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Progress Software Stock Jumps on AI Firm's Better-Than-Expected Results, Outlook
Key Takeaways
Shares of Progress Software ( PRGS ) jumped 8% Tuesday, a day after the provider of artificial intelligence (AI) infrastructure software reported better-than-expected results and issued a rosy profit outlook as customer demand grew.
The company posted first-quarter fiscal 2025 adjusted earnings per share (EPS) of $1.31, with revenue rising 29% year-over-year to $238.0 million. Analysts surveyed by Visible Alpha were looking $1.06 and $235.9 million, respectively.
Annualized recurring revenue soared 48% to $836 million, and the net retention rate above 100%, the second straight quarter it surpassed that mark.
CEO Yogesh Gupta said the higher sales were "again driven by our product portfolio across the board, with our data platform and infrastructure management products having a particularly solid quarter."
Progress Software Raises Full-Year Profit Forecast
The company expects full-year adjusted EPS to be between $5.25 and $5.37, up from its earlier estimate of $5.00 to $5.12.
Progress Software shares have struggled since hitting their all-time closing high in late November. Even with today's advance, they've fallen nearly 15% so far in 2025.
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