AI-powered software firm Progress' Q3 revenue up 40%, beats estimates

Progress Software

29/09/2025 21:12

Overview

Progress Software fiscal Q3 revenue grows 40% yr/yr, beating analyst expectations

Adjusted EPS for fiscal Q3 beats consensus, reflecting operational efficiency

Company raises full-year guidance for revenue, EPS, and cash flow

Outlook

Progress Software raises FY25 revenue guidance to $975 mln - $981 mln

Company expects FY25 GAAP EPS of $1.38 - $1.45

Progress sees Q4 revenue between $250 mln and $256 mln

Company projects Q4 non-GAAP EPS of $1.29 - $1.35

Result Drivers

ARR GROWTH - Annualized Recurring Revenue increased 47% year-over-year, driven by strong customer retention and expansion

SHAREFILE INTEGRATION - Successful integration of ShareFile contributed significantly to revenue and earnings growth

AI INVESTMENT - Continued investment in AI capabilities, including agentic RAG technology, to enhance product offerings and customer value

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
$249.80 mln
Q3 Adjusted Revenue
Beat
$249.80 mln
$240.10 mln (6 Analysts)
Q3 Adjusted EPS
Beat
$1.5
$1.3 (6 Analysts)
Q3 EPS
$0.44
Q3 Adjusted Net Income
Beat
$65.72 mln
$57.90 mln (6 Analysts)
Q3 Adjusted Income from Operations
$99.42 mln
Q3 Adjusted Operating Margin
40.0%
Q3 ARR
$849 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Progress Software Corp is $72.50, about 42% above its September 26 closing price of $42.02

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nGNX4kc2vX

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)