Progress Software (NASDAQ:PRGS) Earns “Buy” Rating from DA Davidson

Progress Software (NASDAQ:PRGS)‘s stock had its “buy” rating reaffirmed by equities research analysts at DA Davidson in a note issued to investors on Friday, Benzinga reports. They presently have a $55.00 price target on the software maker’s stock. DA Davidson’s price objective would indicate a potential upside of 51.56% from the stock’s current price.

PRGS has been the topic of a number of other reports. Jefferies Financial Group upgraded Progress Software to a “hold” rating in a research report on Friday, September 25th. Guggenheim restated a “buy” rating and set a $83.00 price objective on shares of Progress Software in a research report on Wednesday, July 1st. Oppenheimer decreased their price objective on Progress Software from $57.00 to $50.00 and set an “outperform” rating on the stock in a research report on Wednesday, July 1st. Finally, Weiss Ratings upgraded Progress Software from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Tuesday, August 11th. Five investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $52.17.

Progress Software Price Performance

Progress Software stock traded down $0.29 during midday trading on Friday, reaching $36.29. 252,034 shares of the stock traded hands, compared to its average volume of 847,004. The stock’s fifty day moving average is $42.09 and its 200-day moving average is $35.10. Progress Software has a 12 month low of $23.82 and a 12 month high of $47.37. The stock has a market cap of $1.49 billion, a P/E ratio of 16.73, a PEG ratio of 1.68 and a beta of 0.89. The company has a quick ratio of 0.81, a current ratio of 0.81 and a debt-to-equity ratio of 2.55.

Progress Software (NASDAQ:PRGS) last announced its quarterly earnings results on Wednesday, September 30th. The software maker reported $1.69 EPS for the quarter, beating analysts’ consensus estimates of $1.52 by $0.17. Progress Software had a return on equity of 43.68% and a net margin of 9.24%.The company had revenue of $246.01 million during the quarter, compared to analyst estimates of $247.33 million. During the same period in the prior year, the company earned $0.44 earnings per share. The firm’s revenue was down 1.5% on a year-over-year basis. Progress Software has set its Q4 2026 guidance at 1.240-1.330 EPS and its FY 2026 guidance at 6.150-6.230 EPS. As a group, equities research analysts anticipate that Progress Software will post 4.77 EPS for the current year.

Institutional Investors Weigh In On Progress Software

Several hedge funds and other institutional investors have recently modified their holdings of the business. Dimensional Fund Advisors LP grew its stake in Progress Software by 10.9% in the first quarter. Dimensional Fund Advisors LP now owns 1,233,830 shares of the software maker’s stock worth $31,659,000 after purchasing an additional 121,314 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its position in Progress Software by 133.6% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,221,647 shares of the software maker’s stock valued at $31,335,000 after acquiring an additional 698,611 shares in the last quarter. The Manufacturers Life Insurance Company bought a new stake in Progress Software during the 2nd quarter valued at $40,780,000. Heron Bay Capital Management bought a new stake in Progress Software during the 2nd quarter valued at $34,011,000. Finally, Rice Hall James & Associates LLC acquired a new stake in shares of Progress Software in the 2nd quarter worth $19,149,000.

Trending Headlines about Progress Software

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

• Positive Sentiment: Progress reported fiscal Q3 adjusted EPS of $1.69, exceeding analyst estimates by $0.17. GAAP net income rose 17% year over year, operating income increased 6%, and operating cash flow climbed 20% to $88 million. Progress Software Q3 earnings and guidance
• Positive Sentiment: The company raised or reaffirmed its fiscal 2026 adjusted EPS outlook to $6.15-$6.23, broadly in line with the $6.18 FactSet consensus and above some earlier estimates. The outlook incorporates contributions from the Domo AI and Data Platform acquisition. Progress Software fiscal 2026 outlook
• Positive Sentiment: Progress launched new Agentic RAG capabilities designed to connect enterprise data across business systems for AI agents and large language models. The release supports management’s strategy to reposition the company as an AI infrastructure provider. Progress Software Agentic RAG announcement
• Neutral Sentiment: Management highlighted an AI-led shift and the Domo acquisition on its earnings call. Investors are looking for evidence that the transaction can accelerate growth and improve recurring revenue, which rose only 1% year over year on a constant-currency basis. Progress Software earnings call highlights
• Negative Sentiment: Q3 revenue of $246 million came in slightly below the $247.3 million consensus and declined about 1.5%-2% year over year. More importantly, fourth-quarter adjusted EPS guidance of $1.24-$1.33 was below the $1.37 analyst estimate, creating a near-term earnings concern despite projected revenue of $297-$305 million. Progress Software Q4 2026 earnings guidance
• Negative Sentiment: Some investors and analysts remain concerned that AI-related execution and integration risks warrant a lower valuation discount, particularly while core revenue growth remains muted. Progress Software AI risk analysis

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.