Progress Software (NASDAQ:PRGS) Issues FY 2026 Earnings Guidance

Progress Software (NASDAQ:PRGS) issued an update on its FY 2026 earnings guidance on Wednesday. The company provided earnings per share guidance of 6.150-6.230 for the period, compared to the consensus estimate of 5.900. The company issued revenue guidance of $1.0 billion-$1.1 billion, compared to the consensus revenue estimate of $1.0 billion. Progress Software also updated its Q4 2026 guidance to 1.240-1.330 EPS.

Progress Software Stock Down 8.5%

Shares of NASDAQ:PRGS opened at $36.58 on Friday. Progress Software has a fifty-two week low of $23.82 and a fifty-two week 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’s 50-day simple moving average is $42.09 and its 200-day simple moving average is $35.10. The company has a market cap of $1.50 billion, a price-to-earnings ratio of 16.86, a PEG ratio of 1.68 and a beta of 0.89.

Progress Software (NASDAQ:PRGS) last announced its quarterly earnings data on Tuesday, June 30th. The software maker reported $1.62 earnings per share for the quarter, beating analysts’ consensus estimates of $1.46 by $0.16. The company 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 43.68% and a net margin of 9.24%.The firm’s revenue for the quarter was up 6.8% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.40 EPS. As a group, equities research analysts predict that Progress Software will post 4.77 earnings per share for the current year.

Analysts Set New Price Targets

Several equities analysts recently weighed in on PRGS shares. Oppenheimer dropped their price objective on Progress Software from $57.00 to $50.00 and set an “outperform” rating for the company 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. Jefferies Financial Group raised Progress Software to a “hold” rating in a research note on Friday, September 25th. DA Davidson upped their price target on shares of Progress Software from $45.00 to $55.00 and gave the stock a “buy” rating in a research report on Wednesday, August 12th. Finally, Guggenheim reissued a “buy” rating and issued a $83.00 price objective on shares of Progress Software in a research report on Wednesday, July 1st. Five analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, Progress Software currently has a consensus rating of “Moderate Buy” and a consensus price target of $52.17.

Key Progress Software News

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

• Positive Sentiment: Progress Software reported adjusted third-quarter EPS of $1.69, exceeding the $1.49 consensus estimate. Management also raised its fiscal 2026 adjusted EPS outlook to $6.15-$6.23, broadly in line with or slightly above some analyst expectations. Progress Software Beats Q3 Earnings Estimates
• Positive Sentiment: The company completed its acquisition of Domo’s AI and Data Platform business during the quarter, and announced new Agentic RAG capabilities designed to connect enterprise data to AI agents and large language models. These offerings could support longer-term growth in AI infrastructure and governed enterprise data. Progress Software Announces Agentic RAG Capabilities
• Neutral Sentiment: Fiscal third-quarter revenue was approximately $246 million, essentially matching expectations but declining about 1.5%-2% year over year. Annualized recurring revenue increased only 1% on a constant-currency basis, while operating margin and operating cash flow improved.
• Negative Sentiment: GAAP EPS was $0.55, well below the $1.49 consensus estimate, although the adjusted figure surpassed expectations. The distinction likely added uncertainty about earnings quality and the financial effects of the Domo acquisition. Progress Software Fiscal Third Quarter Results
• Negative Sentiment: Fourth-quarter adjusted EPS guidance of $1.24-$1.33 was below the $1.37 consensus estimate, despite revenue guidance of $297 million-$305 million being above expectations. Investors may be prioritizing the weaker profit outlook over the stronger revenue range.
• Negative Sentiment: Analyst commentary argued that Progress Software’s AI exposure warrants a larger valuation discount, reflecting execution, integration and competitive risks as the company expands its AI platform. Progress Software AI Risk Demands a Bigger Discount

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.