Progress Software (NASDAQ:PRGS) Posts Quarterly Earnings Results, Beats Expectations By $0.17 EPS

Progress Software (NASDAQ:PRGS) released its quarterly earnings results on Tuesday. The software maker reported $1.62 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.45 by $0.17, FiscalAI reports. The firm 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 business’s revenue was up 6.8% on a year-over-year basis. During the same quarter last year, the company posted $1.40 earnings per share. 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%

PRGS opened at $33.58 on Wednesday. The company has a debt-to-equity ratio of 1.97, a current ratio of 0.47 and a quick ratio of 0.47. Progress Software has a 12 month low of $23.82 and a 12 month high of $60.87. The stock has a market capitalization of $1.41 billion, a P/E ratio of 17.22, a P/E/G ratio of 1.45 and a beta of 0.83. The business has a 50 day simple moving average of $29.97 and a 200-day simple moving average of $34.96.

Analysts Set New Price Targets

Several research analysts have weighed in on the company. Jefferies Financial Group lowered their target price on Progress Software from $45.00 to $34.00 and set a “hold” rating on the stock in a research note on Tuesday, March 31st. Oppenheimer cut their price target on Progress Software from $70.00 to $57.00 and set an “outperform” rating for the company in a research note on Tuesday, March 31st. DA Davidson decreased 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. Citigroup dropped their price objective on shares of Progress Software from $60.00 to $46.00 and set a “buy” rating on the stock in a research note on Wednesday, April 1st. Finally, Weiss Ratings downgraded shares of Progress Software from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Thursday, April 16th. Four equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Progress Software presently has an average rating of “Moderate Buy” and a consensus price target of $46.40.

Institutional Investors Weigh In On Progress Software

A number of hedge funds and other institutional investors have recently bought and sold shares of PRGS. Qube Research & Technologies Ltd purchased a new stake in shares of Progress Software during the 3rd quarter worth $16,324,000. Marshall Wace LLP increased its holdings in shares of Progress Software by 732.6% in the 3rd quarter. Marshall Wace LLP now owns 357,384 shares of the software maker’s stock valued at $15,700,000 after purchasing an additional 314,459 shares in the last quarter. Goldman Sachs Group Inc. lifted its stake in shares of 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 purchasing an additional 241,515 shares during the period. Cubist Systematic Strategies LLC acquired a new stake in shares of Progress Software in the second quarter valued at about $9,337,000. Finally, Amundi boosted its holdings in Progress Software by 640.7% during the second quarter. Amundi now owns 155,526 shares of the software maker’s stock worth $9,929,000 after buying an additional 134,528 shares in the last quarter.

Key Headlines Impacting Progress Software

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

• Positive Sentiment: Progress Software delivered Q2 adjusted EPS of $1.62, ahead of the $1.49 consensus, while revenue of $253.5 million also topped estimates of $242.7 million. Article Title
• Positive Sentiment: Management lifted full-year FY 2026 EPS guidance to $6.09-$6.21, above the prior analyst view, signaling confidence in continued profitability. Article Title
• Positive Sentiment: The company also guided Q3 EPS to $1.53-$1.59 versus the $1.39 consensus, and revenue guidance of $244 million-$250 million was roughly in line with expectations. Article Title
• Neutral Sentiment: Progress also announced Progress Chef Enterprise Management for NVIDIA DGX Spark, expanding its AI infrastructure software offerings. Article Title

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.