Progress Software (PRGS) Targets $1 Billion Revenue for FY 2026, Shares Rise 7%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 21 2026
0mins
Should l Buy PRGS?
Source: seekingalpha
- Strong Quarterly Performance: Progress Software reported robust results for Q4 2025, leading to a 7% rise in premarket trading, reflecting market confidence in its future growth trajectory.
- 2026 Revenue Guidance: The company projects FY 2026 revenue between $986 million and $1 billion, representing a 1%-2% increase over 2025, marking a significant milestone in its revenue growth strategy.
- Free Cash Flow Outlook: Unlevered free cash flow is expected to reach nearly $320 million at the midpoint for FY 2026, showcasing the company's strong cash generation capabilities driven by AI demand, enhancing shareholder value potential.
- AI Impact Assessment: CEO Yogesh Gupta noted that while AI hype has raised concerns about software disruption, he does not foresee significant near-term changes, emphasizing that current AI investments are still limited to a small number of tech firms, indicating the market is in its early stages.
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Analyst Views on PRGS
Wall Street analysts forecast PRGS stock price to rise
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 35.660
Low
45.00
Averages
45.00
High
45.00
Current: 35.660
Low
45.00
Averages
45.00
High
45.00
About PRGS
Progress Software Corporation is a provider of artificial intelligence (AI)-powered digital experience and infrastructure software. The Company provides software products that enable its customers to develop, deploy and manage responsible AI-powered applications and digital experiences. It also offers retrieval-augmented generation (RAG) -as-a-service products, enabling organizations to automatically leverage their own proprietary business information to retrieve verifiable, accurate answers using GenAI. Its products include Sitefinity, Corticon, MOVEit, ShareFile, Podio, Kendo UI, Telerik, Kemp LoadMaster, Flowmon, WhatsUp Gold, Chef Infrastructure Management, Chef Desktop, Chef App Delivery, MarkLogic, Semaphore, OpenEdge, DataDirect Connectors, Hybrid Data Pipeline, OpenAccess, and MOVEit Cloud. Corticon is a decision automation platform that transforms user experiences by streamlining and automating complex business rules without having to code.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Significant Profit Surge: Operating income soared 78% to $38.4 million, with operating margin rising by 5 percentage points to 15%, indicating substantial improvements in cost control and profitability, which bolstered investor confidence.
- Cash Flow Growth: Operating cash flow skyrocketed 220% to $62.8 million, reflecting the company's success in financial management and operational efficiency, which is expected to provide strong support for future investments and expansions.
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- High Demand for Call Options: Notably, the $20 strike call option expiring on March 20, 2026, saw a trading volume of 18,026 contracts today, representing about 1.8 million underlying shares, suggesting heightened investor expectations for BTDR's stock price appreciation.
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- Active Call Options Trading: The $47.50 strike call option expiring on February 20, 2026, recorded a trading volume of 2,192 contracts today, representing approximately 219,200 underlying shares, indicating optimistic sentiment among investors regarding PRGS's future performance.
See More
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- Natural Gas Surge: Natural gas prices surged over 21% to a six-week high, driven by an impending cold front in the eastern U.S. that boosts heating demand, potentially disrupting production and further stimulating related stock gains.
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