Progress Software Surges on Strong Q3 Earnings and Raised Guidance
The enterprise software company beat Wall Street estimates, reporting a 40% revenue increase driven by its ShareFile acquisition and AI investments.
Progress Software (NASDAQ: PRGS) saw its shares climb in after-hours trading after the company reported third-quarter financial results that significantly surpassed analyst expectations and raised its full-year guidance.
The application development and digital experience technologies company announced , a substantial 40% increase year-over-year, comfortably beating the consensus estimate of $240.3 million. Non-GAAP diluted earnings per share came in at $1.50, a 19% increase from the prior year and well ahead of the $1.30 per share analysts had projected.
The impressive performance was largely attributed to the successful integration of its ShareFile acquisition, which contributed significantly to the company's Annualized Recurring Revenue (ARR) of $849 million. The company also highlighted its ongoing investments in AI capabilities, including the implementation of agentic RAG technology across its product portfolio, designed to help customers leverage Generative AI.
Following the strong quarterly performance, Progress Software raised its full-year 2025 guidance. The company now projects revenue between $975 million and $981 million, and non-GAAP diluted EPS in the range of $5.50 to $5.56. In a move signaling confidence in its financial health, the company also announced a $200 million increase to its share repurchase authorization.
Wall Street has reacted positively to the news. The stock has a from six analysts, with an average price target that suggests significant potential upside from its current price. Analysts have pointed to the company's robust growth metrics and strong demand as key drivers for future performance. The consistent net retention rate of 100% further underscores the strength of its customer relationships and business model, positioning Progress for sustained growth.