Progress Software (NASDAQ:PRGS) Stock Price Down 6.3% – Here’s Why

Progress Software Corporation (NASDAQ:PRGS)’s share price was down 6.3% during trading on Thursday. The company traded as low as $37.87 and last traded at $37.4610. 256,000 shares were traded during trading, a decline of 70% from the average daily volume of 840,973 shares. The stock had previously closed at $39.97.

Key Headlines Impacting Progress Software

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

• Positive Sentiment: Progress reported fiscal third-quarter adjusted EPS of $1.69, above the $1.49 consensus estimate, while GAAP operating income increased 6% year over year and operating cash flow rose 20% to $88 million. Progress Software Beats Q3 Earnings Estimates
• Positive Sentiment: The company raised its fiscal 2026 adjusted EPS outlook to $6.15-$6.23, broadly in line with the $6.18 analyst estimate, following the completion of its acquisition of Domo’s AI and Data Platform business. Progress Software Lifts Outlook After Domo AI Acquisition
• Positive Sentiment: Progress introduced expanded Agentic RAG capabilities designed to connect enterprise data across business systems and support AI agents without requiring customers to rebuild existing deployments, reinforcing its AI growth strategy. Progress Software Announces New Agentic RAG Capabilities
• Neutral Sentiment: Fiscal third-quarter revenue was approximately $246 million, essentially matching estimates but declining about 1.5%-2% year over year. Annualized recurring revenue rose only 1% on a constant-currency basis, suggesting limited underlying growth momentum. Progress Software Fiscal Third Quarter 2026 Results
• Negative Sentiment: Fourth-quarter adjusted EPS guidance of $1.24-$1.33 was below the $1.37 consensus estimate. The cautious profit outlook, together with integration and execution risks from the Domo acquisition, appears to be outweighing the quarterly earnings beat.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on PRGS shares. Jefferies Financial Group raised Progress Software to a “hold” rating in a research note on Friday, September 25th. Guggenheim reissued a “buy” rating and set a $83.00 target price on shares of Progress Software in a research note on Wednesday, July 1st. DA Davidson raised their price target on shares of Progress Software from $45.00 to $55.00 and gave the company a “buy” rating in a research note on Wednesday, August 12th. Weiss Ratings upgraded shares of Progress Software from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Tuesday, August 11th. Finally, Oppenheimer decreased their price target on shares of Progress Software from $57.00 to $50.00 and set an “outperform” rating on the stock in a report on Wednesday, July 1st. Five investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $52.17.

Progress Software Stock Down 4.4%

The firm has a market capitalization of $1.57 billion, a price-to-earnings ratio of 18.59, a P/E/G ratio of 1.66 and a beta of 0.82. The company has a debt-to-equity ratio of 2.55, a current ratio of 0.81 and a quick ratio of 0.81. The stock has a fifty day moving average of $42.10 and a two-hundred day moving average of $35.08.

Progress Software (NASDAQ:PRGS) last announced its earnings results on Tuesday, June 30th. The software maker reported $1.62 EPS for the quarter, topping the consensus estimate of $1.46 by $0.16. Progress Software had a return on equity of 43.07% and a net margin of 8.87%.The firm had revenue of $253.47 million for the quarter, compared to the consensus estimate of $242.74 million. During the same period in the previous year, the business earned $1.40 EPS. The business’s quarterly revenue was up 6.8% compared to the same quarter last year. Sell-side analysts anticipate that Progress Software Corporation will post 4.77 earnings per share for the current year.

Hedge Funds Weigh In On Progress Software

A number of hedge funds have recently made changes to their positions in the stock. The Manufacturers Life Insurance Company bought a new stake in Progress Software during the second quarter valued at $40,780,000. Heron Bay Capital Management acquired a new position in shares of Progress Software in the 2nd quarter valued at about $34,011,000. Arrowstreet Capital Limited Partnership lifted its stake in shares of Progress Software by 133.6% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,221,647 shares of the software maker’s stock valued at $31,335,000 after purchasing an additional 698,611 shares during the period. Rice Hall James & Associates LLC bought a new stake in shares of Progress Software during the 2nd quarter valued at about $19,149,000. Finally, Oaktop Capital Management II L.P. bought a new stake in shares of Progress Software during the 2nd quarter valued at about $17,079,000.

Progress Software Company Profile

Progress Software Corporation (NASDAQ: PRGS) develops enterprise software designed to help organizations build, deploy, manage and secure business applications and digital services. Its portfolio supports application development, data connectivity, integration, file transfer, application performance monitoring and network management across cloud, hybrid and on-premises environments.

The company’s products and brands include OpenEdge for developing and deploying business applications; DataDirect for data connectivity; MOVEit for managed file transfer; WhatsUp Gold and Flowmon for network monitoring and visibility; Chef for infrastructure and application automation; Sitefinity for digital experience management; and Telerik and Kendo UI for user interface and development tools.