Analysts have reduced their fair value estimate for Progress Software from US$50 to US$45, citing updated assumptions around the discount rate, revenue growth, profit margins and future P/E levels.
What's in the News
- Progress was included as one of nine vendors in The Forrester Wave: Digital Experience Platforms, Fourth Quarter 2025, with its Agentic RAG earning the highest score of 5.0 in the Search criterion (Key Developments).
- The company announced the fourth quarter 2025 release of its Telerik and Kendo UI toolsets, adding an Agentic UI Generator and new AI features aimed at supporting faster, AI assisted application development across .NET and JavaScript frameworks (Key Developments).
- Progress launched Progress Automate MFT, a SaaS secure file transfer automation platform focused on reducing on premises infrastructure needs, administrative effort and total cost of ownership while supporting SOC 2 Type 1 and HIPAA standards (Key Developments).
- Progress announced early access for Progress Agentic RAG for Sitefinity, bringing multilingual, RAG based AI capabilities into its CMS to support prompt driven, personalized digital experiences built from enterprise content (Key Developments).
- Progress Agentic RAG became available in AWS Marketplace, giving AWS customers a no code SaaS RAG platform that connects to Bedrock models and is designed to extract verifiable insights from unstructured, multilingual data (Key Developments).
Valuation Changes
- Fair Value Estimate reduced from US$50 to US$45, reflecting updated model assumptions.
- Discount Rate adjusted slightly higher from 10.61% to 10.73%, implying a modestly higher required return in the valuation model.
- Revenue Growth kept broadly similar, moving from 2.25% to 2.29% in the long term assumptions.
- Net Profit Margin nudged up from 18.92% to 19.46%, indicating a slightly stronger long run profitability assumption.
- Future P/E moved lower from 14.59x to 12.79x, pointing to a more conservative multiple applied to future earnings.
Have other thoughts on Progress Software?
Create your own narrative on this stock, and estimate its Fair Value using our Valuator tool.
Create NarrativeDisclaimer
AnalystLowTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystLowTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystLowTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.