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Progress Software (PRGS) Soars 11.2%: Is Further Upside Left in the Stock?
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Progress Software (PRGS - Free Report) shares soared 11.2% in the last trading session to close at $33.15. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.4% loss over the past four weeks.
The increase in share price can be attributed to optimism about its fiscal second-quarter earnings, acquisitions, and AI-driven growth, though investors are still watching integration, organic growth, and debt reduction.
For the second quarter of fiscal 2026, Progress Software expects revenue in the range of $240 million to $246 million. The company projects non-GAAP diluted earnings per share of $1.47 to $1.53.
Progress Software is benefiting from strength in its product portfolio, comprising offerings such as OpenEdge, WhatsUp Gold, ShareFile, Loadmaster, MOVEit and DevTools. The company’s platform aids in developing and deploying mission-critical business applications. Progress is embedding AI capabilities across its products, enabling customers to improve business outcomes. M&A also remains a core pillar of growth. The integration of ShareFile has strengthened the company’s SaaS capabilities, expanded recurring revenues and enhanced profitability and cash flow, noted management. Progress continues to pursue disciplined, high-return acquisitions.
The recent gain does not necessarily mean the rally is over. If Progress Software continues to post strong earnings, successfully integrates acquisitions, expands its AI offerings, and maintains healthy cash flow, the stock could have additional upside. However, after an 11.2% jump, future gains are likely to depend more on execution than on optimism alone.
This business software maker is expected to post quarterly earnings of $1.49 per share in its upcoming report, which represents a year-over-year change of +6.4%. Revenues are expected to be $241.7 million, up 1.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Progress Software, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PRGS going forward to see if this recent jump can turn into more strength down the road.
Progress Software is a member of the Zacks Computer - Software industry. One other stock in the same industry, Commvault Systems (CVLT - Free Report) , finished the last trading session 4.6% higher at $140.04. CVLT has returned 21% over the past month.
Commvault's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.16. Compared to the company's year-ago EPS, this represents a change of +14.9%. Commvault currently boasts a Zacks Rank of #3 (Hold).
View the Zacks #1 Rank List
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Progress Software (PRGS) Soars 11.2%: Is Further Upside Left in the Stock?
Progress Software (PRGS - Free Report) shares soared 11.2% in the last trading session to close at $33.15. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 2.4% loss over the past four weeks.
The increase in share price can be attributed to optimism about its fiscal second-quarter earnings, acquisitions, and AI-driven growth, though investors are still watching integration, organic growth, and debt reduction.
For the second quarter of fiscal 2026, Progress Software expects revenue in the range of $240 million to $246 million. The company projects non-GAAP diluted earnings per share of $1.47 to $1.53.
Progress Software is benefiting from strength in its product portfolio, comprising offerings such as OpenEdge, WhatsUp Gold, ShareFile, Loadmaster, MOVEit and DevTools. The company’s platform aids in developing and deploying mission-critical business applications. Progress is embedding AI capabilities across its products, enabling customers to improve business outcomes. M&A also remains a core pillar of growth. The integration of ShareFile has strengthened the company’s SaaS capabilities, expanded recurring revenues and enhanced profitability and cash flow, noted management. Progress continues to pursue disciplined, high-return acquisitions.
The recent gain does not necessarily mean the rally is over. If Progress Software continues to post strong earnings, successfully integrates acquisitions, expands its AI offerings, and maintains healthy cash flow, the stock could have additional upside. However, after an 11.2% jump, future gains are likely to depend more on execution than on optimism alone.
This business software maker is expected to post quarterly earnings of $1.49 per share in its upcoming report, which represents a year-over-year change of +6.4%. Revenues are expected to be $241.7 million, up 1.8% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Progress Software, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PRGS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Progress Software is a member of the Zacks Computer - Software industry. One other stock in the same industry, Commvault Systems (CVLT - Free Report) , finished the last trading session 4.6% higher at $140.04. CVLT has returned 21% over the past month.
Commvault's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.16. Compared to the company's year-ago EPS, this represents a change of +14.9%. Commvault currently boasts a Zacks Rank of #3 (Hold).