Progress Software has capped off its fiscal 2025 with a robust final quarter, surpassing its own financial targets. The company is now on the cusp of achieving a significant benchmark: one billion dollars in annual revenue, a surge largely fueled by strategic acquisitions. This performance raises a pivotal question for investors: can the firm’s organic growth sustain this momentum?
Key Financial Results at a Glance
- Q4 Revenue: $253 million (an 18% year-over-year increase)
- Fiscal 2025 Revenue: $978 million (a 30% increase over the prior year)
- Adjusted EPS (Q4): $1.51 (significantly exceeding guidance)
- Fiscal 2026 Revenue Outlook: $986 million to $1 billion
Strategic Acquisitions Drive Annual Surge
The company’s full-year revenue leap to $978 million is attributed by management primarily to the full integration of the ShareFile acquisition and the performance of its broader product portfolio. Annual recurring revenue (ARR) reached $852 million by year-end, representing a pro-forma growth rate of approximately two percent.
The fourth quarter itself saw revenues climb to $253 million, hitting the high end of the company’s forecast. Progress Software delivered an even more pronounced beat on profitability, with adjusted earnings per share coming in at $1.51. This figure was $0.16 above the top end of its original guidance range.
A Measured Outlook for the Coming Year
For the new fiscal year 2026, management is targeting the billion-dollar revenue threshold for the first time. The provided guidance of $986 million to $1 billion, however, suggests a more modest growth rate of just one to two percent compared to fiscal 2025. The company anticipates adjusted EPS in the range of $5.82 to $5.96, with an operating margin projected to hold steady at around 39%.
Should investors sell immediately? Or is it worth buying Progress Software?
Looking at the immediate quarter ahead, Progress expects Q1 2026 revenue between $244 million and $250 million. Adjusted EPS for this period is forecast to be between $1.56 and $1.62.
Insider Activity and Strategic AI Integration
Separately, recent regulatory filings disclosed stock transactions by Chief Financial Officer Anthony Folger. Under a trading plan established in April 2025, Folger sold a total of 6,000 shares at prices ranging from $39.88 to $40.78. This followed the grant of 22,000 performance-based restricted stock units (RSUs) on February 1.
On the strategic front, Progress is intensifying its focus on artificial intelligence. The company recently completed the implementation of its “Agentic RAG” (Retrieval-Augmented Generation) technology, designed to optimize AI-powered digital processes within its infrastructure software. This initiative is being supported by new cloud-native solutions for data transfer.
As Progress Software approaches the billion-dollar revenue milestone, it stands at a pivotal point. The central challenge for fiscal 2026 will be maintaining its strong 39% margin profitability while nurturing the organic growth potential of its newly integrated AI capabilities.
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