Progress Software: Making Progress Driven by the AI RevolutionProgress Software NASDAQ: PRGS said it has entered into an agreement to acquire Domo’s AI and data platform business in a transaction valued at a headline purchase price of $400 million, executives said on a conference call discussing the deal.
Anthony Folger, chief financial officer of Progress Software, said the company is acquiring “substantially all the assets” of Domo and assuming only certain liabilities. Progress has also agreed to pay up to $15 million of seller transaction expenses. Folger said the purchase price includes a minimum acquired cash balance of $25 million and an estimated $35 million in net present value of tax benefits, resulting in a net purchase price of about $355 million.
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Market Got It Wrong—Why Progress Software Deserves a Second LookBased on Domo’s fiscal 2026 results, Folger said the net purchase price represents a revenue multiple of “slightly more than one.” Progress plans to finance the acquisition with cash on hand and a portion of the current capacity on its revolving credit facility.
“Due to the strong deal economics, we don’t expect our pro forma net leverage ratio to be affected materially and believe it will remain under three times on a pro forma basis,” Folger said. He added that Progress intends to “deleverage quickly and aggressively” after the transaction closes.
Progress Software Stock Back in the Green After Beating ForecastsThe acquisition is subject to regulatory approvals and customary closing conditions. Folger said Progress expects the deal to close within its current fiscal year ending Nov. 30, 2026. He also said the company reiterated its third-quarter guidance “at or above the high end” of the range it provided last quarter.
Progress Points to AI and Data Platform Strategy Yogesh Gupta, chief executive officer of Progress Software, said the acquisition fits into the company’s AI product strategy by combining Domo’s cloud-native AI and data platform with Progress’ capabilities in structured and unstructured data management, data semantics and agentic retrieval-augmented generation, or RAG.
Gupta said enterprises need “context and control” to make AI effective, noting that organizational knowledge is often fragmented across systems of record, unstructured content and siloed applications.
“Ingesting, transforming, and aggregating this data is extremely difficult, and doing it at scale with security and governance is even harder,” Gupta said. “This is an area where Domo excels.”
Gupta described Domo’s platform as an intuitive, scalable and secure cloud-native AI and data platform that automates the ingestion and transformation of data from a wide range of sources. He said organizations can store data in Domo’s cloud platform or in partner cloud data warehouses such as Snowflake or Databricks.
According to Gupta, combining Domo’s offerings with the Progress Data Platform will help customers aggregate and interpret enterprise knowledge across both structured and unstructured data. He said the combined capabilities are intended to help AI agents use only the relevant subset of information needed for a task, rather than working across an overly broad data set.
“The end result is more accurate and more verifiable outcomes at dramatically lower costs,” Gupta said.
Domo Customer Base and Consumption Model Highlighted Gupta said more than 85% of Domo’s annual recurring revenue is now consumption-based, citing Domo’s previously announced results. He also said Domo has 2,400 customers and has pursued a partner strategy with cloud data warehouses.
During the question-and-answer portion of the call, Lawrence Vensko, an equity research associate at Guggenheim Securities, asked about what Progress is not taking on in the asset purchase. Folger said the assets left behind include Domo’s accumulated net operating losses and debt.
“Obviously, the debt is a significant liability, which is why we said we’re acquiring pretty much all the assets of the business and a good portion of their liabilities, excluding the debt,” Folger said.
Vensko also asked about retention rates. Gupta said Domo’s net retention and gross retention rates for its consumption-based business are “very similar to overall Progress,” and said data platform businesses tend to be sticky.
Executives Say Customer Overlap Is Limited Eric Martinuzzi, senior research analyst at Lake Street Capital Markets, asked about the prior business relationship between Progress and Domo and whether the companies had meaningful customer overlap. Gupta said there is some overlap, as is typical among enterprise software companies, but he did not characterize it as significant.
Martinuzzi also asked about potential cash proceeds for Domo shareholders. Gupta and Folger said that question was for Domo, noting that Progress is buying assets and certain liabilities, while decisions about the remaining business would be made by Domo.
Progress Declines to Detail Synergies Before Close Lucky Schreiner, vice president and research analyst at D.A. Davidson, asked about Domo’s recent growth outlook and margin profile, including potential cost synergies. Gupta declined to identify specific areas before the deal closes, but said Progress has a track record of acquiring companies that were barely break-even and bringing margins closer to Progress’ profile over time.
Schreiner also asked whether Progress plans to move the rest of Domo’s customer base to consumption pricing. Gupta said Domo has been moving customers from a seat-based licensing model to a consumption-based model for roughly two and a half to three years, but said Progress would provide more detail after the close.
Asked about confidence in driving growth given trends among business intelligence peers, Gupta said Progress sees opportunity in Domo’s consumption customer base and in combining the two companies’ products. He noted that Progress is not expecting rapid growth overall, saying the company has previously discussed expectations for approximately 2% ARR growth this year.
Gupta closed the call by saying Progress is “excited” about Domo’s AI and data platform business and expects to provide more information when the deal closes.
About Progress Software (NASDAQ:PRGS)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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Michael Micciche - Senior Vice President of Investor Relations
Anthony Folger - Executive VP, CFO & Treasurer
Yogesh Gupta - CEO, President & Director
Conference Call Participants
Lawrence Vensko - Guggenheim Securities, LLC, Research Division
Eric Martinuzzi - Lake Street Capital Markets, LLC, Research Division
Lucky Schreiner - D.A. Davidson & Co., Research Division
Nolan Bruce Jenevein - Oppenheimer & Co. Inc., Research Division
Presentation
Operator
Good day, and welcome to the Progress Software to acquire Domo's AI and Data Platform Business Call. [Operator Instructions] Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker, Mr. Mike Micciche, Senior Vice President of Investor Relations. Please go ahead.
Michael Micciche
Senior Vice President of Investor Relations
Okay. Great. Thanks, Sherry. Good afternoon, everybody, and thank you for joining us today. Yogesh Gupta, our CEO; and Anthony Folger, our CFO, are on the call with me today. As you likely saw, Progress just announced our proposed acquisition of Domo's AI and data platform business. You can find the press release on the Investor Relations section of our website at investors.progress.com, along with a supplemental slide deck.
Before we get started, we need to remind you that during this call, we may make forward-looking -- discuss forward-looking items, including our outlook perspective, financial and operating performance, corporate strategies, product plans, cost initiatives and other information that might be considered forward-looking, including the timing and potential results associated with our proposed acquisitions. This forward-looking information represents Progress Software's outlook and the potential impact of Domo's AI and data platform acquisition only as of today, and is subject to risks and uncertainties, and the actual results may differ.
SILICON SLOPES, Utah--(BUSINESS WIRE)---- $DOMO--Domo, Inc. (NASDAQ: DOMO) (“Domo” or the “Company”) today announced that its Board of Directors has unanimously approved a definitive agreement under which Progress Software Corporation (NASDAQ: PRGS) (“Progress”) will acquire substantially all of the assets and employees, excluding the Company's net operating loss (“NOL”) carryforwards, and assume certain liabilities of the Company for $400 million in cash, subject to customary purchase price adjustments.
Acquisition further strengthens the capabilities of Progress data platform offerings to provide organizations the context and control to securely turn fragmented enterprise knowledge into governed, AI-ready intelligence—improving accuracy, speed and cost.
BURLINGTON, Mass., July 22, 2026 (GLOBE NEWSWIRE) -- Progress Software (Nasdaq: PRGS), an AI infrastructure software leader, today announced that it entered into an agreement to acquire substantially all of the assets and assume certain liabilities of Domo, including its AI and data products platform.
The acquisition aligns with Progress’ strategy to deliver the context and control for AI so customers can achieve their business goals with confidence. Domo’s agentic platform for the intelligent enterprise complements and significantly broadens Progress’ data platform offerings, creating powerful synergies to deliver innovative, secure and scalable AI data readiness solutions worldwide.
“Effective AI starts with accurate, trusted data and content to provide the context for accurate and verifiable outcomes,” said Yogesh Gupta, CEO of Progress Software. “Domo is a leading AI and data platform that enables businesses to access, integrate and leverage their data at scale. Domo’s product capabilities, coupled with their team’s expertise in cloud architectures and analytics, are highly complementary to our expanding Progress data platform capabilities that significantly improve the security, governance and cost of our customers’ AI initiatives.”
Domo will add a customer base of over 2,400 businesses, as well as a global and strategic ecosystem of cloud data warehouse technology partnerships.
“We have built Domo around the simple idea that trusted data should help people make better decisions and take action,” said Josh James, founder and CEO of Domo. “The addition of our product capabilities to the Progress data platform will give customers a stronger foundation for building AI that understands their business, works from governed data and can be trusted to support meaningful decisions.”
The proposed acquisition of Domo’s AI and data platform business is another example of the continued execution of Progress’ Total Growth Strategy. Progress continues to maintain financial discipline while seeking to acquire strong businesses with products that complement its existing AI solutions portfolio, include a robust customer base with strong retention rates and solid recurring revenue, and align with its company culture.
Reiterating Guidance
Based on currently available information, Progress anticipates revenue and non-GAAP earnings per share for its fiscal third quarter will be within or above the high end of previously issued guidance provided on June 30, 2026. The company will discuss full financial results of its third quarter on a conference call on September 30, 2026.
Transaction Details
The transaction is structured as an asset purchase where Progress intends to acquire substantially all of the assets and assume certain liabilities of Domo for a cash purchase price of $400 million. The acquisition is currently expected to close within Progress’ fiscal year, ending November 30, 2026, subject to obtaining regulatory approvals and the satisfaction of other customary closing conditions as set forth in the definitive agreement.
Progress expects to finance the transaction with a combination of cash and Progress’ existing revolving credit facility.
Conference Call
Progress will host a conference call to review details of the transaction at 5 p.m. EDT today, Wednesday, July 22, 2026. A live webcast of the call will be available using this link. To access the conference call by phone, please use this link to retrieve dial-in details. Attendees must register for the conference call, and an archived version and support materials will be available on the Progress Investor Relations webpage shortly after the conference call concludes.
Advisors
Citi is serving as the exclusive financial advisor for Progress on this transaction, and DLA Piper LLP (US) is serving as Progress’ legal counsel. Jefferies LLC is serving as the exclusive financial advisor to Domo, and Goodwin Procter LLP is serving as legal counsel.
About Progress Software
Progress Software (Nasdaq: PRGS) provides the context and control organizations need to reliably extract value from AI — context drawn from an organization's data, content and workflows, and control over the security, governance and cost of their AI initiatives. Learn how hundreds of thousands of businesses, powering the work of tens of millions of professionals worldwide, realize value from trusted, enterprise-ready AI at www.progress.com.
About Domo
Domo (Nasdaq: DOMO) is an AI and Data Products platform that helps companies of all sizes leverage data and AI to drive value in today’s data-driven world. Built around our customers’ preferred data foundation, powered by our award-winning Domo.AI solution, and enriched with our partner ecosystem, the Domo platform enables users to prepare, visualize, automate, distribute, and build end-to-end data products that provide solutions across the entire data journey. From hydrating your data foundation, to building fully embedded applications that can be shared with your employees and customers, to deploying AI models across a variety of providers, Domo gives users the ability to build data products that generate measurable value for the business.
Note Regarding Forward-Looking Statements
This press release contains statements that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Progress has identified some of these forward-looking statements with words like “believe,” “may,” “could,” “would,” “might,” “should,” “expect,” “intend,” “plan,” “target,” “anticipate” and “continue,” the negative of these words, other terms of similar meaning or the use of future dates. Risks, uncertainties and other important factors that could cause actual results to differ from those expressed or implied in the forward-looking statements include: Progress’ ability to close the proposed transaction, the expected time of closing or the expected benefits therefore; uncertainties as to the effects of disruption from the acquisition of Domo making it more difficult to maintain relationships with employees, licensees, other business partners or governmental entities; other business effects, including the effects of industry, economic or political conditions outside of Progress’ control; transaction costs; actual or contingent liabilities; uncertainties as to whether anticipated synergies or tax benefits will be realized; and uncertainties as to whether Domo’s business will be successfully integrated with Progress’ business. For further information regarding risks and uncertainties associated with Progress’ business, please refer to Progress’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended November 30, 2025. Progress undertakes no obligation to update any forward-looking statements, which speak only as of the date of this press release.
Non-GAAP Financial Information
This press release contains certain non-GAAP financial measures. These measures are provided solely as supplemental information and are not intended to be considered in isolation or as a substitute for the comparable GAAP measures; these measures reflect assumptions and expected synergies from the transaction and are subject to risks and uncertainties. Progress is unable to provide a reconciliation of the projected non-GAAP measures provided herein to the relevant projected GAAP measures without unreasonable effort because certain items necessary to calculate such GAAP measures are inherently uncertain and dependent on future events.
Progress is a trademark or registered trademark of Progress Software Corporation and/or its subsidiaries or affiliates in the U.S. and other countries. Any other names contained herein may be trademarks of their respective owners.
Progress Software (PRGS - Free Report) closed the last trading session at $39.5, gaining 42.8% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $50.67 indicates a 28.3% upside potential.
The mean estimate comprises six short-term price targets with a standard deviation of $16.29. While the lowest estimate of $40.00 indicates a 1.3% increase from the current price level, the most optimistic analyst expects the stock to surge 110.1% to reach $83.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in PRGS. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why PRGS Could Witness a Solid UpsideThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 1.7%, as two estimates have moved higher compared to no negative revision.
Moreover, PRGS currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much PRGS could gain, the direction of price movement it implies does appear to be a good guide.
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Progress Software (PRGS - Free Report) . PRGS is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 7.46, while its industry has an average P/E of 19.19. PRGS's Forward P/E has been as high as 14.46 and as low as 7.37, with a median of 10.95, all within the past year.
We should also highlight that PRGS has a P/B ratio of 4. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.64. PRGS's P/B has been as high as 7.05 and as low as 3.95, with a median of 5.89, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PRGS has a P/S ratio of 1.66. This compares to its industry's average P/S of 3.78.
Finally, we should also recognize that PRGS has a P/CF ratio of 9.86. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PRGS's current P/CF looks attractive when compared to its industry's average P/CF of 14.09. PRGS's P/CF has been as high as 18.02 and as low as 9.74, with a median of 14.83, all within the past year.
These are just a handful of the figures considered in Progress Software's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PRGS is an impressive value stock right now.
State of Legal 2026 report shows how AI, automation and streamlined processes can reduce delays and strengthen client confidence
BURLINGTON, Mass., July 08, 2026 (GLOBE NEWSWIRE) -- Progress Software (Nasdaq: PRGS), the trusted provider of AI-powered digital experience and infrastructure software, today announced the release of its State of Legal 2026 benchmarking report. Based on a nationwide survey of U.S.-based lawyers conducted by Regina Corso Consulting, the report reveals that while AI adoption is now widespread across the legal industry, many firms are still working to translate that momentum into fully efficient, modernized workflows. The full report is available here.
Despite rapid uptake of AI tools, many legal teams continue to rely on manual, fragmented processes. The report finds that 85% of lawyers are already using AI for tasks such as legal research, document summarization and intake support. However, 77% say much of their work remains manual and 73% report workflows that include too many steps, highlighting a significant opportunity to better integrate AI, automation and process design to meet the demands of a digital-first, client-driven environment.
“Legal teams aren’t slow to adopt AI: 85% are already using it. The issue is that most firms are layering AI on top of broken, manual processes instead of rethinking how work gets done,” said Loren Jarrett, EVP and GM of Digital Experience, Progress Software. “Our research makes it clear that meaningful gains don’t come from adding more tools—they come from eliminating friction. Firms that standardize workflows, automate intake and build governance into their technology stack will enable themselves to unlock the benefits of AI tools to move faster, scale smarter and deliver the kind of client experience modern legal work demands.”
Key Findings from the State of Legal 2026 Report
AI adoption is widespread, but governance is still evolving: Eighty-five percent of lawyers report using AI for tasks such as legal research, document summarization, case management and intake support. However, 36% cite a lack of governance or training as an ongoing challenge as adoption scales.Automation improves work life, but adoption remains limited: While 82% say automation has improved their work lives, only 24% report that a significant portion of their daily work is automated. Integration challenges, budget constraints and security concerns remain the top barriers to broader adoption.Client intake remains a critical opportunity for improvement: Nearly half (47%) say intake takes four days or longer, even though most believe it should take two to three days or less. Additionally, 94% say faster intake would improve outcomes, and 92% say automation would enable them to take on more business.Legal productivity is constrained by inefficient processes: While lawyers are satisfied with their work, 52% say they feel effective but not efficient due to manual tasks, unnecessary handoffs and fragmented systems.Tool sprawl and inconsistency slow teams down: Eighty-four percent say inconsistent processes across teams or systems reduce efficiency, and 95% want legal technology that is simple, intuitive and free of unnecessary features. "It really comes down to understanding AI and understanding how to leverage it and how to screen it,” said Whitney Harper, Co-Founder, ADVOS legal & ADVOS Pro. “But what I firmly believe is that AI is not here to take our jobs as lawyers. If we can figure out how to harness it, we can free ourselves up to deliver incredible value, do our best work and really enjoy the practice."
As firms look to close these operational gaps, technologies like Progress® ShareFile® are helping modernize how legal work gets done. By combining secure document management, AI-powered automation and streamlined client intake, these platforms enable legal teams to reduce friction, accelerate turnaround times and deliver more consistent, streamlined client experiences.
About the Survey
The State of Legal 2026 report is based on a nationwide survey of 304 U.S.-based lawyers working in both law firms and in-house legal departments. The research explores job satisfaction, operational efficiency, client intake, technology adoption, automation, AI usage and security challenges shaping the future of legal work.
About Progress Software
Progress Software (Nasdaq: PRGS) empowers organizations to achieve transformational success in the face of disruptive change. Our software enables our customers to develop, deploy and manage responsible AI-powered applications and personalized digital experiences with agility and ease. Businesses of all sizes get a trusted provider in Progress, with the products, expertise and vision they need to turn AI disruption into a competitive advantage. Millions of developers and technologists at hundreds of thousands of organizations depend on Progress every day. Learn more at www.progress.com.
Progress and certain product names used herein are trademarks or registered trademarks of Progress Software Corporation and/or one of its subsidiaries or affiliates in the U.S. and/or other countries. See Trademarks for appropriate markings. All rights in any other trademarks contained herein are reserved by their respective owners and their inclusion does not imply an endorsement, affiliation or sponsorship as between Progress and the respective owners.
Press Contact:
Kim Baker
Progress Software
+1-800-477-6473 [email protected]
Have you evaluated the performance of Progress Software's (PRGS - Free Report) international operations for the quarter ending May 2026? Given the extensive global presence of this business software maker, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.
In today's increasingly interconnected global economy, a company's ability to tap into international markets can be a pivotal factor in shaping its overall financial health and growth trajectory. For investors, understanding a company's reliance on overseas markets has become increasingly crucial, as it offers insights into the company's sustainability of earnings, ability to tap into diverse economic cycles and overall growth potential.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
In our recent assessment of PRGS' quarterly performance, we discovered notable trends in its overseas revenue sections, which are typically modeled and scrutinized by Wall Street analysts.
The recent quarter saw the company's total revenue reaching $253.46 million, marking an improvement of 6.8% from the prior-year quarter. Next, we'll examine the breakdown of PRGS' revenue from abroad to comprehend the significance of its international presence.
Exploring PRGS' International Revenue PatternsLatin America accounted for 2.3% of the company's total revenue during the quarter, translating to $5.79 million. Revenues from this region represented a surprise of +8.02%, with Wall Street analysts collectively expecting $5.36 million. When compared to the preceding quarter and the same quarter in the previous year, Latin America contributed $5.53 million (2.2%) and $4.85 million (2%) to the total revenue, respectively.
During the quarter, Europe, Middle East and Africa contributed $70.61 million in revenue, making up 27.9% of the total revenue. When compared to the consensus estimate of $75.98 million, this meant a surprise of -7.07%. Looking back, Europe, Middle East and Africa contributed $78.38 million, or 31.6%, in the previous quarter, and $73.04 million, or 30.8%, in the same quarter of the previous year.
Of the total revenue, $14.54 million came from Asia Pacific during the last fiscal quarter, accounting for 5.7%. This represented a surprise of +33.87% as analysts had expected the region to contribute $10.86 million to the total revenue. In comparison, the region contributed $11.2 million, or 4.5%, and $12.14 million, or 5.1%, to total revenue in the previous and year-ago quarters, respectively.
Anticipated Revenues in Overseas MarketsWall Street analysts expect Progress Software to report $247.16 million in total revenue for the current fiscal quarter, indicating a decline of 1.1% from the year-ago quarter. Latin America, Europe, Middle East and Africa and Asia Pacific are expected to contribute 2.3% (translating to $5.61 million), 27.7% ($68.37 million), and 5.7% ($14.08 million) to the total revenue, respectively.
Analysts expect the company to report a total annual revenue of $994.66 million for the full year, marking an increase of 1.7% compared to last year. The expected revenue contributions from Latin America, Europe, Middle East and Africa and Asia Pacific are projected to be 2.3% ($22.6 million), 28.8% ($286.62 million) and 5.4% ($54.08 million) of the total revenue, in that order.
Final ThoughtsRelying on international markets for revenues, Progress Software faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.
In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.
At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short-term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
Progress Software, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
A Review of Progress Software's Recent Stock Market PerformanceOver the past month, the stock has gained 22.5% versus the Zacks S&P 500 composite's 0.9% decrease. The Zacks Computer and Technology sector, of which Progress Software is a part, has declined 6.1% over the same period. The company's shares have increased 44.2% over the past three months compared to the S&P 500's 13.9% increase. Over the same period, the sector has risen 22.2%
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Progress Software (PRGS - Free Report) . PRGS is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.46, which compares to its industry's average of 18.95. Over the last 12 months, PRGS's Forward P/E has been as high as 14.46 and as low as 7.37, with a median of 10.95.
Investors should also recognize that PRGS has a P/B ratio of 4. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.48. Within the past 52 weeks, PRGS's P/B has been as high as 7.05 and as low as 3.95, with a median of 5.89.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PRGS has a P/S ratio of 1.6. This compares to its industry's average P/S of 3.41.
Finally, our model also underscores that PRGS has a P/CF ratio of 9.86. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PRGS's P/CF compares to its industry's average P/CF of 13.71. PRGS's P/CF has been as high as 18.02 and as low as 9.74, with a median of 14.83, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Progress Software is likely undervalued currently. And when considering the strength of its earnings outlook, PRGS sticks out as one of the market's strongest value stocks.
Progress Software (PRGS - Free Report) closed the last trading session at $39.16, gaining 22.5% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $49.67 indicates a 26.8% upside potential.
The average comprises six short-term price targets ranging from a low of $34.00 to a high of $83.00, with a standard deviation of $17.24. While the lowest estimate indicates a decline of 13.2% from the current price level, the most optimistic estimate points to a 112% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
But, for PRGS, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in PRGSThere has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The Zacks Consensus Estimate for the current year has increased 1.2% over the past month, as one estimate has gone higher compared to no negative revision.
Moreover, PRGS currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much PRGS could gain, the direction of price movement it implies does appear to be a good guide.
U.S. stocks were lower, with the Nasdaq Composite falling around 200 points on Wednesday.
Shares of Progress Software Corp (NASDAQ:PRGS) rose sharply after the company posted better-than-expected second-quarter results.
Progress Software reported quarterly earnings of $1.62 per share which beat the analyst consensus estimate of $1.49 per share. The company reported quarterly sales of $253.465 million which beat the analyst consensus estimate of $242.741 million.
Progress Software shares jumped 11.7% to $37.52 on Wednesday.
Here are some other big stocks recording gains in today’s session.
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Progress Software (PRGS +19.12%) stock is surging in Wednesday's trading, having risen 17.9% as of 11 a.m. ET. The S&P 500 was flat% at the same point in the daily session, and the Nasdaq Composite was down 0.4%.
After yesterday's market close, Progress published results for the second quarter of its current fiscal year -- which ended May 31. The company posted sales and earnings for the period that beat Wall Street's expectations, and investors are also liking the software specialist's forward guidance.
Image source: Getty Images.
Progress Software beats Wall Street's fiscal Q2 targets Progress Software recorded non-GAAP (adjusted) earnings of $1.62 on sales of $253.5 million in fiscal Q2, beating the average Wall Street analyst estimate's call for per-share earnings of $1.49 on sales of $242.74 million. Sales unexpectedly rose 6.7% year over year in the quarter, and net income surged 24% compared to the prior-year period. The company saw strong demand across its product portfolio, with AI-powered offerings helping to lift sales and earnings performance in the quarter.
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What's next for Progress Software? Along with its fiscal Q2 report, Progress raised its earnings guidance for the fiscal year. The company now expects sales for the period to come in between $990 million and $1.02 billion -- up from its previous guidance for sales between $988 million and $1 billion. Meanwhile, adjusted earnings per share are projected to be between $6.09 and $6.21 -- with the midpoint of its guidance reflecting an $0.18 per share increase over its previous target.
The company also hiked its targets for adjusted free cash flow to between $271 million and $283 million for the year and unlevered free cash flow to between $323 million and $334 million. With Progress Software posting better-than-expected fiscal Q2 results and forward guidance and investors rotating cash back into software stocks, the company's valuation is getting a big boost today.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Key Takeaways PRGS beat Q2 revenues, EPS and cash flow expectations and raised its fiscal 2026 outlook.Management tied AI demand to data, workflow automation and infrastructure management products.PRGS said deal timing helped Q2 results, while ARR remains a cleaner view of momentum. Progress Software Corporation (PRGS - Free Report) used its second-quarter call to press a consistent message: its mix of data, workflow and infrastructure products becomes more relevant as enterprises move AI projects into production. Management framed that shift as a source of resilience rather than disruption.
The setup mattered because Progress also raised its full-year outlook after another quarter of top-line outperformance, while analysts use the Q&A to test how much of the upside is timing-driven and how much reflects a firmer demand backdrop.
Progress Ties AI to Core PlatformsChief executive officer Yogesh Gupta said the company’s data platform, workflow automation and infrastructure management products sit in the foundational layers enterprises need to make AI useful, governed and cost-effective. He emphasized that context and control are becoming more important as customers seek reliable outcomes from AI deployments.
Gupta pointed to especially strong performance in data platform products, saying customers are increasingly using business data to provide context for AI. He also highlighted demand across infrastructure management and content-driven workflow automation as evidence that the portfolio is benefiting broadly, not through a single product cycle.
He added a fresh product proof point by citing the launch of Chef Enterprise Management for NVIDIA’s DGX Spark systems. Management presented that partnership as a way to extend Progress’s infrastructure management role into AI deployments at the edge and in secure enterprise environments.
PRGS Posts a Broad-Based BeatChief financial officer Anthony Folger said second-quarter results exceeded expectations across revenues, earnings and cash flow. Reported non-GAAP EPS of $1.62 and revenues of $253 million beat the Zacks Consensus Estimate of $1.49 and $242 million, respectively. The results reflected an EPS surprise of 8.72% and a revenue surprise of 4.87%, according to the provided Zacks data.
Progress Software Corporation Price, Consensus and EPS SurpriseOperationally, ARR reached $868 million, up 2% year over year in constant currency, while net retention rate improved to 100% from 99% in the prior quarter. Management said that the growth was broad-based across OpenEdge, LoadMaster, WhatsUp Gold, MOVEit, DevTools and ShareFile.
The quarter’s top-line strength was led by DataDirect, Chef, MarkLogic and LoadMaster. Folger also noted that operating income totaled $103 million on a non-GAAP basis, producing a 40% operating margin, as incremental margins remained strong despite higher variable costs tied to stronger revenues.
Progress Lifts Full-Year TargetsManagement raised its fiscal 2026 outlook after what it called an exceptionally strong first half. Progress now expects full-year revenues of $990 million to just over $1 billion and non-GAAP EPS of $6.09 to $6.21, up from the prior range of $5.91-$6.03.
Folger said the company also lifted adjusted free cash flow guidance to $271 million to $283 million and unlevered free cash flow guidance to $323 million to $334 million. For the third quarter, Progress forecasts revenues of $244 million to $250 million and non-GAAP EPS of $1.53 to $1.59.
The tone around guidance was upbeat but measured. Folger reminded investors that first-half revenues benefited in part from deal timing, and he said ARR remains the cleaner read on underlying top-line momentum, which management still described as running around the 2% level.
PRGS Improves Flexibility on the Balance SheetCash generation was another focus. Adjusted free cash flow rose to $79.2 million in the quarter from $37.1 million a year earlier, while first-half adjusted free cash flow reached $178.1 million. Management tied that improvement to stronger collections and better operating performance.
Progress ended the quarter with $103 million in cash and $1.3 billion of total debt. Net leverage improved to 2.9x from 3.4x at the start of the fiscal year, and the company paid down another $50 million of debt in the quarter after addressing its 2026 convertible maturity in April.
Capital allocation remains centered on deleveraging first, with buybacks as a secondary lever when valuation is attractive. Folger said the company now expects roughly $220 million of net debt repayment and about $75 million of repurchases this year.
Progress Faces Timing Questions in Q&A
A Guggenheim analyst asked whether weaker-than-expected third-quarter revenue guidance signaled softer SaaS momentum. Folger rejected that view, arguing that some deals expected in the third quarter close in the second quarter instead, with more than half of the second-quarter beat tied to timing.
That same exchange also gave management a chance to address ShareFile normalization. Folger said that prior cleanup work had distorted SaaS trends, but the latest quarter looked cleaner and stronger, with less residual noise from post-acquisition adjustments.
An Oppenheimer analyst pressed Gupta on how much of the portfolio is aligned with AI use cases. Gupta said that the data-plus-content business accounts for more than two-thirds of total revenues and argued that growth there is being driven primarily by capacity and consumption rather than pricing.
PRGS Keeps M&A Discipline in ViewM&A also resurfaced as a strategic theme. Gupta said that seller expectations are beginning to move closer to market reality, a change he described as visible across multiple conversations with potential targets.
He reiterated that Progress remains comfortable pursuing acquisitions on the scale of ShareFile, adding that future AI relevance remains a core screen in target selection. Gupta also indicated that management currently expects any deal to fit within existing revolver capacity.
Taken together, the call left a picture of a company leaning into AI adjacency while still emphasizing discipline. The message was less about a near-term acceleration story than about reinforcing durability, balance-sheet repair and selective expansion.
Zacks Signals Remain Mixed but ConstructivePRGS carries a Zacks Rank #3 (Hold), alongside a Value Score of A, Growth Score of B, Momentum Score of D and VGM Score of A. In Zacks’ framework, the Rank is the first screen, while stronger Style Scores indicate more attractive value, growth, momentum or blended characteristics over the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
That combination points to a stock with favorable value and overall style characteristics, but with a more neutral earnings revision profile and weaker momentum signal at present. Zacks also notes that Rank can change as estimate revisions move after a quarterly report, so the current setup should be viewed as a snapshot rather than a fixed read on future performance.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of PRGS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Progress Software (PRGS - Free Report) came out with quarterly earnings of $1.62 per share, beating the Zacks Consensus Estimate of $1.49 per share. This compares to earnings of $1.4 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +8.97%. A quarter ago, it was expected that this business software maker would post earnings of $1.57 per share when it actually produced earnings of $1.6, delivering a surprise of +1.91%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Progress Software, which belongs to the Zacks Computer - Software industry, posted revenues of $253.47 million for the quarter ended May 2026, surpassing the Zacks Consensus Estimate by 4.87%. This compares to year-ago revenues of $237.35 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Progress Software shares have lost about 21.2% since the beginning of the year versus the S&P 500's gain of 8.7%.
What's Next for Progress Software?While Progress Software has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Progress Software was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.45 on $249.35 million in revenues for the coming quarter and $5.98 on $992.23 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Software is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Cadence Design Systems (CDNS - Free Report) , has yet to report results for the quarter ended June 2026.
This maker of hardware and software products for validating chip designs is expected to post quarterly earnings of $2.05 per share in its upcoming report, which represents a year-over-year change of +24.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Cadence Design Systems' revenues are expected to be $1.58 billion, up 23.6% from the year-ago quarter.
BURLINGTON, Mass., June 30, 2026 (GLOBE NEWSWIRE) -- Progress Software (Nasdaq: PRGS), a member of the Russell 2000 Index and a trusted provider of AI-powered digital experience and infrastructure software, today announced its financial results for the fiscal second quarter ended May 31, 2026.
The company’s earnings release and a supplemental slide presentation can be accessed via the Investor Events & Presentations link on the Progress Investor Relations webpage. Progress will host a conference call today at 5:00 p.m. Eastern Time to discuss its results and outlook.
Conference Call Details
A live webcast of the call will be available at this link.To access the conference call by phone, use this link to retrieve dial-in details. Participants are encouraged to dial in 15 minutes before the scheduled start time.A replay of the conference call and supporting materials will be available on the Progress Investor Relations webpage following the live event.
About Progress Software
Progress Software (Nasdaq: PRGS) empowers organizations to achieve transformational success in the face of disruptive change. Our software enables our customers to develop, deploy and manage responsible AI-powered applications and personalized digital experiences with agility and ease. Businesses of all sizes get a trusted provider in Progress, with the products, expertise and vision they need to turn AI disruption into a competitive advantage. Millions of developers and technologists at hundreds of thousands of organizations depend on Progress every day. Learn more at www.progress.com.
Progress is a trademark or registered trademark of Progress Software Corporation and/or its subsidiaries or affiliates in the U.S. and other countries. Any other names contained herein may be trademarks of their respective owners.
Progress Chef brings enterprise-grade secure configuration management and governance to fleets of desktop AI supercomputers at scale
BURLINGTON, Mass., June 30, 2026 (GLOBE NEWSWIRE) -- Progress Software (Nasdaq: PRGS), the trusted provider of AI-powered digital experience and infrastructure software, today announced that its Progress® Chef® platform now delivers enterprise lifecycle management and configuration capabilities for NVIDIA DGX Spark, enabling IT teams to securely provision, monitor and manage the desktop AI supercomputer at scale.
NVIDIA highlighted Progress Chef’s role in enabling enterprise management for DGX Spark earlier this month in its developer blog.
“DGX Spark is bringing powerful AI computing out of the data center and into the hands of developers across the enterprise,” said Sundar Subramanian, Executive Vice President and General Manager, Infrastructure Management at Progress Software. “As this new class of infrastructure scales, organizations must maintain confidence that every system remains secure, compliant and aligned with its intended state. Progress Chef provides the automation and governance needed to move quickly without losing operational control.”
NVIDIA DGX Spark delivers petaflop-class AI performance in a compact desktop system, combining advanced hardware with the NVIDIA AI software stack. Designed to put AI supercomputing directly in the hands of developers, DGX Spark enables teams to build, fine-tune and run AI models locally. As these systems expand across offices, research facilities, edge locations and regulated environments, enterprises must manage them with the same rigor as other critical infrastructure. NVIDIA identified Progress Chef as an enterprise manageability partner supporting DGX Spark deployments.
Progress Chef enables IT and platform engineering teams to integrate DGX Spark into existing infrastructure operations and automate key lifecycle stages, including:
Consistent configuration: Establish and continuously maintain approved system configurationsFleet-wide visibility: Monitor system health, software inventory and configuration postureControlled maintenance: Orchestrate updates and operational changes across staged cohortsContinuous compliance: Detect configuration drift and validate adherence to security policiesGoverned automation: Enforce role-based access, approvals and auditable workflowsIncident response: Automate diagnostics and evidence collection across distributed systemsLifecycle management: Standardize processes from deployment through retirement NVIDIA DGX Spark Enterprise Manageability provides an operational framework spanning procurement, provisioning, monitoring, maintenance, incident response and retirement. Its agentless SSH execution model and standardized JSON output are designed to integrate with enterprise orchestration, monitoring, CMDB and security workflows.
Progress Chef complements this framework by providing continuous convergence and governed orchestration across the fleet. Organizations can group systems into cohorts, introduce changes in controlled stages, detect drift and validate outcomes while preserving the flexibility developers need to experiment and innovate.
The support for NVIDIA DGX Spark further expands Progress’ infrastructure management capabilities into a fast-growing class of persistent AI infrastructure. It underscores Progress’ broader strategy to help organizations develop, deploy and manage AI securely and responsibly across their data, digital experiences and underlying infrastructure.
Pricing and Availability
Progress Chef Enterprise Management for NVIDIA DGX Spark is available immediately with an introductory pricing of $189 per year per system. For more information, visit Manage NVIDIA DGX Spark as Enterprise Infrastructure with Chef
About Progress Software
Progress Software (Nasdaq: PRGS) empowers organizations to achieve transformational success in the face of disruptive change. Our software enables customers to develop, deploy and manage responsible AI-powered applications and personalized digital experiences with agility and ease. Businesses of all sizes rely on Progress for the products, expertise and vision they need to turn AI disruption into a competitive advantage. Millions of developers and technologists at hundreds of thousands of organizations depend on Progress every day. Learn more at www.progress.com.
Progress, Chef and certain product names used herein are trademarks or registered trademarks of Progress Software Corporation and/or one of its subsidiaries or affiliates in the U.S. and/or other countries. See Trademarks for appropriate markings. All rights in any other trademarks contained herein are reserved by their respective owners and their inclusion does not imply an endorsement, affiliation or sponsorship as between Progress and the respective owners.
Press Contact:
Jeff Young
Progress Software
+1-800-477-6473 [email protected]
Progress Software (PRGS) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.
BOSTON--(BUSINESS WIRE)-- #AI--Applause, the global leader in managed software testing services and digital quality, today announced it has helped Progress Software reduce accessibility issues in its Progress® ShareFile® client collaboration platform by more than 60% year over year. Since 2023, Applause has supported the ShareFile team with expert-led design reviews, testing with assistive technology users, empathy sessions, AI-powered code evaluations, detailed reports, an internal accessibility sup.
Progress Software Corporation (NASDAQ:PRGS) will release earnings for its second quarter after the closing bell on Tuesday, June 30.
Analysts expect the Burlington, Massachusetts-based company to report quarterly earnings of $1.49 per share, up from $1.40 per share in the year-ago period. The consensus estimate for Progress Software’s quarterly revenue is $242.74 million. It reported $237.35 million last year, according to Benzinga Pro.
On March 30, Progress Software reported better-than-expected earnings for the first quarter.
Shares of Progress Software rose 4.3% to close at $28.84 on Tuesday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying PRGS stock? Here’s what analysts think:
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BURLINGTON, Mass., June 16, 2026 (GLOBE NEWSWIRE) -- Progress Software (Nasdaq: PRGS), a small-cap growth and value Russell 2000 stock, today announced that it will release financial results for its fiscal second quarter of 2026 after the market close on Tuesday, June 30, 2026. Progress will host a conference call to review and discuss the results at 5:00 p.m. ET the same day. The company’s second quarter of fiscal year 2026 ended on May 31, 2026.
Conference Call Details
A live webcast of the call will be available using this link.
To access the conference call by phone, please use this link to retrieve dial-in details. To avoid delays, we encourage participants to dial into the conference call 15 minutes ahead of the scheduled start time.
An archived version of the conference call and supporting materials will be available on the Progress Investor Relations webpage after the live conference call.
About Progress Software
Progress Software (Nasdaq: PRGS) empowers organizations to achieve transformational success in the face of disruptive change. Our software enables our customers to develop, deploy and manage responsible AI-powered applications and personalized digital experiences with agility and ease. Businesses of all sizes get a trusted provider in Progress, with the products, expertise and vision they need to turn AI disruption into a competitive advantage. Millions of developers and technologists at hundreds of thousands of organizations depend on Progress every day. Learn more at www.progress.com.
Progress and certain product names used herein are trademarks or registered trademarks of Progress Software Corporation and/or one of its subsidiaries or affiliates in the U.S. and/or other countries. See Trademarks for appropriate markings. All rights in any other trademarks contained herein are reserved by their respective owners and their inclusion does not imply an endorsement, affiliation or sponsorship as between Progress and the respective owners.
Progress Software (PRGS - Free Report) has been beaten down lately with too much selling pressure. While the stock has lost 34% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Here's Why PRGS Could Experience a TurnaroundThe RSI reading of 24.55 for PRGS is an indication that the heavy selling could be in the process of exhausting itself, so the stock could bounce back in a quest for reaching the old equilibrium of supply and demand.
The RSI value is not the only factor that indicates a potential turnaround for the stock in the near term. On the fundamental side, there has been strong agreement among the sell-side analysts covering the stock in raising earnings estimates for the current year. Over the last 30 days, the consensus EPS estimate for PRGS has increased 1.3%. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, PRGS currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Pegasystems (NASDAQ:PEGA – Get Free Report) and Progress Software (NASDAQ:PRGS – Get Free Report) are both computer and technology companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.
Profitability This table compares Pegasystems and Progress Software’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Pegasystems 22.54% 38.86% 18.27% Progress Software 8.61% 43.67% 8.60% Analyst Recommendations This is a summary of recent ratings and recommmendations for Pegasystems and Progress Software, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Pegasystems 0 2 9 1 2.92 Progress Software 1 1 5 0 2.57 Pegasystems currently has a consensus target price of $67.60, suggesting a potential upside of 59.85%. Progress Software has a consensus target price of $52.50, suggesting a potential upside of 109.25%. Given Progress Software’s higher probable upside, analysts clearly believe Progress Software is more favorable than Pegasystems.
Earnings & Valuation This table compares Pegasystems and Progress Software”s revenue, earnings per share and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Pegasystems $1.75 billion 4.09 $393.44 million $2.13 19.85 Progress Software $977.83 million 1.08 $73.13 million $1.95 12.87 Pegasystems has higher revenue and earnings than Progress Software. Progress Software is trading at a lower price-to-earnings ratio than Pegasystems, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership 46.9% of Pegasystems shares are held by institutional investors. 49.7% of Pegasystems shares are held by insiders. Comparatively, 3.4% of Progress Software shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Volatility and Risk Pegasystems has a beta of 1.09, indicating that its stock price is 9% more volatile than the S&P 500. Comparatively, Progress Software has a beta of 0.76, indicating that its stock price is 24% less volatile than the S&P 500.
Summary Pegasystems beats Progress Software on 13 of the 15 factors compared between the two stocks.
About Pegasystems (Get Free Report)
Pegasystems Inc. develops, markets, licenses, hosts, and supports enterprise software in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and the Asia-Pacific. The company provides Pega Infinity, a software portfolio comprising of Pega Customer Decision Hub, a real-time AI-powered decision engine to enhance customer acquisition and experiences across inbound, outbound, and paid media channels; Pega Customer Service to anticipate customer needs, connect customers to people and systems, and automate customer interactions to evolve the customer service experience, as well as to allow enterprises to deliver interactions across channels and enhance employee productivity; and Pega Platform, an intelligent automation software for increasing efficiency of clients’ processes and workflows. It also offers Situational Layer Cake that organizes logic into layers that map to the unique dimensions of a client’s business, such as customer types, lines of business, geographies, etc.; Pega Express Methodology and low code that connects enterprise data and systems to customer experience channels; Pega Cloud that allows clients to develop, test, and deploy applications; Pega Catalyst, which helps clients to transform and prototype their customer journeys; Pega Academy, which offers instructor-led and online training to its employees, clients, and partners; and global service assurance and client support services. It primarily markets its software and services to financial services, healthcare, communications and media, government, insurance, manufacturing and high tech, and consumer services markets through a direct sales force, as well as partnerships with technology providers and application developers. Pegasystems Inc. was incorporated in 1983 and is headquartered in Cambridge, Massachusetts.
About Progress Software (Get Free Report)
Progress Software Corporation develops, deploys, and manages business applications in the United States and internationally. The company offers OpenEdge, an application development platform for running business-critical applications; Chef, a DevOps/DevSecOps automation software; Developer Tools that consists of software development tooling collection, including .NET and JavaScript UI components for web, desktop and mobile applications, reporting and report management tools, and automated testing and mocking tools; Kemp LoadMaster, an application delivery and security product offering cloud-native, and virtual and hardware load balancers; and Sitefinity, a digital experience platform foundation delivering intelligent and ROI-driving tools for marketers. It also provides MOVEit, a managed file transfer software for managing and controlling the movement of sensitive files and securing them both at-rest and in-transit; DataDirect, a secure data connectivity tools for Relational, NoSQL, Big Data and SaaS data sources; WhatsUp Gold, a network infrastructure monitoring software providing complete visibility of all network devices, servers, virtual machines, and cloud and wireless environments to find and fix network problems; Flowmon, a network security and visibility product with automated response across hybrid cloud ecosystems; Corticon, a decision automation platform to transform user experiences by streamlining and automating complex business rules; MarkLogic, a data agility platform to connect data and metadata; and Semaphore, a Semantic AI platform. The company offers project management, implementation, custom software development, programming, and other services, as well as web-enable applications; and training services. It sells its products to end users, independent software vendors, original equipment manufacturers, system integrators, value added resellers, and distributors. The company was founded in 1981 and is headquartered in Burlington, Massachusetts.
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Allspring Global Investments Holdings LLC lessened its holdings in shares of Progress Software Corporation (NASDAQ:PRGS – Free Report) by 16.1% during the 4th quarter, according to its most recent disclosure with the SEC. The institutional investor owned 988,572 shares of the software maker’s stock after selling 190,144 shares during the quarter. Allspring Global Investments Holdings LLC owned about 2.30% of Progress Software worth $40,601,000 as of its most recent filing with the SEC.
Several other hedge funds and other institutional investors have also made changes to their positions in the business. Qube Research & Technologies Ltd purchased a new position in Progress Software in the 3rd quarter valued at approximately $16,324,000. Marshall Wace LLP grew its stake in Progress Software by 732.6% during the 3rd quarter. Marshall Wace LLP now owns 357,384 shares of the software maker’s stock worth $15,700,000 after purchasing an additional 314,459 shares in the last quarter. Diamond Hill Capital Management Inc. increased its holdings in Progress Software by 145.3% during the 3rd quarter. Diamond Hill Capital Management Inc. now owns 464,598 shares of the software maker’s stock worth $20,410,000 after purchasing an additional 275,205 shares during the period. Goldman Sachs Group Inc. raised its position in Progress Software by 75.6% in the 1st 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 in the last quarter. Finally, LSV Asset Management raised its position in Progress Software by 183.0% in the 3rd quarter. LSV Asset Management now owns 362,000 shares of the software maker’s stock valued at $15,903,000 after purchasing an additional 234,100 shares in the last quarter.
Analysts Set New Price Targets PRGS has been the subject of a number of analyst reports. DA Davidson lowered their price objective on Progress Software from $70.00 to $50.00 and set a “buy” rating for the company in a research report on Wednesday, March 25th. Oppenheimer reduced their target price on shares of Progress Software from $70.00 to $57.00 and set an “outperform” rating on the stock in a report on Tuesday. Weiss Ratings upgraded shares of Progress Software from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Wednesday. Jefferies Financial Group dropped their price objective on shares of Progress Software from $45.00 to $34.00 and set a “hold” rating on the stock in a research report on Tuesday. Finally, Citigroup reduced their price objective on shares of Progress Software from $60.00 to $46.00 and set a “buy” rating on the stock in a report on Wednesday. Five equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $52.50.
Read Our Latest Analysis on PRGS
Insider Buying and Selling at Progress Software In other news, CFO Anthony Folger sold 6,000 shares of the company’s stock in a transaction dated Tuesday, February 3rd. The shares were sold at an average price of $40.00, for a total value of $240,000.00. Following the completion of the sale, the chief financial officer directly owned 48,802 shares of the company’s stock, valued at approximately $1,952,080. This represents a 10.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Sundar Subramanian sold 1,600 shares of the stock in a transaction dated Wednesday, March 11th. The stock was sold at an average price of $38.28, for a total transaction of $61,248.00. Following the sale, the executive vice president owned 15,542 shares of the company’s stock, valued at $594,947.76. This trade represents a 9.33% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 30,546 shares of company stock valued at $1,171,546. 3.40% of the stock is owned by insiders.
Progress Software Stock Up 2.7% Shares of NASDAQ PRGS opened at $25.76 on Friday. The business has a 50-day moving average price of $36.72 and a 200 day moving average price of $40.84. The stock has a market cap of $1.08 billion, a PE ratio of 13.21, a price-to-earnings-growth ratio of 1.07 and a beta of 0.76. The company has a quick ratio of 0.49, a current ratio of 0.47 and a debt-to-equity ratio of 1.97. Progress Software Corporation has a 52-week low of $23.82 and a 52-week high of $65.50.
Progress Software (NASDAQ:PRGS – Get Free Report) last released its quarterly earnings results on Monday, March 30th. The software maker reported $1.60 EPS for the quarter, topping the consensus estimate of $1.57 by $0.03. The company had revenue of $248.00 million for the quarter, compared to analyst estimates of $246.40 million. Progress Software had a return on equity of 43.67% and a net margin of 8.61%.The firm’s revenue was up 4.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.31 earnings per share. Equities research analysts forecast that Progress Software Corporation will post 4.01 earnings per share for the current year.
About Progress Software (Free Report)
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.
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Have you evaluated the performance of Progress Software's (PRGS - Free Report) international operations for the quarter ending February 2026? Given the extensive global presence of this business software maker, analyzing the patterns in international revenues is crucial for understanding its financial strength and potential for growth.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
International market involvement serves as insurance against economic downturns at home and enables engagement with economies that are growing more quickly. Still, this move toward diversification is not without its challenges, as it involves navigating through the fluctuations of currencies, geopolitical threats, and the distinctive nature of various markets.
Upon examining PRGS' recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.
The company's total revenue for the quarter amounted to $247.8 million, showing rise of 4.1%. We will now explore the breakdown of PRGS' overseas revenue to assess the impact of its international operations.
Trends in PRGS' Revenue from International MarketsLatin America accounted for 2.2% of the company's total revenue during the quarter, translating to $5.53 million. Revenues from this region represented a surprise of +3.29%, with Wall Street analysts collectively expecting $5.35 million. When compared to the preceding quarter and the same quarter in the previous year, Latin America contributed $5.54 million (2.2%) and $5.05 million (2.1%) to the total revenue, respectively.
Europe, Middle East and Africa generated $78.38 million in revenues for the company in the last quarter, constituting 31.6% of the total. This represented a surprise of +11.81% compared to the $70.1 million projected by Wall Street analysts. Comparatively, in the previous quarter, Europe, Middle East and Africa accounted for $72.59 million (28.7%), and in the year-ago quarter, it contributed $66.94 million (28.1%) to the total revenue.
Of the total revenue, $11.2 million came from Asia Pacific during the last fiscal quarter, accounting for 4.5%. This represented a surprise of -28.13% as analysts had expected the region to contribute $15.59 million to the total revenue. In comparison, the region contributed $16.15 million, or 6.4%, and $11.37 million, or 4.8%, to total revenue in the previous and year-ago quarters, respectively.
International Revenue PredictionsWall Street analysts expect Progress Software to report $241.7 million in total revenue for the current fiscal quarter, indicating an increase of 1.8% from the year-ago quarter. Latin America, Europe, Middle East and Africa and Asia Pacific are expected to contribute 2.2% (translating to $5.23 million), 28.3% ($68.46 million), and 6.3% ($15.23 million) to the total revenue, respectively.
For the full year, the company is projected to achieve a total revenue of $992.23 million, which signifies a rise of 1.5% from the last year. The share of this revenue from various regions is expected to be: Latin America at 2.2% ($21.62 million), Europe, Middle East and Africa at 28.6% ($283.27 million), and Asia Pacific at 6.4% ($63.02 million).
Wrapping UpThe dependency of Progress Software on global markets for its revenues presents a mix of potential gains and hazards. Thus, monitoring the trends in its overseas revenues can be a key indicator for predicting the firm's future performance.
In an era of growing international ties and escalating geopolitical disputes, financial analysts on Wall Street pay keen attention to these developments to fine-tune their earnings estimations for businesses operating across borders. It's important to note, however, that a range of additional variables, like a company's local market status, also play a crucial role in shaping these forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
The Zacks Rank, our proprietary stock rating mechanism, demonstrates a notable performance history confirmed through external audits. It effectively utilizes the power of earnings estimate revisions to act as a predictor of a stock's price performance in the near term.
At the moment, Progress Software has a Zacks Rank #2 (Buy), signifying that it may outperform the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Reviewing Progress Software's Recent Stock Price TrendsThe stock has witnessed a decline of 34.8% over the past month versus the Zacks S&P 500 composite's a decrease of 3.3%. In the same interval, the Zacks Computer and Technology sector, to which Progress Software belongs, has registered a decrease of 2.5%. Over the past three months, the company's shares saw a decrease of 39.2%, while the S&P 500 declined by 3.7%. In comparison, the sector experienced a decline of 6.3% during this timeframe.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Progress Software (PRGS - Free Report) is a stock many investors are watching right now. PRGS is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.46, while its industry has an average P/E of 20.46. Over the past 52 weeks, PRGS's Forward P/E has been as high as 14.46 and as low as 7.37, with a median of 10.95.
Another notable valuation metric for PRGS is its P/B ratio of 4. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.89. Within the past 52 weeks, PRGS's P/B has been as high as 7.05 and as low as 3.95, with a median of 5.89.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PRGS has a P/S ratio of 1.21. This compares to its industry's average P/S of 3.48.
Finally, our model also underscores that PRGS has a P/CF ratio of 9.86. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.55. Within the past 12 months, PRGS's P/CF has been as high as 18.02 and as low as 9.74, with a median of 14.83.
These are just a handful of the figures considered in Progress Software's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PRGS is an impressive value stock right now.
New office at Embassy Tech Village reinforces the company’s long-term
commitment to India’s tech talent with a focus on AI-led innovation
BURLINGTON, Mass., April 14, 2026 (GLOBE NEWSWIRE) -- Progress Software (Nasdaq: PRGS), the trusted provider of AI-powered digital experience and infrastructure software, today announced the relocation and expansion of its Bengaluru office, marking a milestone in the growth of its India Global Capability Center (GCC). The move reflects the increasing strategic importance of India in Progress’ global AI innovation, talent and growth plans and underscores the company’s long-term investment in scaling high-impact engineering, product development, sales, customer success, marketing and operations teams.
Located at Embassy Tech Village, one of Bengaluru’s premier technology hubs, the facility is purpose-built to enhance collaboration, accelerate AI-led innovation and support the company’s future expansion within the region’s thriving technology ecosystem.
“India is a critical pillar of Progress’ global growth and innovation strategy,” said Yogesh Gupta, CEO, Progress Software. “Our expanded Bengaluru office underscores our confidence in India’s deep technology talent and our commitment to building a world-class global capability center that plays a central role in advancing our AI-powered product portfolio. This investment enables our teams to collaborate more closely, innovate faster and deliver greater value to customers worldwide.”
Progress’ India operations have grown steadily in scale and scope, with offices in Bengaluru, Hyderabad and New Delhi driving innovation across AI, data platform, digital experience and infrastructure management. Alongside its product and engineering teams, Progress has built a strong and growing base of customer‑facing talent in India that plays a critical role in the company’s global success. Today, nearly 25% of Progress’ India workforce supports global sales, customer support, customer success and marketing functions, serving customers worldwide. All these teams play an essential role in Progress’ mission to power responsible AI-driven experiences and modern digital infrastructure for businesses around the world.
The expanded office strengthens Progress’ presence within Bengaluru’s globally recognized technology ecosystem. As part of its commitment to the region, Progress is also partnering with The Bodhi Tree Foundation, an organization creating meaningful social impact by connecting philanthropists, NGOs, social innovators and beneficiaries. This initiative includes a donation of electric wheelchairs to support those in need and reflects Progress’ ongoing contribution to advancing the communities in which it operates.
About Progress Software
Progress Software (Nasdaq: PRGS) empowers organizations to achieve transformational success in the face of disruptive change. Our software enables customers to develop, deploy and manage responsible AI-powered applications and personalized digital experiences with agility and ease. Businesses of all sizes rely on Progress for the products, expertise and vision they need to turn AI disruption into a competitive advantage. Millions of developers and technologists at hundreds of thousands of organizations depend on Progress every day. Learn more at www.progress.com.
Progress is a trademark or registered trademark of Progress Software Corporation and/or one of its subsidiaries or affiliates in the U.S. and other countries. Any other trademarks contained herein are the property of their respective owners.
Press Contact:
Kim Baker
Progress Software
+1-800-477-6473 [email protected]
Investors with an interest in Computer - Software stocks have likely encountered both Progress Software (PRGS) and Intuit (INTU). But which of these two companies is the best option for those looking for undervalued stocks?
Report showcases a people‑first culture, measurable global community impact and continued advancements toward long‑term sustainability goals that contributed to multiple Best Workplace honors
BURLINGTON, Mass., April 21, 2026 (GLOBE NEWSWIRE) -- Progress Software (Nasdaq: PRGS), the trusted provider of AI-powered digital experience and infrastructure software, today announced the release of its 2025 Corporate Social Responsibility (CSR) report. The annual report highlights the company’s dedication to cultivating a people-first workplace, supporting charitable initiatives and advancing sustainability efforts. These commitments have also contributed to recent workplace recognitions including The Boston Globe’s Top Places to Work, the Great Place To Work certification in India and the Employer Branding Awards in Bulgaria. View the full report.
“We are incredibly proud of what our teams accomplished in 2025 as we worked to create meaningful, lasting impact for our global communities and our planet,” said Yogesh Gupta, CEO, Progress Software. “This CSR report reflects both our progress and ongoing commitment to responsible, sustainable practices across our business. We remain steadfast in our mission to lead with purpose and deliver positive change for the world around us.”
Key highlights from the 2025 CSR report include:
Our People: Engagement, Growth and Wellbeing
Professional development and AI enablement: Progress expanded opportunities for employee development, including the extension of its popular Exploring Leadership program to two cohorts per year, record participation in its mentorship program, enhancements to the LEAD management curriculum and widespread adoption of AI‑powered tools—now leveraged by more than 90% of employees—to strengthen productivity and innovation.Empowering an inclusive and respectful culture: Seven Employee Resource Groups (ERGs) hosted a wide range of programs that encouraged the global Progress team to share perspectives, build community and foster a culture grounded in openness and continuous learning.Employee wellbeing: The company delivered more than 40 wellbeing initiatives, including the Move More Challenge, a financial education series and the Make Healthy Gains wellness challenge, reinforcing its commitment to supporting employees’ physical, mental and financial health.
Our Global Community: Driving Meaningful Change
Community impact: Progress and its employees supported more than 290 charities worldwide and contributed 674 volunteer hours to causes centered on STEM education, youth and sustainable communities.STEM and AI education support: Progress continued its global scholarship program, sponsored student robotics teams and hosted hands‑on STEM experiences. These efforts aim to close opportunity gaps and prepare future talent with the skills needed for an AI-enabled world. Our Planet: Advancing Sustainability Efforts
Earth Team initiatives: Progress’ employee-led Earth Team boosted sustainability awareness through composting workshops, clothing drives and hands-on environmental activities.Advancing our environmental stewardship: The company strengthened the foundation of its long-term sustainability strategy by engaging sustainability experts to guide the next phase of its environmental and social responsibility roadmap. Progress operates with a people‑first mindset rooted in courage, teamwork and accountability—empowering employees to take initiative, collaborate openly and deliver meaningful outcomes. The company fosters a flexible, supportive workplace that prioritizes professional development and helps employees feel valued, trusted and accountable for their impact. With teams across North America, Europe, Latin America and Asia Pacific, Progress amplifies its global reach by encouraging employees to give back to their local communities. Together, these efforts help employees grow their skills, strengthen connections and advance Progress’ culture of innovation and customer success.
For more information about Progress’ CSR initiatives and to access the 2025 CSR report, visit the Progress for Tomorrow webpage. To explore career opportunities, visit the Progress Career webpage.
About Progress Software
Progress Software (Nasdaq: PRGS) empowers organizations to achieve transformational success in the face of disruptive change. Our software enables our customers to develop, deploy and manage responsible AI-powered applications and personalized digital experiences with agility and ease. Businesses of all sizes get a trusted provider in Progress, with the products, expertise and vision they need to turn AI disruption into a competitive advantage. Millions of developers and technologists at hundreds of thousands of organizations depend on Progress every day. Learn more at www.progress.com.
Progress and certain product names used herein are trademarks or registered trademarks of Progress Software Corporation and/or one of its subsidiaries or affiliates in the U.S. and/or other countries. See Trademarks for appropriate markings. All rights in any other trademarks contained herein are reserved by their respective owners and their inclusion does not imply an endorsement, affiliation or sponsorship as between Progress and the respective owners.
Press Contacts:
Kim Baker
Progress
+1-800-477-6473 [email protected]
Progress Software (PRGS - Free Report) closed the last trading session at $31.32, gaining 0.1% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $50.83 indicates a 62.3% upside potential.
The average comprises six short-term price targets ranging from a low of $34.00 to a high of $83.00, with a standard deviation of $17.5. While the lowest estimate indicates an increase of 8.6% from the current price level, the most optimistic estimate points to an 165% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
However, an impressive consensus price target is not the only factor that indicates a potential upside in PRGS. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Here's Why There Could be Plenty of Upside Left in PRGSAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The Zacks Consensus Estimate for the current year has increased 2.9% over the past month, as three estimates have gone higher compared to no negative revision.
Moreover, PRGS currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much PRGS could gain, the direction of price movement it implies does appear to be a good guide.
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Progress Software (PRGS - Free Report) . PRGS is currently sporting a Zacks Rank #2 (Buy) and an A for Value.
Investors should also recognize that PRGS has a P/B ratio of 4. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 6.66. Over the past year, PRGS's P/B has been as high as 7.05 and as low as 3.95, with a median of 5.89.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PRGS has a P/S ratio of 1.29. This compares to its industry's average P/S of 3.76.
Finally, investors will want to recognize that PRGS has a P/CF ratio of 9.86. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 16.46. PRGS's P/CF has been as high as 18.02 and as low as 9.74, with a median of 14.83, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Progress Software is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PRGS feels like a great value stock at the moment.
Investors interested in Computer - Software stocks are likely familiar with Progress Software (PRGS - Free Report) and Synopsys (SNPS - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Progress Software is sporting a Zacks Rank of #2 (Buy), while Synopsys has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that PRGS likely has seen a stronger improvement to its earnings outlook than SNPS has recently. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
PRGS currently has a forward P/E ratio of 4.56, while SNPS has a forward P/E of 33.35. We also note that PRGS has a PEG ratio of 0.91. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SNPS currently has a PEG ratio of 2.81.
Another notable valuation metric for PRGS is its P/B ratio of 2.3. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, SNPS has a P/B of 3.02.
Based on these metrics and many more, PRGS holds a Value grade of A, while SNPS has a Value grade of D.
PRGS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that PRGS is likely the superior value option right now.
On May 01, 2026, Progress Software Corp (PRGS) shares rose 4.0% today, closing at $28.95. The stock has experienced significant volatility over the past year, w
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Progress Software (PRGS - Free Report) . PRGS is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.46 right now. For comparison, its industry sports an average P/E of 22.33. Over the last 12 months, PRGS's Forward P/E has been as high as 14.46 and as low as 7.37, with a median of 10.95.
Another valuation metric that we should highlight is PRGS's P/B ratio of 4. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 6.03. Over the past year, PRGS's P/B has been as high as 7.05 and as low as 3.95, with a median of 5.89.
Finally, we should also recognize that PRGS has a P/CF ratio of 9.86. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. PRGS's current P/CF looks attractive when compared to its industry's average P/CF of 16.07. Over the past 52 weeks, PRGS's P/CF has been as high as 18.02 and as low as 9.74, with a median of 14.83.
Value investors will likely look at more than just these metrics, but the above data helps show that Progress Software is likely undervalued currently. And when considering the strength of its earnings outlook, PRGS sticks out as one of the market's strongest value stocks.
State of Accounting 2026 finds accountants embracing AI and automation—yet disconnected systems and inefficient processes continue to limit productivity and consistent client experiences
BURLINGTON, Mass., May 12, 2026 (GLOBE NEWSWIRE) -- Progress Software (Nasdaq: PRGS), the trusted provider of AI-powered digital experience and infrastructure software, today announced the release of its State of Accounting 2026 report. The nationwide survey of U.S.-based accounting professionals, conducted by Regina Corso Consulting, shows a profession moving fast on AI and automation—while tool sprawl, fragmented systems and inefficient workflows continue to slow firms down and strain the client experience. The full report is available here.
Even with ongoing operational challenges, enthusiasm for the profession remains high. Nearly all accountants (98%) say they love their work—citing problem-solving, career stability and meaningful client impact as top motivators. But efficiency gaps persist: three-quarters (75%) say their workflows involve too many steps, and 57% report they can do their jobs effectively—but not efficiently—highlighting the disconnect between the work accountants want to do and what today’s systems enable.
“Accountants are committed to delivering exceptional client experiences and outcomes, but too much of their time is still consumed by manual processes, disconnected tools and operational friction,” said Loren Jarrett, EVP and GM, Digital Experience at Progress Software. “The State of Accounting 2026 report makes it clear that accounting firms are in need of secure and governed AI-powered technology that removes friction in their daily tasks and enables accountants to focus on higher-value client work and strategic advisory.”
Key Findings from the State of Accounting 2026 Report
Client experience is the top priority—yet hard to deliver consistently: Client experience ranks as the number one priority for individual accountants (97%) and their firms (98%). Yet only half say it’s easy to deliver that experience consistently, largely due to operational inefficiencies.AI is already mainstream—and accelerating: Today, 84% of accountants use AI for tasks such as document summarization, workflow routing and validation, security enhancement and client advisory support. Concerns about data privacy, bias and governance continue to shape how firms scale responsibly.Technology is essential, but too often fragmented: Nearly all respondents (98%) say they need technology that streamlines processes and improves efficiency. Still, 61% say they’re slowed by switching between too many tools, and 65% report a lack of automation for routine accounting tasks.Automation is trusted but underused: While 97% believe automation enhances the client experience, only 24% say a large portion of their work is automated. Integration challenges, security concerns, budget constraints and leadership resistance remain key barriers.Secure document exchange remains a major friction point: 61% of accountants say document exchanges aren’t secure enough, reinforcing the need to protect sensitive data without sacrificing productivity or collaboration. “The big opportunity for businesses right now is the use of AI,” said Darren Forish, Shareholder, Tax Division, LBMC. “Find a way to incorporate it into your business and make sure you can grow with it. Clients are seeing that and wanting to try out that company because they’re forward looking.”
To overcome these barriers, firms are prioritizing tool consolidation, streamlined collaboration and embedded automation and security. Solutions like Progress® ShareFile® help simplify client onboarding, reduce tool sprawl and securely manage document-heavy workflows—so teams can work faster, better safeguard sensitive information and deliver more consistent client experiences without adding complexity.
About the Survey
The State of Accounting 2026 report is based on a nationwide survey of 311 U.S.-based accounting professionals across accounting, tax, audit and bookkeeping firms, as well as in-house roles at organizations of varying sizes. The research explores job satisfaction, efficiency, client experience priorities, technology adoption, automation, AI usage and security challenges shaping the future of accounting.
To further explore the findings from the State of Accounting 2026 report, Progress will host a webinar on May 21, featuring insights from industry experts. Click here to register.
About Progress Software
Progress Software (Nasdaq: PRGS) empowers organizations to achieve transformational success in the face of disruptive change. Our software enables our customers to develop, deploy and manage responsible AI-powered applications and personalized digital experiences with agility and ease. Businesses of all sizes get a trusted provider in Progress, with the products, expertise and vision they need to turn AI disruption into a competitive advantage. Millions of developers and technologists at hundreds of thousands of organizations depend on Progress every day. Learn more at www.progress.com.
Progress and certain product names used herein are trademarks or registered trademarks of Progress Software Corporation and/or one of its subsidiaries or affiliates in the U.S. and/or other countries. See Trademarks for appropriate markings. All rights in any other trademarks contained herein are reserved by their respective owners and their inclusion does not imply an endorsement, affiliation or sponsorship as between Progress and the respective owners.
Press Contact:
Kim Baker
Progress Software
+1-800-477-6473 [email protected]
Recognition underscores Progress Software’s innovation in removing barriers to GenAI research and making trustworthy RAG accessible to organizations of any size
BURLINGTON, Mass., May 14, 2026 (GLOBE NEWSWIRE) -- Progress Software (Nasdaq: PRGS), the trusted provider of AI-powered digital experience and infrastructure software, today announced that Progress® Agentic RAG has been named a winner in the 2026 Artificial Intelligence Excellence Awards in the Retrieval-Augmented Generation (RAG) category. Presented by the Business Intelligence Group, the awards recognize organizations, products, teams and individuals applying artificial intelligence (AI) to drive real-world, measurable impact.
Progress Agentic RAG is a breakthrough SaaS platform that serves as an enterprise knowledge layer, transforming unstructured data from 60+ formats into a shared, governed intelligence foundation. With applications across numerous business functions, including internal search, compliance, customer support and analytics, organizations ingest their unstructured assets once and maintain centralized control over retrieval, evaluation and security. Teams can tailor retrieval strategies and swap large language models (LLMs) at the feature level without reengineering their data pipelines. With no-code deployment and built-in RAG evaluation, governance and traceability, Progress Agentic RAG delivers accurate, citation-backed answers that help organizations accelerate productivity, improve decision-making and operationalize AI with confidence.
Enterprises are deploying the platform to power sales assistants, support agents, research copilots and AI search experiences that connect contracts, case files, support tickets and internal expertise across legal, support, operations and research teams within a single governed knowledge layer. For example, a European law firm recently empowered nearly 300 professionals to handle thousands of legal inquiries each month while reducing manual research time.
“AI has arrived! 2026 is about execution, accountability, and results,” said Russ Fordyce, Chief Recognition Officer, Business Intelligence Group. “Progress Software stood out because its work in retrieval augmented generation reflects where the market is headed: practical AI that solves real problems, earns trust, and delivers measurable value. This recognition highlights a team that is not just participating in the AI shift but helping define what meaningful progress looks like.”
The 2026 Artificial Intelligence Excellence Awards honor achievement across a wide range of industries and use cases, spotlighting companies that are moving AI beyond experimentation and into responsible, production-ready deployment. This year’s program recognized winners spanning 36 industries and more than 15 countries.
“We’re honored to be recognized by the Business Intelligence Group for innovation in Retrieval-Augmented Generation,” said John Ainsworth, EVP and General Manager, Application and Data Platform, Progress Software. “Progress Agentic RAG was designed to equip organizations with GenAI they can rely on—technology that not only accelerates productivity, but enables transparency, compliance and real-world performance. This award is a meaningful acknowledgment of that mission.”
This latest recognition adds to a growing list of global accolades that highlight the innovation and market impact of Progress Agentic RAG. The platform was named Overall Data Technology Innovation of the Year at the 2026 Data Breakthrough Awards, earned Silver in the Enterprise Retrieval-Augmented Generation Solution category at the 2026 Globee Awards for Artificial Intelligence, received top honors in the Artificial Intelligence category at the 2025 Global Tech Awards, and was recognized with the AI Innovation Award at the Leaders of Influence Awards 2025—underscoring its expanding role in driving enterprise AI adoption worldwide.
For more information about Progress Agentic RAG, visit https://www.progress.com/agentic-rag.
About Progress Software
Progress Software (Nasdaq: PRGS) empowers organizations to achieve transformational success in the face of disruptive change. Our software enables customers to develop, deploy and manage responsible AI-powered applications and personalized digital experiences with agility and ease. Businesses of all sizes rely on Progress for the products, expertise and vision they need to turn AI disruption into a competitive advantage. Millions of developers and technologists at hundreds of thousands of organizations depend on Progress every day. Learn more at www.progress.com.
Progress and certain product names used herein are trademarks or registered trademarks of Progress Software Corporation and/or one of its subsidiaries or affiliates in the U.S. and/or other countries. See Trademarks for appropriate markings. All rights in any other trademarks contained herein are reserved by their respective owners and their inclusion does not imply an endorsement, affiliation or sponsorship as between Progress and the respective owners.
Press Contact:
Kim Baker
Progress Software
+1-800-477-6473 [email protected]
Investors looking for stocks in the Computer - Software sector might want to consider either Progress Software (PRGS) or Synopsys (SNPS). But which of these two stocks offers value investors a better bang for their buck right now?
Uncertainty prevailing over global macroeconomic conditions continues to be concerning for the Zacks Computer Software industry participants, as this might upend IT budgets. The software industry remains highly competitive, particularly in AI areas, which can lead to pricing pressure that could impact margins.
Despite these headwinds, the industry's evolving trends point to momentum ahead. The industry participants are positioned for solid growth as businesses around the globe accelerate their digital transformation initiatives. The ongoing migration to cloud and the widespread adoption of Software-as-a-Service (SaaS) models continue to provide recurring revenue visibility for vendors while giving customers the scalability, flexibility and cost efficiency they increasingly demand.
At the same time, rapid advances in artificial intelligence (“AI”) and machine learning (“ML”) are reshaping the industry. The cutting-edge technologies are being swiftly integrated into enterprise and consumer applications. Software vendors are increasingly embedding generative AI into productivity tools, customer service platforms and enterprise resource planning systems. Per a Precedence Research report, the global software market is expected to witness a CAGR of 11.6% from 2026 to 2035 to reach 2,468.93 billion. These trends augur well for industry participants, such as Oracle Corporation (ORCL - Free Report) , Intuit (INTU - Free Report) and Progress Software Corporation (PRGS - Free Report) .
Industry Description The Zacks Computer Software industry includes companies that provide software applications related to AI, cloud computing, electronic design automation (primarily for semiconductor and electronics industries), digital media and marketing, customer relationship management, on-premises and cloud-based database management, accounting and tax purposes, human capital management, cybersecurity and application performance monitoring and a cloud-based enterprise communications platform. Some companies develop and market simulation software (like computer-aided design or CAD, 3D modeling, product lifecycle management or PLM, data orchestration and experience creation), which engineers, designers and researchers use across various industries like architecture, engineering and construction, product design, manufacturing and digital media.
3 Trends Shaping the Future of the Software Industry Higher Spending on AI and Cloud: Cloud computing will continue to be a dominant force in the software industry, with businesses adopting hybrid and multi-cloud environments to meet their growing needs for flexibility and scalability. Cloud offers a flexible and cost-effective platform for developing and testing applications. The deployment time is also shorter compared with legacy systems. SaaS companies are expected to register strong top-line growth on a higher percentage of recurring revenues, subscription gross margin and a lower churn rate.
However, AI, Generative AI, in particular, is now becoming the defining force behind the next chapter of software evolution. The continued investment in AI, big data and analytics, and the ongoing adoption of SaaS open up opportunities for these players. Going forward, AI and ML tech are expected to be widely integrated into the software tools. This increasing demand for AI-powered software tools for automation, personalization, predictive analytics and decision-making augurs well.
According to a report from Gartner, worldwide AI spending is projected to reach $2.59 trillion in 2026, calling for an increase of 47% from 2025 levels. Spending on AI-related software continues to rise, according to Gartner, with the estimated spend at $453.2 billion, up from $282.9 billion in 2025.
Increased Cybersecurity Focus: The increasing need to secure cloud platforms amid growing cyberattacks and hacking incidents drives demand for cybersecurity software. As software becomes more interconnected, cloud-native and AI-powered, it is driving the demand for performance management monitoring tools that are scalable and suitable for cloud-based environments. Zero-trust architectures, identity and access management and real-time threat detection powered by AI are becoming essential features of modern software platforms.
Macroeconomic Headwinds a Concern: Global macroeconomic weakness and volatile supply-chain dynamics are persistent concerns. Though tariff troubles are unlikely to affect the software industry directly, higher tariffs on hardware would lead to higher costs. This would affect the software pricing as well. Inflation could affect spending across small and medium-sized businesses globally. The uncertainty in business visibility could dent the industry’s performance in the near term.
Zacks Industry Rank Indicates Bleak Prospects The Zacks Computer Software industry is housed within the broader Zacks Computer and Technology sector. This carries a Zacks Industry Rank #152, which places it in the bottom 38% of more than 244 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bleak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
Before we present a few stocks you may want to consider for your portfolio, given their bright prospects, let us look at the industry’s recent stock-market performance and valuation picture.
Industry Underperforms the Sector and the S&P 500 The Zacks Computer Software industry has underperformed the broader Zacks Computer and Technology sector and the S&P 500 Index in the past year.
The industry has lost 12.3% over this period against the S&P 500 and the broader sector’s increase of 31.5% and 52.2%, respectively.
One-Year Price Performance
Industry's Current Valuation Based on the forward 12-month P/E, a commonly used multiple for valuing software companies, we see that the industry is currently trading at 21.86X compared with the S&P 500’s 22.18X. It is also down from the sector’s forward-12-month P/E of 25.96X.
In the past five years, the industry has traded as high as 35.33X and as low as 20.39X, with the median being 30.28X, as the chart below shows.
Forward 12-Month Price-to-Earnings (P/E) Ratio
Forward 12-Month P/E Ratio
3 Software Stocks to Boost Portfolio Returns Oracle is one of the well-known names in the tech space. The company’s operations span from enterprise software to cloud services and database management systems.
Oracle’s database and infrastructure businesses are fast gaining momentum. In the last reported quarter, multicloud database revenues surged 531% year over year, while AI infrastructure revenues climbed 243%. These hypergrowth segments highlight Oracle’s success in monetizing AI demand and expanding its cloud footprint across hyperscalers.
Oracle’s partnerships with Microsoft, Google and Amazon are proving transformative. By running its database across all major clouds, Oracle is tapping into a huge installed base of customers who want flexibility without affecting performance.
Oracle’s remaining performance obligations (“RPO”) stood at an impressive $553 billion, underscoring strong forward visibility. The massive RPO backlog, coupled with demand exceeding supply in AI infrastructure, provides a clear runway for sustained growth.
For fiscal 2026, management reiterated its revenue target of $67 billion and capex of $50 billion. For fiscal 2027, Oracle raised its revenue guidance to $90 billion.
ORCL currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for the company’s fiscal 2026 earnings is pegged at $7.46 per share, indicating year-over-year growth of 23.7%. The stock has gained 17.2% in the past year.
Price and Consensus: ORCL
Intuit is a business and financial software company that develops and sells financial, accounting and tax preparation software and related services for small businesses, consumers and accounting professionals globally.The company’s core products, QuickBooks and TurboTax, enhance its position in the financial and tax management market. TurboTax Live is to the company’s push into the $37 billion assisted tax market. Intuit expects TurboTax Live customers to grow 38% and revenues to increase 36% for the full year, significantly above its long-term growth target. As a result, TurboTax Live is expected to contribute more than half of total TurboTax revenues.
Within the Global Business Solutions segment, Intuit continued to see strong momentum, with revenues growing 15% in the last reported quarter and online ecosystem revenues increasing 19%. Total online payment volume increased 30%, reflecting strong adoption of payments and Bill Pay.
The company is implementing AI across its operations to automate workflows, generate insights and improve customer outcomes.
Intuit raised its fiscal 2026 guidance, projecting revenues between $21.341 billion and $21.374 billion, representing approximately 13% to 14% growth.
INTU currently carries a Zacks Rank #2. The Zacks Consensus Estimate for the company’s fiscal 2026 earnings is pegged at $23.31 per share, indicating year-over-year growth of 15.7%. The stock has declined 59.4% in the past year.
Price and Consensus: INTU
Progress Software is benefiting from strength in its product portfolio, comprising offerings such as OpenEdge, WhatsUp Gold, ShareFile, Loadmaster, MOVEit and DevTools. The company’s platform aids in developing and deploying mission-critical business applications. In the last reported quarter, revenues reached $248 million, up 4% year over year, primarily driven by OpenEdge. Net retention rate of 99% reflects strong customer loyalty and stickiness.
Progress is embedding AI capabilities across its products, enabling customers to improve business outcomes. M&A also remains a core pillar of growth. The integration of ShareFile has strengthened the company’s SaaS capabilities, expanded recurring revenues and enhanced profitability and cash flow, noted management. Progress continues to pursue disciplined, high-return acquisitions.
Cash flow generation is expected to remain robust, with adjusted free cash flow forecasted between $263 million and $275 million. This supports the company’s capital allocation strategy, which prioritizes debt reduction, opportunistic share repurchases and strategic M&A. The company plans to repay $250 million in debt during the year, further improving its leverage profile.
PRGS currently carries a Zacks Rank #2. The Zacks Consensus Estimate for the company’s fiscal 2026 earnings is pegged at $5.98 per share, indicating year-over-year growth of 4.6%. The stock has declined 51.3% in the past year.
