Does Rising Revenue Signal Enduring Pricing Power for Progressive (PGR) Amid Analyst Concerns?

• The Progressive Corporation recently reported earning US$64.93 billion in revenue and US$8.36 billion in net income for the nine months ended September 30, 2025, both higher than the prior year.
• This performance comes as some analysts raise concerns about the company's future pricing power and profitability, despite the recent growth in earnings.
• We'll examine how analyst concerns around pricing power and industry headwinds may alter Progressive's investment outlook.

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Progressive Investment Narrative Recap

Owning shares in Progressive means believing in the company's ability to adapt to competitive pressures and maintain its edge in analytics and pricing precision, even as industry conditions shift. The recent rise in revenue and net income is encouraging, but analyst downgrades point to concerns that weakening pricing power could impact future profitability, the short-term outlook now hinges on how well Progressive can defend its margins, while the principal risk remains prolonged margin pressure from inflation and fierce competition. Among recent updates, the announcement of Progressive's nine-month revenue climbing to US$64.93 billion and net income reaching US$8.36 billion stands out. This performance is impressive, yet the cautious analyst sentiment highlights just how critical it will be for Progressive to preserve its pricing strength during the current earnings cycle. Yet even with these results, investors should be aware of mounting concerns over pricing power and what it might mean for...

Read the full narrative on Progressive (it's free!)

Progressive's narrative projects $106.0 billion revenue and $9.6 billion earnings by 2028. This requires 8.8% yearly revenue growth and a $0.8 billion earnings decrease from $10.4 billion.

Uncover how Progressive's forecasts yield a $272.74 fair value, a 23% upside to its current price.

Exploring Other Perspectives

Thirteen individual fair value estimates from the Simply Wall St Community range from US$235 to nearly US$481 per share. With analysts now flagging the risk of future earnings declines if market margins continue to erode, you can see how opinions on Progressive’s outlook truly diverge, consider exploring these differing perspectives to inform your own view.

Explore 13 other fair value estimates on Progressive - why the stock might be worth over 2x more than the current price!

Build Your Own Progressive Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Progressive research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Progressive research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Progressive's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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