Stock of Progress Software Jumps on Better-than-Expected AI Firm’s Results and Outlook

Takeaways

• Progress Software reported strong annualized revenue recurring and net retention rates, and shares rose.
• The artificial-intelligence infrastructure software firm exceeded earnings and revenue forecasts.
• Progress Software also raised their full-year profit forecast.

The shares of Progress Software (PRGS), a provider of artificial intelligence infrastructure software, rose 8% on Tuesday after the company reported better than expected results and issued an optimistic profit outlook due to a growing customer demand.

The company’s adjusted earnings per Share (EPS) for the first quarter of fiscal 2025 was $1.31. Revenue grew 29% over the past year to $238.0 Million. Visible Alpha surveyed analysts who were expecting $1.06 per share and $235.9 millions respectively. 

The net retention rate was above 100% for the second quarter in a row, and the annualized revenue recurring rose by 48% to $836 Million. 

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 Forecast Profit

The company expects adjusted EPS of between $5.25-$5.37 for the full-year, up from its previous estimate of $5.00 to $50.12.

Since late November, when the shares of Progress Software reached their highest closing level ever, they have struggled. Even with today's advance, they've fallen nearly 15% so far in 2025.