PRGS
Progress Software Corporation

Progress Software CorporationPRGS

Technology · Software - Infrastructure
43.50USD
-2.44%
Nov 09, 2026
PRGS overview ready
Enterprise AI Deployment Software Enabling Data Connectivity and Automation
Progress is a diversified enterprise infrastructure-software vendor that is becoming an enabler of enterprise AI deployment through its data, semantic AI, RAG, automation and governance-oriented products, alongside its larger installed base in application development, file transfer, DevOps, digital experience and IT operations software.
Primary theme is weakening
DevOps, Observability & IT Operations is weakening (-1.4pp vs SPY over 21 sessions; 3 of 6 members ahead of SPY).
Constructive pullback in an uptrend
Longer-term context reads early recovery, with a near-term setup of constructive pullback.
Fair valuation
The price broadly reflects the cash the business actually produces, with upside and risk reasonably balanced.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Competition from larger enterprise software vendors.
Market Nov 6Filing Aug 31Price action Nov 8Research Oct 23

Conviction Level

PriceAction8.9BusinessPerformance5.0BusinessQuality8.0Valuation3.5ThemeMomentum3.0Stable — Revenue is roughly flat year over year (-1.5%). Diluted EPS is up 25% year over year ($0.55), but growth has slowed from +121%. That earnings comparison is against a weak year-ago quarter. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
vs SPY
−1.4pp
Theme return
−6.4%
Beating SPY
3 of 6
21 sessions to Nov 6, 2026 · Theme Leadership V2
Price
Loading price history…

Price Action

Constructive pullback in an uptrend
Longer-term context reads early recovery, with a near-term setup of constructive pullback.
EntryConstructive

Structure is constructive on both timeframes without excessive extension — a reasonable entry location.

Key Financials

Market Cap
$1.8B
Avg Volume (60D)
567.1K
60 sessions
Revenue Growth YoY
+29.8%
FY2025 vs FY2024
Gross Margin
+82.2%
Trailing twelve months
Operating Margin
+17.7%
Trailing twelve months
Free Cash Flow Yield
+17.9%
Distance from 200DMA
+18.3%
Next Earnings
2027-01-19
P/E
19.2x
EV / Sales
2.9x
Market metrics as of Nov 6, 2026
Financial results for the period ended Aug 31, 2026
Filed balance-sheet data as of Aug 31, 2026

Business Performance

Stable

Revenue is roughly flat year over year (-1.5%). Diluted EPS is up 25% year over year ($0.55), but growth has slowed from +121%. That earnings comparison is against a weak year-ago quarter.

Latest reported: Q3 FY2026, ended Aug 31
Revenue growthFlat
-1.5%
$246M in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. +18%
  2. +4.1%
  3. +6.8%
  4. -1.5%
Earnings growthSlowing
+25%
Diluted EPS $0.55 vs $0.44 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. n/a
  2. +121%
  3. +28%
  4. +25%
Operating marginExpanding
18.9%
+1.4 pp YoY · gross margin 82.7% (+1.8 pp)
Earnings are growing without revenue growth
The comparison is against a weak year-ago quarter

Business Quality

8.0 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Two of the three valuation perspectives say cheap; own history is the dissenting view. The published stance is held at fair because net debt above 60% of market capitalisation — refinancing risk may explain the price.
Progress Software Corporation has a Fair valuation stance because the price broadly reflects the cash the business actually produces, with upside and risk reasonably balanced.

Company Research

Thesis
Progress is a diversified enterprise infrastructure-software vendor that is becoming an enabler of enterprise AI deployment through its data, semantic AI, RAG, automation and governance-oriented products, alongside its larger installed base in application development, file transfer, DevOps, digital experience and IT operations software.
Opportunity
Moderate opportunity
Enterprise spending on the data connectivity, semantic context, retrieval, governance and workflow layers needed to move AI agents from pilots into trusted production use.
Key risk
Competition from larger enterprise software vendors.

Economic classification

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Business & Markets

Technology · Software - Infrastructure
What they do

Progress Software Corporation develops, deploys, and manages AI-powered applications and digital experiences through a diversified portfolio of software products serving enterprise infrastructure needs globally.

How it earns

The company primarily generates revenue through subscription-based Software-as-a-Service (SaaS) and software licensing models.

Products & services
Agentic RAG platform
Automate MFT
Chef DevOps automation
Corticon decision automation
DataDirect data connectivity tools
Customers & end markets
Enterprise IT organizations
Software developers
Digital experience teams
Market position

A diversified enterprise infrastructure software vendor positioned as an enabler of AI deployment alongside established application development and IT operations products.

Demand drivers
Medium cyclicality

Demand is influenced by enterprise IT spending cycles and adoption rates of emerging AI technologies.