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Progress Software (PRGS) Reliance on International Sales: What Investors Need to Know

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Did you analyze how Progress Software (PRGS - Free Report) fared in its international operations for the quarter ending November 2025? Given the widespread global presence of this business software maker, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.

In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.

Presence in international markets can act as a hedge against domestic economic downturns and provide access to faster-growing economies. However, this diversification also brings complexities due to currency fluctuations, geopolitical risks and differing market dynamics.

Upon examining PRGS' recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

The company's total revenue for the quarter stood at $252.67 million, increasing 17.5% year over year. Now, let's delve into PRGS' international revenue breakdown to gain insights into the significance of its operations beyond home turf.

Trends in PRGS' Revenue from International Markets

Latin America accounted for 2.2% of the company's total revenue during the quarter, translating to $5.54 million. Revenues from this region represented a surprise of -11.77%, with Wall Street analysts collectively expecting $6.28 million. When compared to the preceding quarter and the same quarter in the previous year, Latin America contributed $6.22 million (2.5%) and $5.68 million (2.6%) to the total revenue, respectively.

During the quarter, Europe, Middle East and Africa contributed $72.59 million in revenue, making up 28.7% of the total revenue. When compared to the consensus estimate of $69.04 million, this meant a surprise of +5.14%. Looking back, Europe, Middle East and Africa contributed $68.34 million, or 27.4%, in the previous quarter, and $67.63 million, or 31.5%, in the same quarter of the previous year.

Of the total revenue, $16.15 million came from Asia Pacific during the last fiscal quarter, accounting for 6.4%. This represented a surprise of +35.13% as analysts had expected the region to contribute $11.95 million to the total revenue. In comparison, the region contributed $11.83 million, or 4.7%, and $9.21 million, or 4.3%, to total revenue in the previous and year-ago quarters, respectively.

International Revenue Predictions

Wall Street analysts expect Progress Software to report a total revenue of $245.51 million in the current fiscal quarter, which suggests an increase of 3.2% from the prior-year quarter. Revenue shares from Latin America, Europe, Middle East and Africa and Asia Pacific are predicted to be 2.2%, 28.6%, and 6.4%, corresponding to amounts of $5.35 million, $70.1 million, and $15.59 million, respectively.

For the entire year, the company's total revenue is forecasted to be $989.52 million, which is an improvement of 1.2% from the previous year. The revenue contributions from different regions are expected as follows: Latin America will contribute 2.2% ($21.62 million), Europe, Middle East and Africa 28.6% ($283.27 million) and Asia Pacific 6.4% ($63.02 million) to the total revenue.

Key Takeaways

Relying on global markets for revenues presents both prospects and challenges for Progress Software. Therefore, scrutinizing its international revenue trends is key to effectively forecasting the company's future outlook.

In a world where international interdependencies and geopolitical conflicts are ever-increasing, Wall Street analysts closely monitor these trends for companies having international presence to adjust their earnings forecasts. Of course, there are several other factors, including a company's standing within its home borders, that influence analysts' earnings forecasts.

At Zacks, we place significant importance on a company's evolving earnings outlook. This is based on empirical evidence demonstrating its strong influence on a stock's short-term price movements. Invariably, there exists a positive relationship -- an upward revision in earnings estimates is typically mirrored by a rise in the stock price.

With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.

At the moment, Progress Software has a Zacks Rank #3 (Hold), signifying that its performance may align with the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

A Review of Progress Software's Recent Stock Market Performance

The stock has witnessed a decline of 2.5% over the past month versus the Zacks S&P 500 composite's an increase of 0.2%. In the same interval, the Zacks Computer and Technology sector, to which Progress Software belongs, has registered a decrease of 0.2%. Over the past three months, the company's shares saw a decrease of 0.5%, while the S&P 500 increased by 2.9%. In comparison, the sector experienced an increase of 2.8% during this timeframe.


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