Software this week:

• Positive Sentiment: Progress Software beat Q2 expectations with EPS of $1.62 versus estimates around $1.45-$1.49, and revenue of $253.5 million versus about $242.7 million expected, which points to stronger-than-expected demand. Progress Software earnings report
• Positive Sentiment: The company raised full-year FY2026 EPS guidance to $6.09-$6.21, above prior Street expectations, and also issued Q3 guidance that topped consensus, reinforcing confidence in the outlook. Progress Software Q2 results release
• Positive Sentiment: Management and analysts highlighted broad-based strength, including AI-related demand for Progress’ data, workflow and infrastructure platforms, which supports the investment case for future growth. Zacks earnings call highlights
• Positive Sentiment: Brokerage commentary was also supportive: Oppenheimer called the quarter “solid,” while DA Davidson and Guggenheim reaffirmed buy ratings, even as some price targets were adjusted. Oppenheimer on PRGS Q2

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in PRGS. Qube Research & Technologies Ltd bought a new stake in Progress Software during the third quarter worth about $16,324,000. Marshall Wace LLP raised its holdings in shares of Progress Software by 732.6% during the 3rd quarter. Marshall Wace LLP now owns 357,384 shares of the software maker’s stock valued at $15,700,000 after buying an additional 314,459 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in Progress Software by 75.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 560,943 shares of the software maker’s stock worth $28,894,000 after buying an additional 241,515 shares during the last quarter. Cubist Systematic Strategies LLC purchased a new stake in Progress Software in the second quarter worth approximately $9,337,000. Finally, Amundi grew its position in Progress Software by 640.7% during the second quarter. Amundi now owns 155,526 shares of the software maker’s stock valued at $9,929,000 after acquiring an additional 134,528 shares during the last quarter.

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.