Progress Software Corporation (PRGS) AI Stock Analysis

Progress Software Corporation provides software products for developing, deploying, and managing business applications. Its flagship OpenEdge platform supports mission-critical business application development and deployment. The company also offers Chef for DevOps and DevSecOps automation, along with developer tools such as .NET and JavaScript user interface components, reporting, and automated testing utilities. Through Kemp LoadMaster, Progress delivers application delivery and security load balancing solutions. Other offerings include MOVEit for managed file transfer, DataDirect for secure data connectivity, WhatsUp Gold for network infrastructure monitoring, and Flowmon for network security and visibility across hybrid cloud environments.

Between FY2021 and FY2025, revenue grew from $531.3M to $977.8M, reflecting a five-year revenue CAGR of 17.2%. In FY2025, revenue expanded 29.8% to $977.8M, while net income was $73.1M with a net margin of 7.5%, compared to $78.4M and a 14.8% net margin in FY2021. Gross margin shifted from 85.2% in FY2021 to 80.8% in FY2025. In the trailing twelve months ended August 31, 2026, revenue totaled $999.9M with an operating margin of 22.0%. In the latest quarter ended August 31, 2026, quarterly revenue fell 1.5% year-over-year, while quarterly earnings grew 25.0%.

As of August 31, 2026, Progress Software held $113.7M in cash and short-term investments and $1.27B in total debt, resulting in net debt of $1.15B. The company reported a current ratio of 0.80 and a debt-to-equity ratio of 2.39, with shareholders' equity of $530.0M against $2.30B in total assets. In FY2025, operating cash flow reached $235.2M and free cash flow was $229.5M. Capital allocation in FY2025 included $5.7M in capital expenditures, $105.2M in share buybacks, and $786,000 in dividends paid.

At the last close of $40.84 on October 16, 2026, Progress Software had a market capitalization of $1.67B and an enterprise value of $2.89B. The stock trades at a trailing P/E of 18.8x and a forward P/E of 6.5x, below the median of its US-listed Technology peers at 28.1x and 18.8x, respectively. Its EV-to-EBITDA multiple of 9.0x is also below the peer median of 16.6x. Over the trailing year, PRGS returned -9.0% compared to a 16.8% return for the S&P 500 (SPY), and over five years returned -15.3% versus 83.0% for the index.

Wall Street analyst ratings comprise 4 Strong Buy ratings and 1 Hold rating, with no Buy, Sell, or Strong Sell ratings. The mean price target is $56.20, which is 37.6% above the last close of $40.84. For the fiscal year ending November 30, 2026, analysts estimate revenue of $1.05B and EPS of $6.20, representing an 8.3% EPS growth estimate. Over the last 4 quarters, Progress Software exceeded EPS estimates in all 4 quarters.

This page is an AI-written research summary of Progress Software Corporation (PRGS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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