Progress Software (NASDAQ:PRGS) Releases Earnings Results, Misses Estimates By $0.97 EPS

by · The Cerbat Gem

Progress Software (NASDAQ:PRGS – Get Free Report) posted its quarterly earnings results on Wednesday. The software maker reported $0.55 earnings per share for the quarter, missing analysts’ consensus estimates of $1.52 by ($0.97), FiscalAI reports. The company had revenue of $246.01 million during the quarter, compared to analyst estimates of $247.33 million. Progress Software had a return on equity of 43.07% and a net margin of 8.87%.During the same period last year, the company posted $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.

Progress Software Stock Up 1.3%

NASDAQ PRGS traded up $0.53 during trading on Wednesday, hitting $39.97. 1,153,534 shares of the company traded hands, compared to its average volume of 844,552. Progress Software has a 12 month low of $23.82 and a 12 month high of $47.37. The business has a fifty day simple moving average of $42.06 and a 200 day simple moving average of $35.05. The company has a market capitalization of $1.64 billion, a P/E ratio of 19.40, a PEG ratio of 1.65 and a beta of 0.82. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 2.55.

Wall Street Analysts Forecast Growth

PRGS has been the topic of several research reports. 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 boosted their price target on Progress Software from $45.00 to $55.00 and gave the company a “buy” rating in a research note on Wednesday, August 12th. Jefferies Financial Group upgraded Progress Software to a “hold” rating in a report on Friday, September 25th. Oppenheimer cut their price objective on shares of 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, Guggenheim reiterated a “buy” rating and issued a $83.00 target price on shares of Progress Software in a research note on Wednesday, July 1st. Five equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $52.17.

Check Out Our Latest Stock Analysis on Progress Software

Key Stories Impacting Progress Software

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

  • Positive Sentiment: Progress raised its fiscal 2026 adjusted EPS guidance to $6.15–$6.23, above the $5.90 analyst consensus. Fiscal-year revenue guidance of approximately $1.044–$1.052 billion is also consistent with or slightly above expectations. Progress Software Reports Fiscal Third Quarter 2026 Financial Results
  • Positive Sentiment: Fiscal third-quarter GAAP net income increased 17% year over year to $22.8 million, while operating income rose 6% to $46.6 million. Operating margin expanded to 19%, and operating cash flow climbed 20% to $88 million.
  • Positive Sentiment: The company launched new Progress Domo Magic ETL capabilities focused on data-pipeline visibility, governed artificial intelligence and auditable automation, supporting its strategy to build an AI infrastructure software platform. Progress Software Advances Domo Magic ETL and Expands Governed AI Capabilities
  • Neutral Sentiment: The Domo AI and Data Platform acquisition closed during the quarter, adding new capabilities but also increasing integration demands and execution risk.
  • Negative Sentiment: Third-quarter revenue fell 2% year over year to $246 million, while annualized recurring revenue rose only 1% on a constant-currency basis, indicating limited near-term growth momentum.
  • Negative Sentiment: Reported EPS of $1.38 missed the $1.52 consensus estimate by $0.14. Fourth-quarter EPS guidance of $1.24–$1.33 is below the $1.37 consensus, even though revenue guidance of $297–$305 million is well above expectations.
  • Negative Sentiment: Insider activity has been unfavorable, with eight reported insider sales and no purchases during the past six months. Progress Software Q3 Revenue Falls 2% to $246 Million

About Progress Software

(Get Free Report)

Progress Software Corporation (NASDAQ: PRGS) develops enterprise software designed to help organizations build, deploy, manage and secure business applications and digital services. Its portfolio supports application development, data connectivity, integration, file transfer, application performance monitoring and network management across cloud, hybrid and on-premises environments.

The company’s products and brands include OpenEdge for developing and deploying business applications; DataDirect for data connectivity; MOVEit for managed file transfer; WhatsUp Gold and Flowmon for network monitoring and visibility; Chef for infrastructure and application automation; Sitefinity for digital experience management; and Telerik and Kendo UI for user interface and development tools.

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