Progress Reports Q3 Earnings with Mixed Results and Announces Acquisition of Domo
Progress Software Corporation (PRGS) reported third-quarter earnings for fiscal year 2026, showing a revenue decline but improved profitability. Revenue fell to $246 million from the prior-year period due in part to currency effects and market conditions. However, non-GAAP EPS rose by 13% to $1.69 as cost management efforts helped expand operating margins to 43%. The company also reported strong cash flow generation with adjusted free cash flow of $87 million, up 17%, driven by better collections. Progress completed the acquisition of Domo for $400 million during Q3 and has begun integrating it into its AI-ready data platform. Management expects this to drive long-term growth but warned that near-term operating margins will face pressure due to lower-margin SaaS offerings from Domo and integration costs, which could reduce corporate gross and operating margins in fiscal year 2027. The company raised full-year revenue guidance by over $50 million to between $1.044 billion and $1.052 billion, citing the impact of the acquisition. It also expects non-GAAP EPS for FY2026 to range from $6.15 to $6.23.
Tickers: $PRGS
Topics: acquisitions arr_growth debt_management non-gaap_eps revenue