Progress Software (NASDAQ:PRGS) Earns "Buy" Rating from DA Davidson

Key Points

• DA Davidson reaffirmed its “Buy” rating on Progress Software and set a $55 price target, implying approximately 49% upside from the reported $36.90 share price. The broader analyst consensus is “Moderate Buy,” with an average target of $52.17.
• Progress Software beat quarterly earnings expectations, reporting $1.69 EPS versus the $1.52 consensus, although revenue of $246.01 million slightly missed estimates and declined 1.5% year over year.
• The company’s fiscal 2026 outlook is broadly in line with expectations, while investors remain focused on limited revenue growth and the execution risks associated with its enterprise AI strategy.

Progress Software (NASDAQ:PRGS - Get Free Report)'s stock had its "buy" rating reiterated by equities research analysts at DA Davidson in a research report issued on Friday, Benzinga reports. They presently have a $55.00 price target on the software maker's stock. DA Davidson's price objective indicates a potential upside of 49.05% from the company's current price.

PRGS has been the subject of a number of other research reports. Oppenheimer dropped their price objective on Progress Software from $57.00 to $50.00 and set an "outperform" rating for the company in a research note on Wednesday, July 1st. Guggenheim reissued a "buy" rating and set a $83.00 price objective on shares of Progress Software in a research note on Wednesday, July 1st. Jefferies Financial Group raised Progress Software to a "hold" rating in a research note on Friday, September 25th. Finally, Weiss Ratings raised Progress Software from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Tuesday, August 11th. Five equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $52.17.

Progress Software Price Performance

PRGS traded up $0.32 during midday trading on Friday, hitting $36.90. The stock had a trading volume of 1,008,719 shares, compared to its average volume of 851,341. The company has a market cap of $1.51 billion, a P/E ratio of 17.00, a price-to-earnings-growth ratio of 1.68 and a beta of 0.89. Progress Software has a 1 year low of $23.82 and a 1 year high of $47.37. The company has a debt-to-equity ratio of 2.55, a quick ratio of 0.81 and a current ratio of 0.81. The business has a fifty day moving average of $42.09 and a 200 day moving average of $35.10.

Progress Software (NASDAQ:PRGS - Get Free Report) last released its quarterly earnings data on Wednesday, September 30th. The software maker reported $1.69 earnings per share for the quarter, beating analysts' consensus estimates of $1.52 by $0.17. The firm had revenue of $246.01 million during the quarter, compared to analyst estimates of $247.33 million. Progress Software had a return on equity of 43.68% and a net margin of 9.24%.The business's quarterly revenue was down 1.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.44 earnings per share. Progress Software has set its Q4 2026 guidance at 1.240-1.330 EPS and its FY 2026 guidance at 6.150-6.230 EPS. As a group, equities analysts forecast that Progress Software will post 4.77 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Progress Software

A number of hedge funds and other institutional investors have recently made changes to their positions in PRGS. Geneos Wealth Management Inc. bought a new position in shares of Progress Software during the first quarter valued at approximately $26,000. Public Employees Retirement System of Ohio bought a new position in shares of Progress Software during the second quarter valued at approximately $28,000. Parallel Advisors LLC raised its holdings in shares of Progress Software by 142.0% during the first quarter. Parallel Advisors LLC now owns 1,113 shares of the software maker's stock valued at $29,000 after acquiring an additional 653 shares in the last quarter. Hantz Financial Services Inc. raised its holdings in shares of Progress Software by 194.1% during the fourth quarter. Hantz Financial Services Inc. now owns 747 shares of the software maker's stock valued at $32,000 after acquiring an additional 493 shares in the last quarter. Finally, Rockefeller Capital Management L.P. raised its holdings in shares of Progress Software by 192.7% during the fourth quarter. Rockefeller Capital Management L.P. now owns 1,332 shares of the software maker's stock valued at $57,000 after acquiring an additional 877 shares in the last quarter.

Trending Headlines about Progress Software

Here are the key news stories impacting Progress Software this week:

• Positive Sentiment: Q3 earnings exceeded expectations. Progress reported adjusted EPS of $1.69, ahead of the $1.49–$1.52 analyst consensus and well above $1.50 a year earlier. The earnings beat is the primary positive catalyst for the shares. Progress Software Beats Q3 Earnings Estimates
• Positive Sentiment: Analyst support improved the outlook. DA Davidson reaffirmed a “Buy” rating and set a $55 price target, implying substantial upside from the stock’s recent level. A broader analyst article also characterized Progress as one of the technology stocks attracting bullish sentiment. DA Davidson Reaffirms Buy Rating
• Positive Sentiment: Progress introduced expanded Agentic RAG capabilities. The new features are designed to connect enterprise knowledge across business systems and support AI agents and large language models without requiring customers to rebuild existing deployments. The announcement reinforces the company’s strategy to benefit from enterprise AI adoption. Progress Software Announces Agentic RAG Capabilities
• Positive Sentiment: Management will highlight AI and accessibility initiatives. Progress ShareFile is scheduled to co-host a session with Applause on AI’s role in accessibility compliance, providing additional visibility for its AI and enterprise software offerings. Progress Software and Applause Accessibility Session
• Neutral Sentiment: Full-year guidance was broadly in line. Progress expects fiscal 2026 adjusted EPS of $6.15–$6.23, compared with a FactSet estimate of $6.18. Fourth-quarter guidance calls for EPS of $1.24–$1.33.
• Negative Sentiment: Revenue slightly missed expectations and declined year over year. Q3 revenue was approximately $246 million versus the $247.3 million consensus, down 1.5% from the prior-year period. Shares initially moved lower following the results, suggesting investors remain focused on limited top-line growth.
• Negative Sentiment: AI execution risks remain. One analysis argued that competitive and adoption risks related to AI warrant a larger valuation discount, tempering the otherwise favorable earnings and analyst signals. Progress Software AI Risk Analysis

Progress Software Company Profile

Progress Software Corporation develops enterprise software that helps organizations build, deploy, integrate, and manage business applications and digital services. Its offerings are designed to support application development, data connectivity, integration, messaging, user experiences, and infrastructure performance across on-premises, cloud, and hybrid environments.

The company's product portfolio includes OpenEdge for application development and deployment, DataDirect for data connectivity, MOVEit for managed file transfer, WhatsUp Gold for network monitoring, and Sitefinity for digital experience management.