PROG Holdings Cuts Full-Year 2026 Sales Outlook by $70 Million
PROG Holdings cut its 2026 Purchasing Power segment revenue guidance by $70 million, lowering its outlook to $610–$660 million from $680–$730 million. The company also trimmed full-year sales guidance to $2.95–$3.07 billion ahead of its Investor Day, citing ASC 606 implementation.
1. Guidance Revision
PROG Holdings reduced its 2026 Purchasing Power segment revenue outlook by $70 million, now forecasting $610–$660 million versus $680–$730 million previously. Full-year sales guidance was lowered to $2.95–$3.07 billion from $3.02–$3.14 billion ahead of its Investor Day.
2. ASC 606 Impact
The revenue adjustments result from applying the ASC 606 standard, which alters the timing and recognition of segment sales. This accounting change prompted uniform reductions at both the high and low ends of the guidance range.
3. Market Reaction and Valuation
Shares fell over 7% in premarket trading and are trading 8.5% below their 20-day SMA but remain above the 100-day SMA. With a P/E of 10.8x and neutral momentum indicators, the stock shows value potential despite short-term pressure.
4. Upcoming Earnings and Analyst Outlook
The company is set to report first-quarter results on April 22, with EPS estimated at $0.78 (down from $0.90) and revenue around $735.7 million (up from $684.1 million). Analyst consensus remains a Buy with an average price target of $41.27.