Progress Software Q3 revenue falls on weakness in maintenance, SaaS
PRGS•Progress Software reported fiscal Q3 revenue of $246 million, down 2%, while adjusted EPS of $1.69 beat the $1.52 analyst estimate. It raised FY26 revenue guidance to $1.044 billion-$1.052 billion.
1. Quarterly results
Fiscal Q3 annual recurring revenue was $873 million. Revenue from maintenance, SaaS and professional services declined 2% to $182 million, while software license revenue was flat. Total costs of revenue fell 11% to $42 million, lifting gross profit 1% to $204 million.
2. Updated outlook
Progress raised its FY26 revenue guidance to $1.044 billion-$1.052 billion from $990 million-$1.002 billion. It lowered FY26 GAAP EPS guidance to $1.18-$1.28 and raised non-GAAP EPS guidance to $6.15-$6.23. For Q4, it forecast revenue of $297 million-$305 million and a GAAP diluted loss per share of $0.41-$0.32.
3. Reported expenses
Expenses related to responding to a cyber vulnerability rose to $3.5 million from $0.7 million, while acquisition-related expenses increased to $3.9 million from $0.8 million.
