Progress Software Corporation provides software products for developing, deploying, and managing AI-powered applications and digital experiences in the United States and internationally. Its offerings include Agentic RAG, Automate MFT, Chef, Corticon, DataDirect, Developer Tools, Flowmon, Kemp LoadMaster, MarkLogic, MOVEit, OpenEdge, Semaphore, ShareFile, Sitefinity, and WhatsUp Gold. The company also offers project management, implementation, custom software development, programming, and training services. It sells to end users, independent software vendors, original equipment manufacturers, system integrators, value-added resellers, and distributors. Founded in 1981, it is headquartered in Burlington, Massachusetts.
Progress Software Posts 43% Operating Margin as Domo Deal Lifts Debt to $1.24 Billion
Progress Software reported third-quarter results on September 30, 2026, showing revenue down 2% to $246 million while non-GAAP earnings per share rose 13% to $1.69, as expenses fell about 6% and operating margin expanded to 43% from 40% a year earlier. Adjusted free cash flow grew 17% to $87 million, with days sales outstanding dropping to 42 from 73 at the end of fiscal 2025, funding $170 million of debt paydown this year and $17 million of buybacks in the quarter. The company closed the largest acquisition in its history, paying $400 million for Domo, or 1.4 times revenue and 3.5 times pro forma EBITDA, and management expects Domo to add well over $100 million in annual EBITDA once integration finishes by the end of fiscal 2027. Progress drew $390 million on its revolver, leaving total debt near $1.24 billion and net leverage around 2.7 times, and management warned Domo will run slightly below a 30% operating margin while synergies ramp, pulling overall margin to 36% to 37% from its usual 38% to 39% with roughly $21 million of added interest expense. Annual recurring revenue rose only about 1% on a pro forma basis with net retention at 99%, hedge fund holders fell to 23 from 29 in the prior quarter, and short sellers hold 16.69% of the float against a forward P/E of 6.47 as of October 2.
Cloud & Digital Infrastructure › Horizontal SaaS Capital
PRGS · Capital · Neutral Q3 revenue fell 2% to $246M but EPS rose 13% to $1.69 with 43% operating margin, while the $400M Domo deal lifted debt to $1.24B and cut guidance to 36-37% margin.
DOMO · Capital · Neutral Progress closed its $400M acquisition of Domo, but Domo will run below 30% operating margin while synergies ramp, pulling overall margin down.
Accenture Shares Jump 15.8% on Q4 Earnings Beat; Acuity, Progress Software Fall on Revenue Misses
Accenture plc reported fourth-quarter fiscal 2026 adjusted earnings of $3.29 per share, surpassing the Zacks Consensus Estimate of $3.19 per share, sending its shares up 15.8%. Acuity Inc. posted fourth-quarter fiscal 2026 revenues of $1,244.40 million, missing the Zacks Consensus Estimate of $1,251.87 million, and its shares fell 3.4%. McKesson Corp. shares surged 5.3% after the company reiterated its fiscal 2027 earnings per share guidance. Progress Software Corp. shares tumbled 8.5% after it reported third-quarter fiscal 2026 revenues of $246.01 million, lagging the Zacks Consensus Estimate of $247.16 million.
ACN · Capital · Positive Accenture reported Q4 fiscal 2026 adjusted EPS of $3.29, beating the Zacks Consensus Estimate of $3.19, sending shares up 15.8%.
AYI · Capital · Negative Acuity posted Q4 fiscal 2026 revenues of $1,244.40 million, missing the Zacks Consensus Estimate of $1,251.87 million, and shares fell 3.4%.
MCK · Capital · Positive McKesson shares surged 5.3% after the company reiterated its fiscal 2027 earnings per share guidance.
PRGS · Capital · Negative Progress Software reported Q3 fiscal 2026 revenues of $246.01 million, lagging the Zacks Consensus Estimate of $247.16 million, and shares tumbled 8.5%.
Progress Software Beats Q3 EPS Estimates With $1.69 Per Share
Progress Software reported quarterly earnings of $1.69 per share, beating the Zacks Consensus Estimate of $1.49 per share and marking a positive earnings surprise of 13.42%. The figure compares to earnings of $1.5 per share a year ago, adjusted for non-recurring items, and the company has now surpassed consensus EPS estimates in each of the last four quarters. Revenue for the quarter ended August 2026 came in at $246.01 million, missing the Zacks Consensus Estimate by 0.47% and down from year-ago revenues of $249.79 million, with the company having topped consensus revenue estimates two times over the last four quarters. Ahead of the release, the estimate revisions trend was mixed, translating into a Zacks Rank #3 (Hold), and the current consensus stands at $1.41 per share on $251.36 million in revenues for the coming quarter and $6.16 per share on $994.66 million in revenues for the current fiscal year. Progress Software shares have lost about 8.2% since the beginning of the year versus the S&P 500's gain of 12.1%, while industry peer Pegasystems has yet to report results for the quarter ended September 2026, with expectations of $0.45 per share in earnings and $442.6 million in revenues.
Domo to sell its AI and data platform to Progress Software for $400 million
Domo has agreed to sell substantially all of its assets and certain liabilities to Progress Software for $400 million in cash. The deal, unanimously approved by Domo's board, will leave the company with net cash of approximately $246 million, or $4.84 per share, representing an 81% premium to the 30-day volume weighted average price. Domo will remain a publicly listed corporation under a new name and ticker, preserving more than $900 million of net operating loss carryforwards and certain retained assets. Progress will acquire and operate Domo's AI and data platform, while Domo's holding company will seek to monetize its tax attributes and consider returning capital to shareholders. The transaction is expected to close before November 30, 2026, subject to regulatory approvals and other customary conditions.
Progress Software Stock Could Rally 26.8% Based on Analyst Price Targets
Progress Software shares closed at $39.16 and have gained 22.5% over the past four weeks, with Wall Street analysts setting a mean price target of $49.67 that implies a further 26.8% upside. The average is based on six short-term targets ranging from $34.00 to $83.00, with a standard deviation of $17.24. While the lowest estimate suggests a 13.2% decline, the most optimistic points to a 112% gain. Analysts have also been revising earnings estimates higher, with the Zacks Consensus Estimate for the current year rising 1.2% over the past month, and the stock carries a Zacks Rank #2 (Buy).
Progress Software (PRGS) Earns Zacks Rank #2 and A Value Grade
Progress Software currently holds a Zacks Rank #2 (Buy) and an A grade for Value, signaling it may be undervalued. The stock trades at a P/E ratio of 7.46, well below its industry average of 18.95, and its forward P/E has ranged from 7.37 to 14.46 over the past year. PRGS also shows a P/B ratio of 4 versus an industry average of 5.48, a P/S ratio of 1.6 compared to 3.41, and a P/CF ratio of 9.86 against 13.71. These metrics, combined with a strong earnings outlook, suggest Progress Software is one of the market's strongest value stocks.
PRGS · Capital · Positive Zacks Rank #2 (Buy) and A Value Grade indicate the stock is undervalued based on low P/E, P/B, P/S, P/CF ratios relative to industry.
Progress Software Stock Still 44% Undervalued on DCF Despite 30% Weekly Jump
Progress Software shares have surged 30.7% over the past week, yet a Discounted Cash Flow analysis suggests the stock remains about 44.4% undervalued relative to an intrinsic value estimate of roughly $70 per share. The DCF model projects future free cash flows from a base of approximately $306.3 million in trailing twelve-month free cash flow, assuming continued growth. The company recently raised full-year guidance on stronger AI-related demand, but the share price around $39 still sits well below the modeled fair value. On a price-to-earnings basis, Progress Software trades at about 18.5 times, close to a tailored fair multiple of 18.9 times and below the software industry average of roughly 28.0 times. Community narratives remain split, with a bull case seeing 23% upside and a bear case suggesting 15% overvaluation, hinging on execution and AI-driven cash flow durability.
Meta surges 11% on cloud business news, leading midday stock movers
Meta Platforms surged 11% after confirming it is building a new cloud business to sell excess artificial intelligence computing power to outside customers. General Mills jumped more than 6% after posting fourth-quarter adjusted earnings of 95 cents a share on revenue of $4.61 billion, topping estimates, and announcing plans for $3 billion in cumulative cost savings through fiscal 2030. Progress Software rallied over 18% on better-than-expected second-quarter results and strong guidance. Datadog gained more than 2% after disclosing the acquisition of AI startup Adaptive ML. Nike rose more than 4% despite a 12% drop in China sales, as quarterly results beat expectations. Shutterstock tumbled nearly 30% and Getty Images fell 6% after Getty called off their proposed merger due to UK regulatory demands. Alcoa dropped 9% on a $4.1 billion deal to acquire South32's bauxite, alumina, and aluminum portfolio. Salesforce and ServiceNow rose after Guggenheim upgraded both to buy, with ServiceNow up over 6% and Salesforce up 5%. Bloom Energy added more than 2% on an expanded partnership with Brookfield to finance AI infrastructure power. Sandisk and Micron Technology fell sharply, with Sandisk down 9% and Micron off about 8%, after both more than tripled in the prior quarter.
Energy Transition & Power Demand › Grid, Transmission & Power Equipment ▲Demand
Artificial Intelligence › AI Compute Cloud & Neoclouds ▲Competition
Energy Transition & Power Demand › Behind-the-Meter & On-site Power ▲Demand
Artificial Intelligence › AI Power & Cooling ▲Demand
Artificial Intelligence › AI Tooling, Data & MLOps Technology
AA · Capital · Negative Alcoa dropped 9% on a $4.1 billion deal to acquire South32's assets, a capital event.
BE · Demand · Positive Bloom Energy added more than 2% on an expanded partnership with Brookfield to finance AI infrastructure power, boosting demand for its products.
CRM · Capital · Positive Salesforce rose after Guggenheim upgraded to buy, an analyst rating event.
DDOG · Capital · Positive Datadog gained more than 2% after disclosing the acquisition of AI startup Adaptive ML, a capital event.
GETY · Regulation · Negative Getty Images fell 6% after Getty called off their proposed merger due to UK regulatory demands.
GIS · Capital · Positive Beat Q4 earnings estimates and announced $3B cost savings plan.
Progress Software stock surges 18% after beating Q2 estimates and raising guidance
Progress Software stock surged nearly 18% on Wednesday after the company reported fiscal second-quarter results that beat Wall Street expectations and raised its full-year guidance. Adjusted earnings came in at $1.62 per share on revenue of $253.5 million, topping analyst estimates of $1.49 per share and $242.74 million. Revenue rose 6.7% year over year, while net income jumped 24%, driven by strong demand across its product portfolio including AI-powered offerings. The company now expects full-year revenue between $990 million and $1.02 billion, up from its prior range of $988 million to $1 billion, and adjusted earnings per share between $6.09 and $6.21, an increase of $0.18 at the midpoint. Progress also raised its adjusted free cash flow guidance to between $271 million and $283 million and unlevered free cash flow to between $323 million and $334 million.
Progress Software raises full-year EPS guidance to $6.09-$6.21, targets net leverage of ~2.8x
Progress Software raised its full-year 2026 earnings per share guidance to a range of $6.09 to $6.21, an increase of $0.18 from its prior outlook, while targeting a year-end net leverage ratio of approximately 2.8 times. For the second quarter, the company reported revenue of $253 million, exceeding the high end of its guidance, with operating margin of 40% and earnings per share of $1.62. Annual recurring revenue reached $868 million, representing 2% pro forma year-over-year growth, and the net retention rate improved to 100%. The company also launched Chef Enterprise Management for NVIDIA's DGX Spark and highlighted AI-driven demand in its data platform products. Progress expects full-year revenue between $990 million and just over $1 billion, with adjusted free cash flow of $271 million to $283 million, and plans approximately $220 million in net debt repayment and $75 million in share repurchases for the year.
Progress Software Reports Fiscal Second Quarter 2026 Financial Results
Progress Software announced its financial results for the fiscal second quarter ended May 31, 2026. The company, a member of the Russell 2000 Index and a provider of AI-powered digital experience and infrastructure software, released its earnings and a supplemental slide presentation on its Investor Relations webpage. Progress will host a conference call at 5:00 p.m. Eastern Time today to discuss the results and outlook. A live webcast and phone dial-in details are available, with a replay to follow on the same webpage.
PRGS · Capital · Positive Company reported fiscal Q2 2026 financial results, typically positive if results meet or beat expectations, but article does not specify actual figures; earnings release is a capital event.
Nike, Constellation Brands, Progress Software to Report Earnings After Hours on June 30
Nike, Constellation Brands, and Progress Software are scheduled to report quarterly earnings after the market closes on June 30, 2026. Nike's consensus earnings per share forecast from 11 analysts is 11 cents, a 21.43% decrease from the same quarter last year, though the company has beaten expectations in every quarter over the past year. Constellation Brands' consensus from 6 analysts is $3.22 per share, unchanged from a year ago, after missing estimates in the second calendar quarter of 2025 by 3.59%. Progress Software's consensus from 3 analysts is $1.15 per share, a 3.60% increase from the prior year, and it has also beaten expectations in each of the past four quarters.
NKE · Capital · Neutral Earnings report scheduled; consensus EPS down 21.43% YoY but company has beaten expectations in every quarter over the past year.
PRGS · Capital · Neutral Earnings report scheduled; consensus EPS up 3.60% YoY and company has beaten expectations in each of the past four quarters.
STZ · Capital · Neutral Earnings report scheduled; consensus EPS unchanged YoY but company missed estimates in Q2 2025 by 3.59%.
Progress Software to report Q2 earnings on June 30 after market close
Progress Software is scheduled to announce its second-quarter earnings results on Tuesday, June 30th, after market close. The consensus earnings per share estimate is $1.49, representing a 6.4% increase year-over-year, while the consensus revenue estimate is $242.74 million, up 2.3% from the prior year. Over the last two years, the company has beaten earnings per share estimates 100% of the time and revenue estimates 75% of the time. In the past three months, earnings per share estimates have seen six upward revisions and none downward, while revenue estimates have seen five upward revisions and one downward.
Progress Software Shares Soar 11.2% on Earnings Optimism and AI-Driven Growth
Progress Software shares surged 11.2% to close at $33.15 in the last trading session, driven by optimism around its fiscal second-quarter earnings, acquisitions, and AI-driven growth. The company expects second-quarter fiscal 2026 revenue between $240 million and $246 million, with non-GAAP diluted earnings per share of $1.47 to $1.53. Progress Software is embedding AI capabilities across its product portfolio, which includes OpenEdge, WhatsUp Gold, ShareFile, Loadmaster, MOVEit, and DevTools, while the integration of ShareFile has strengthened its SaaS capabilities and recurring revenues. The consensus earnings estimate for the upcoming quarter is $1.49 per share on revenue of $241.7 million, though the estimate has remained unchanged over the last 30 days. The stock currently carries a Zacks Rank #3, or Hold.
Secure File Transfer Market Projected to Reach $8.34 Billion by 2031
The global Secure File Transfer market is projected to grow from USD 5.69 billion in 2026 to USD 8.34 billion by 2031 at a CAGR of 8.0%, according to a new report by MarketsandMarkets. Solutions are expected to hold the largest share of the market at 80.3% in 2026, while the services segment is forecast to grow at the highest CAGR during the forecast period. Asia Pacific is projected to be the fastest-growing regional market, and the healthcare vertical is expected to grow at the highest CAGR of 10.3%. The BFSI segment is estimated to have the largest market share, driven by the need for secure, high-volume exchange of sensitive financial information. Key vendors include IBM, OPSWAT, Fortra, Progress Software, and Boomi.
United States