Progress Software Reports 18% Revenue Growth in Q4, Shares Up 10.62%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
0mins
Should l Buy PRGS?
Source: Fool
- Strong Financial Performance: Progress Software reported an 18% year-over-year revenue increase to $253 million in Q4, demonstrating the company's ability to sustain growth in an AI-driven market, thereby solidifying its market position.
- Significant Profit Surge: Operating income soared 78% to $38.4 million, with operating margin rising by 5 percentage points to 15%, indicating substantial improvements in cost control and profitability, which bolstered investor confidence.
- Cash Flow Growth: Operating cash flow skyrocketed 220% to $62.8 million, reflecting the company's success in financial management and operational efficiency, which is expected to provide strong support for future investments and expansions.
- Optimistic Future Outlook: The company projects revenue between $986 million and $1 billion for fiscal 2026, with earnings per share expected to reach $1.74 to $1.91, showcasing management's confidence in future growth and attracting further investor interest.
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Analyst Views on PRGS
Wall Street analysts forecast PRGS stock price to rise
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 27.670
Low
45.00
Averages
45.00
High
45.00
Current: 27.670
Low
45.00
Averages
45.00
High
45.00
About PRGS
Progress Software Corporation is a provider of artificial intelligence (AI)-powered digital experience and infrastructure software. The Company provides software products that enable its customers to develop, deploy and manage responsible AI-powered applications and digital experiences. It also offers retrieval-augmented generation (RAG) -as-a-service products, enabling organizations to automatically leverage their own proprietary business information to retrieve verifiable, accurate answers using GenAI. Its products include Sitefinity, Corticon, MOVEit, ShareFile, Podio, Kendo UI, Telerik, Kemp LoadMaster, Flowmon, WhatsUp Gold, Chef Infrastructure Management, Chef Desktop, Chef App Delivery, MarkLogic, Semaphore, OpenEdge, DataDirect Connectors, Hybrid Data Pipeline, OpenAccess, and MOVEit Cloud. Corticon is a decision automation platform that transforms user experiences by streamlining and automating complex business rules without having to code.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
PROGRESS SOFTWARE Q1 ADJUSTED EPS REACHES USD 1.6, BEATING IBES ESTIMATE OF USD 1.57
Software Progress: The adjusted software progress for Q1 is reported at USD 1.6 billion.
Comparison with Estimates: This figure exceeds the previous estimate of USD 1.57 billion.
See More
Progress Software Reports Q1 Revenue of $247.799 Million
- Company Overview: Progress Software reported a revenue of USD 247.79 million for the first quarter.
- Financial Performance: The revenue figure indicates a strong performance in the software sector for the company.
See More
Progress Software Set to Announce Q1 Earnings with Strong Estimates
- Earnings Announcement Date: Progress Software is set to announce its Q1 earnings on March 30 after market close, with a consensus EPS estimate of $1.57, reflecting a robust year-over-year growth of 19.8%, indicating sustained profitability.
- Revenue Expectations: The anticipated revenue for Q1 is $246.4 million, representing a 3.5% year-over-year increase, which highlights the company's stable performance in the market, despite a slight deceleration in growth.
- Historical Performance Review: Over the past two years, Progress Software has beaten EPS estimates 100% of the time and has surpassed revenue estimates 75% of the time, demonstrating the company's reliability in financial forecasting.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen 6 upward revisions and no downward adjustments, while revenue estimates have experienced 5 upward revisions and 1 downward revision, indicating growing analyst confidence in the company's future performance.
See More
Progress Software Reports Q1 Net Income Growth
- Net Income Growth: Progress Software reported a net income of $22.81 million for the fiscal first quarter ending February 28, 2026, translating to $0.53 per share, a significant increase from $10.95 million and $0.24 per share last year, indicating enhanced profitability.
- Non-GAAP Earnings Increase: The company’s non-GAAP earnings per share rose to $1.60, up 22% from $1.31 in the same quarter last year, reflecting strong core business performance and effective cost management strategies.
- Quarterly Revenue Growth: Revenue for the quarter reached $247.80 million, marking a 4% year-over-year increase on an actual currency basis and 2% on a constant currency basis, demonstrating stable growth and sustained customer demand in the market.
- Optimistic Future Outlook: Progress expects GAAP and non-GAAP revenue for the fiscal second quarter ending May 31, 2026, to be between $240 million and $246 million, showcasing confidence in future performance, while the updated fiscal year outlook reflects ongoing growth potential.
See More
Progress Software Corporation Q1 2026 Earnings Highlights
- Strong Financial Performance: Progress Software reported Q1 2026 revenue of $248 million, a 4% year-over-year increase, with EPS at $1.60, reflecting a 22% rise, showcasing the company's robust growth potential driven by AI innovation.
- Robust Cash Flow: Adjusted free cash flow reached $99 million, significantly up from $73 million in the prior year, indicating strong collection capabilities and enhanced operational efficiency.
- Capital Allocation Strategy: The company paid down $60 million in debt and repurchased $20 million in stock during Q1, demonstrating a firm commitment to maintaining financial health and shareholder returns.
- Optimistic Future Outlook: Management anticipates full-year 2026 revenue between $988 million and $1 billion, with an operating margin of approximately 39%, and plans to continue focusing on debt repayment and share buybacks to further reduce the net leverage ratio.
See More
Revised: PROGRESS SOFTWARE Q2 REVENUE FORECAST SET BETWEEN USD 240-246 MILLION (AMOUNT UPDATED)
- Revenue Update: Corrected revenue for Q2 is reported to be between USD 240 million and USD 246 million.
- Correction Notice: The figures provided are corrections to previously reported amounts.
See More
PROGRESS SOFTWARE Q1 ADJUSTED EPS REACHES USD 1.6, BEATING IBES ESTIMATE OF USD 1.57
Software Progress: The adjusted software progress for Q1 is reported at USD 1.6 billion.
Comparison with Estimates: This figure exceeds the previous estimate of USD 1.57 billion.
See More
Progress Software Reports Q1 Revenue of $247.799 Million
- Company Overview: Progress Software reported a revenue of USD 247.79 million for the first quarter.
- Financial Performance: The revenue figure indicates a strong performance in the software sector for the company.
See More
Progress Software Set to Announce Q1 Earnings with Strong Estimates
- Earnings Announcement Date: Progress Software is set to announce its Q1 earnings on March 30 after market close, with a consensus EPS estimate of $1.57, reflecting a robust year-over-year growth of 19.8%, indicating sustained profitability.
- Revenue Expectations: The anticipated revenue for Q1 is $246.4 million, representing a 3.5% year-over-year increase, which highlights the company's stable performance in the market, despite a slight deceleration in growth.
- Historical Performance Review: Over the past two years, Progress Software has beaten EPS estimates 100% of the time and has surpassed revenue estimates 75% of the time, demonstrating the company's reliability in financial forecasting.
- Expectation Revision Dynamics: In the last three months, EPS estimates have seen 6 upward revisions and no downward adjustments, while revenue estimates have experienced 5 upward revisions and 1 downward revision, indicating growing analyst confidence in the company's future performance.
See More
Progress Software Reports Q1 Net Income Growth
- Net Income Growth: Progress Software reported a net income of $22.81 million for the fiscal first quarter ending February 28, 2026, translating to $0.53 per share, a significant increase from $10.95 million and $0.24 per share last year, indicating enhanced profitability.
- Non-GAAP Earnings Increase: The company’s non-GAAP earnings per share rose to $1.60, up 22% from $1.31 in the same quarter last year, reflecting strong core business performance and effective cost management strategies.
- Quarterly Revenue Growth: Revenue for the quarter reached $247.80 million, marking a 4% year-over-year increase on an actual currency basis and 2% on a constant currency basis, demonstrating stable growth and sustained customer demand in the market.
- Optimistic Future Outlook: Progress expects GAAP and non-GAAP revenue for the fiscal second quarter ending May 31, 2026, to be between $240 million and $246 million, showcasing confidence in future performance, while the updated fiscal year outlook reflects ongoing growth potential.
See More
Progress Software Corporation Q1 2026 Earnings Highlights
- Strong Financial Performance: Progress Software reported Q1 2026 revenue of $248 million, a 4% year-over-year increase, with EPS at $1.60, reflecting a 22% rise, showcasing the company's robust growth potential driven by AI innovation.
- Robust Cash Flow: Adjusted free cash flow reached $99 million, significantly up from $73 million in the prior year, indicating strong collection capabilities and enhanced operational efficiency.
- Capital Allocation Strategy: The company paid down $60 million in debt and repurchased $20 million in stock during Q1, demonstrating a firm commitment to maintaining financial health and shareholder returns.
- Optimistic Future Outlook: Management anticipates full-year 2026 revenue between $988 million and $1 billion, with an operating margin of approximately 39%, and plans to continue focusing on debt repayment and share buybacks to further reduce the net leverage ratio.
See More
Revised: PROGRESS SOFTWARE Q2 REVENUE FORECAST SET BETWEEN USD 240-246 MILLION (AMOUNT UPDATED)
- Revenue Update: Corrected revenue for Q2 is reported to be between USD 240 million and USD 246 million.
- Correction Notice: The figures provided are corrections to previously reported amounts.
See More
