Progress Software (PRGS) Q3 FY2026 earnings

Reported results

• Revenue of $246 million decreased 2% year-over-year on both an actual and constant currency basis.
• ARR of $873 million increased 1% year-over-year on a constant currency basis.
• GAAP operating margin was 19%; non-GAAP operating margin was 43%.
• GAAP diluted earnings per share was $0.55, up 25% from $0.44 in Q3 2025; non-GAAP diluted earnings per share was $1.69, up 13% from $1.50.
• Adjusted free cash flow was $87.161 million, up 17% from $74.428 million in Q3 2025.
• Cash from operations was $88.011 million, up 20% from $73.446 million in Q3 2025.

Guidance

• FY 2026 (updated September 30, 2026): GAAP revenue $1,044–$1,052 million; non-GAAP revenue $1,044–$1,052 million.
• FY 2026 (updated): GAAP diluted earnings per share $1.18–$1.28; non-GAAP diluted earnings per share $6.15–$6.23.
• FY 2026 (updated): GAAP operating margin 13%; non-GAAP operating margin 38%.
• FY 2026 (updated): GAAP cash from operations $274–$282 million; non-GAAP adjusted free cash flow $275–$283 million; non-GAAP unlevered free cash flow $330–$338 million.
• Q4 2026: GAAP diluted loss per share $(0.41)–$(0.32); non-GAAP diluted earnings per share $1.24–$1.33.
• Q4 2026: GAAP revenue $297–$305 million; non-GAAP revenue $297–$305 million.

Notes

Domo’s AI and Data Platform Business acquisition closed during the quarter. FY 2026 non-GAAP guidance includes preliminary estimates relating to Domo intangible asset valuation; final amounts unavailable until internal procedures complete. Company expects continued expenses related to MOVEit Vulnerability legal and professional services in future periods.

Price and volatility reaction

The stock moved -8.5% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -14.9 vol points across the event (constant-maturity series — not the front-week crush).

Source

The figures above come from the earnings release the company filed with the SEC on 2026-09-30 (8-K, Item 2.02). Read the original filing on sec.gov.