Progress Software Corporation reported fiscal first‑quarter 2026 revenue of $247.799 million, a 4% year‑over‑year increase, and adjusted earnings per share of $1.60, beating the consensus estimate of $1.57. Net retention stood at 99% and the non‑GAAP operating margin expanded to 41%, underscoring the company’s ability to generate high‑margin recurring revenue while managing costs.
The revenue lift was driven by continued growth in the ShareFile SaaS platform and incremental revenue from the Sitefinity and OpenEdge product lines. Software license revenue grew 16% year‑over‑year, while maintenance, SaaS, and services revenue remained flat or slightly declined, reflecting a shift toward higher‑margin subscription offerings. Management highlighted strong demand for AI‑enabled products, which has become a key differentiator in the infrastructure software market.
Comparing to the prior year, Q1 2025 revenue was $238 million and adjusted EPS was $1.31, indicating a modest but steady acceleration in top‑line and earnings growth. The 4% revenue increase in 2026 represents a slight deceleration from the 5% growth seen in Q1 2025, but the company’s margin expansion and high retention rate suggest continued operational strength.
Progress raised its full‑year 2026 guidance, projecting adjusted EPS of $5.91 to $6.03 and sales of $988 million to $1.00 billion. The company also confirmed plans to repay $60 million of debt and to continue share repurchases, reinforcing its commitment to capital allocation and shareholder returns.
CEO Yogesh Gupta said the company’s momentum from 2025 is carrying over into FY26, noting that “our Q1 results reflect the durability of our model – driving profitable growth, generating robust cash flow, strengthening our balance sheet, and returning capital to shareholders.” CFO Anthony Folger added that annual recurring revenue growth is expected to remain in line with overall revenue growth for the full year.
Investors responded positively to the earnings release, with analysts citing the EPS beat, the raised full‑year guidance, and the company’s strong profitability and AI focus as key drivers of the favorable reaction.
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