Progress Software Corp. (PRGS) gave investors something to smile about on Tuesday, with shares climbing more than 7% in extended trading after the company delivered a strong earnings beat and notably bullish guidance for the year ahead.
The Quarter in Numbers
Progress Software posted earnings of $1.51 per share for the fourth quarter, comfortably beating the Street's $1.31 estimate. Revenue came in at $252.67 million, just shy of the $252.86 million consensus—close enough that nobody seemed to care given the earnings performance.
The operational details paint a picture of steady improvement. Annualized Recurring Revenue hit $852 million, up 2% year-over-year on a constant currency basis. Non-GAAP operating margin reached 38%, while GAAP operating margin landed at 15%. Diluted earnings per share jumped to 59 cents from just three cents in the same quarter last year, and non-GAAP diluted EPS rose to $1.51 from $1.33.
"2025 was our strongest year ever for Progress as we continue to execute on our long-term Total Growth strategy to invest and innovate, acquire and integrate, and drive customer success," said CEO Yogesh Gupta.
Looking Ahead
The real catalyst for the stock's move was the company's fiscal 2026 outlook. Progress Software expects adjusted EPS between $5.82 and $5.96, well above the $5.53 analyst estimate. Revenue guidance came in at $986 million to $1 billion, topping the $978.1 million consensus.
Shares rose 7.51% to $41.50 in after-hours trading on the news.
