Progress Software raises fiscal 2026 outlook after strong Q2 results
Progress Software reported second-quarter revenue of $253 million, up 7% year-over-year, and raised its fiscal year 2026 guidance. The company reported annualized recurring revenue of $868 million, up 2% year-over-year, with a net retention rate of 100% and diluted earnings per share of $0.50, up 28% from the prior-year quarter. CEO Yogesh Gupta attributed performance to broad-based demand and momentum in AI-powered offerings. CFO Anthony Folger noted revenue outperformance driven by AI products and said the company paid down debt aggressively to bring its trailing twelve-month net leverage ratio to 2.9X while repurchasing $35 million of shares.
Key facts
- Q2 revenue $253 million, up 7% year-over-year
- ARR $868 million, up 2% year-over-year
- Net retention rate 100%
- Diluted EPS $0.50, up 28% versus prior-year Q2
- Non-GAAP diluted EPS $1.62, up 16% versus prior-year Q2
- Operating margin 18%, non-GAAP operating margin 40%
- Trailing twelve-month net leverage ratio 2.9X
- Share repurchase of $35 million during Q2
- FY 2026 revenue guidance $990–$1,002 million (updated from $988–$1,000 million)
- FY 2026 diluted EPS guidance $1.60–$1.74 (lowered from $1.71–$1.87)
Why it matters
The raised revenue guidance reflects momentum in Progress's AI-powered product portfolio and stronger-than-expected customer demand; the company's aggressive debt paydown and share buybacks signal confidence in cash generation and capital allocation priorities.
Share
Derived from 8-K filed 2026-06-30. Not investment advice. View the source filing on SEC.gov →