Progress Software Corp’s stock PRGS climbed about 9% in after-hours trading on Tuesday following the release of fiscal fourth-quarter and full-year 2025 results, bolstered by higher-than-expected earnings and solid revenue growth, though broader software sector pressures linger.
Progress Software shares were trading up around $42 in extended trading, bouncing from recent weakness. The stock has slipped from its 52-week peak near $65 but remains above its roughly $39 52-week low, reflecting mixed responses to earnings and macro headwinds affecting technology names, including persistent interest-rate concerns and software valuation reset.
Quarterly Results
Progress reported fiscal Q4 2025 revenue of about $252.7 million, an 18% increase year-over-year, slightly under the average analyst revenue estimate but still showing solid expansion in key recurring channels. Adjusted earnings per share came in at $1.51, above consensus forecasts of $1.31 and prior guidance. Annualized Recurring Revenue (ARR) rose to roughly $852 million, up modestly from the prior year, while net retention remained at 100%. Operating margin improved, and non-GAAP operating margin held robustly near 38% in the quarter.
Profit and Margins
On a GAAP basis, the company reported a profit of roughly $25.7 million for the quarter ended Nov. 30, 2025. Compared with last year’s figures, Progress showed meaningful top-line growth while keeping expense discipline, resulting in sustained profitability even as adjusted EPS outpaced expectations.
Full-Year 2025 Context
For the full fiscal year, Progress delivered revenue growth and reported improved cash flow metrics, reflecting progress on integrating acquisitions and recurring revenue expansion. ARR growth for the year was strong, though the pace slowed in the fourth quarter compared with earlier quarters of 2025 that posted robust year-on-year gains.
The year marked the continued integration of key acquisitions, including ShareFile and agentic RAG-focused Nuclia, intended to broaden Progress’s software portfolio and AI-centric offerings — initiatives management highlighted as strategic pillars.
Guidance
Progress provided fiscal 2026 guidance, projecting revenue between $986 million and $1.0 billion and adjusted EPS of $5.82 to $5.96, indicating continued growth expectations. The first quarter 2026 outlook was set with revenue of $244 million to $250 million and EPS of $1.56 to $1.62.
Market and Sector Context
Progress’s gains followed a mixed performance in the broader SaaS/software sector, where stocks have been volatile due to uncertainties around enterprise IT spending and artificial intelligence transition timing. Despite strong AI adoption demand, recessionary fears and funding tightening have weighed on valuations across technology names. Interest rate levels and corporate budget discipline remain key macro drivers affecting licensing and subscription renewals.
52-Week and Recent Trend
Over the past year, Progress shares have experienced a significant drawdown from highs near $65, pressured by intermittent profit-taking and broader technology sell-offs. However, recurring revenue strength and profitable growth have underpinned resilience relative to weaker peers.
