Why Progress Software Popped Today
Key Points
Progress Software's cash flow is growing at a rapid clip.
CEO Yogesh Gupta says the software star is well-positioned in an artificial intelligence-driven world.
- 10 stocks we like better than Progress Software ›
Shares of Progress Software (NASDAQ: PRGS) jumped on Wednesday after the tech developer announced solid fourth-quarter financial results and issued an upbeat forecast for the year ahead.
By the close of trading, Progress' stock price was up more than 10%.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
AI-driven growth in sales and profits
Progress' revenue climbed 18% year over year to $253 million in the fourth quarter.
The software specialist's operating income surged 78% to $38.4 million, as its operating margin increased by 5 percentage points to 15%.
Better still, Progress' operating cash flow rocketed 220% higher to $62.8 million.
CEO Yogesh Gupta said Progress' results demonstrate the relevance of its artificial intelligence (AI)-focused offerings in "an AI-driven world for businesses of all sizes."
All told, Progress' adjusted earnings per share, which exclude stock-based compensation and acquisition-related expenses, rose 14% to $1.51. That was well above Wall Street's estimates, which had called for adjusted per-share earnings of $1.31.
Management sees more growth ahead
Progress guided for revenue of $986 million to $1 billion in fiscal 2026. The company also expects to generate full-year earnings per share of $1.74 to $1.91 and cash from operations of $263 million to $277 million.
"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," Gupta said.
Should you buy stock in Progress Software right now?
Before you buy stock in Progress Software, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Progress Software wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $470,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,091,605!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 192% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of January 21, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
