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Earnings Data
Report Date
Sep 29, 2026After Close (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
1.5Last Year’s EPS
1.5Same Quarter Last Year
Strong Buy
Based on 3 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a predominantly positive operational and financial update: Progress exceeded expectations across revenue, EPS, margins, and free cash flow in Q2, raised full-year guidance, improved collections, and continued deleveraging while highlighting strong product momentum (notably the data platform and AI-related wins such as the NVIDIA Chef partnership). Key risks and constraints were also clearly acknowledged — ARR growth remains modest at 2% pro forma, total leverage is still significant (~2.9x), some of the quarter's outperformance was timing-driven, and a portion of cash flow gains reflected one-time collection improvements. Management signaled disciplined capital allocation, opportunistic M&A appetite, and confidence in continued execution. Overall, positives (outperformance, margin and cash generation, balance sheet improvement, product momentum and raised guidance) outweigh the negatives (modest ARR growth, substantial absolute debt, and some timing-driven variability).Company Guidance
Revenue Growth Exceeded Expectations
Q2 revenue of $253 million, up 7% year-over-year, and exceeded the high end of guidance for the quarter.
Annual Recurring Revenue (ARR) Expansion
ARR closed at approximately $868 million, representing ~2% pro forma year-over-year growth in constant currency.
Strong Profitability and EPS Outperformance
Operating margin of 40% in Q2; EPS of $1.62, which was well ahead of guidance and represented approximately 16% year-over-year EPS growth.
Material Free Cash Flow Improvement
Adjusted free cash flow of $79 million in Q2 (vs. $37 million in prior-year quarter), an increase of ~113% year-over-year; first-half adjusted free cash flow totaled $178 million.
Balance Sheet Progress and Deleveraging
Net leverage improved to ~2.9x (from 3.4x at the start of the fiscal year); paid down approximately $110 million of debt in the first half and $50 million during Q2 specifically.
Collections and Working Capital Improvement
Days Sales Outstanding (DSO) improved to 49 days (down 4 days YoY), reflecting better collections and contributing to stronger cash flow.
Product & Market Momentum — Data Platform and AI-Relevance
Broad-based portfolio strength highlighted, with particular momentum in the Progress Data Platform (PDP) including continued large deals (previously noted seven-figure deal) and product wins across DataDirect, Chef, MarkLogic, and LoadMaster; announced Chef Enterprise Management for NVIDIA DGX Spark to address AI infrastructure management.
Net Retention and Customer Loyalty
Net retention rate reported at 100% (up from 99% last quarter), indicating strong customer retention and upsell dynamics.
Raised Full-Year Financial Guidance
Full-year 2026 revenue guidance raised to $990 million–just over $1.0 billion (now implying ~1%–2.5% growth vs. prior year); full-year EPS guidance raised to $6.09–$6.21 (up $0.18). Full-year adjusted free cash flow guidance increased to $271M–$283M and unlevered FCF to $323M–$334M.
Disciplined Capital Allocation
During H1 repurchased ~$55 million of stock with ~$148 million remaining under authorization; plan to allocate ~$220 million to net debt repayment and ~$75 million to repurchases for the full year while maintaining opportunistic M&A focus.
PRGS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
PRGS Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Jun 30, 2026 | $33.58 | $39.16 | +16.62% |
Mar 30, 2026 | $28.27 | $25.65 | -9.27% |
Jan 20, 2026 | $38.60 | $42.70 | +10.62% |
Sep 29, 2025 | $42.61 | $43.93 | +3.10% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Progress Software (PRGS) report earnings?
Progress Software (PRGS) is schdueled to report earning on Sep 29, 2026, After Close (Confirmed).
What is Progress Software (PRGS) earnings time?
Progress Software (PRGS) earnings time is at Sep 29, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is PRGS EPS forecast?
PRGS EPS forecast for the fiscal quarter 2026 (Q3) is 1.5.