Progress Software (NASDAQ:PRGS) Shares Gap Up After Strong Earnings

Progress Software Corporation (NASDAQ:PRGS)’s share price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $38.60, but opened at $42.05. Progress Software shares last traded at $46.6670, with a volume of 1,125,584 shares.

The software maker reported $1.51 earnings per share for the quarter, beating the consensus estimate of $1.31 by $0.20. Progress Software had a return on equity of 44.49% and a net margin of 7.48%.The business had revenue of $253.00 million during the quarter, compared to analysts’ expectations of $252.86 million. During the same quarter last year, the business posted $1.33 earnings per share. The company’s quarterly revenue was up 17.5% on a year-over-year basis. Progress Software has set its FY 2026 guidance at 1.74-1.910 EPS and its Q1 2026 guidance at 1.56-1.62 EPS.

Key Stories Impacting Progress Software

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

• Positive Sentiment: Q4 results beat expectations: reported EPS of $1.51 vs. the $1.31 consensus and revenue up ~17.5% year-over‑year to roughly $253M — the core beat and top-line growth underpinned the rally. GlobeNewswire: Q4 Results
• Positive Sentiment: Management set FY‑2026 targets that imply ~ $986M–$1.0B in revenue and raised EPS guidance (FY EPS 1.74–1.91; Q1 EPS 1.56–1.62), signaling confidence in AI-driven demand and providing a clear catalyst for upside. Zacks: Guidance & Reaction
• Positive Sentiment: AI demand and customer momentum were emphasized on the call and in coverage — media and analysts are citing Progress as a go‑to provider for customers building AI-powered apps, which supports recurring ARR growth. Fool: AI Demand Lift
• Positive Sentiment: Analyst support and price targets skew bullish (recent Buy ratings and median targets above the current price) — helpful for sentiment and potential further upside. Quiver: Analyst Notes & Targets
• Neutral Sentiment: Options and trading activity have spiked around the print — increased volume and elevated options flow can amplify intraday moves but also add short‑term volatility. Benzinga: Options Activity
• Neutral Sentiment: Earnings call transcript and slides are available for deeper read — useful for investors wanting management detail on ARR, customer wins and margin cadence. MSN / Transcript
• Negative Sentiment: Some third‑party summaries flagged mixed metrics (different EPS presentations and one source noting an EPS miss versus an alternate estimate), which creates near‑term noise and analyst reconciling. Quiver: Mixed Read
• Negative Sentiment: Balance‑sheet and valuation considerations: Progress carries higher leverage and low liquidity ratios and trades at a relatively high PE (~39), which could limit upside if growth or margins slow. Background: Financial ratios

Analyst Ratings Changes

Several research firms have recently weighed in on PRGS. Jefferies Financial Group reduced their price objective on Progress Software from $50.00 to $45.00 and set a “hold” rating for the company in a research note on Monday, January 5th. Citigroup reduced their target price on Progress Software from $57.00 to $54.00 and set a “buy” rating for the company in a report on Friday, January 16th. Wall Street Zen raised shares of Progress Software from a “hold” rating to a “buy” rating in a research note on Friday, October 3rd. Weiss Ratings cut shares of Progress Software from a “hold (c-)” rating to a “sell (d+)” rating in a report on Saturday, October 25th. Finally, DA Davidson cut their price target on shares of Progress Software from $75.00 to $70.00 and set a “buy” rating on the stock in a report on Thursday, January 15th. Four analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Progress Software presently has an average rating of “Moderate Buy” and an average price target of $65.40.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. DLD Asset Management LP boosted its holdings in Progress Software by 31.5% in the second quarter. DLD Asset Management LP now owns 43,000,000 shares of the software maker’s stock worth $2,745,120,000 after purchasing an additional 10,300,000 shares in the last quarter. Qube Research & Technologies Ltd acquired a new stake in shares of Progress Software in the third quarter worth about $16,324,000. Marshall Wace LLP boosted its stake in shares of 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 acquiring an additional 314,459 shares in the last quarter. Diamond Hill Capital Management Inc. increased its holdings in shares of 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 valued at $20,410,000 after acquiring an additional 275,205 shares during the last quarter. Finally, Allspring Global Investments Holdings LLC increased its holdings in shares of Progress Software by 26.1% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 1,178,716 shares of the software maker’s stock valued at $53,302,000 after acquiring an additional 243,950 shares during the last quarter.

Progress Software Price Performance

The stock has a 50 day moving average of $42.25 and a two-hundred day moving average of $44.26. The company has a debt-to-equity ratio of 2.22, a quick ratio of 0.44 and a current ratio of 0.44. The firm has a market capitalization of $1.83 billion, a P/E ratio of 25.72, a P/E/G ratio of 1.70 and a beta of 0.61.

About Progress Software

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.