How MarkLogic Server 12’s AI Enhancements Could Shape Progress Software’s (PRGS) Investment Outlook

• Progress Software Corporation recently announced at Ai4 2025 the general availability of MarkLogic Server 12, introducing advanced semantic search and retrieval-augmented generation (RAG) features for enterprise AI, with adoption already reported across key industries.
• Notably, organizations using these new capabilities have reported significant improvements in large language model response accuracy and a reduction in information discovery time for subject matter experts.
• We’ll now examine how the launch of MarkLogic Server 12 with semantic RAG technology could affect Progress Software’s investment outlook.

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Progress Software Investment Narrative Recap

To be a shareholder in Progress Software, you ultimately need conviction in its ability to drive sustained innovation in enterprise AI and data platforms, while managing the operational and financial risks that come with rapid expansion. The recent launch of MarkLogic Server 12 with advanced semantic search and RAG capabilities broadens its AI portfolio, but its impact on the most immediate catalyst, revenue growth from SaaS and AI integration, may be incremental in the near term. However, the key risk remains Progress Software's high leverage, which could intensify if new product rollouts or acquisitions require more capital without a commensurate earnings boost.

Among recent company announcements, the July 2025 update to Progress ShareFile, with its enhanced features for accounting professionals, is particularly relevant. This move further reinforces Progress Software's focus on recurring SaaS revenue, a stated foundation for potential margin and growth improvement following AI and data innovation initiatives.

In contrast, investors should be mindful that execution missteps in SaaS adoption, especially if cloud infrastructure costs escalate, could...

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

Progress Software's outlook indicates $1.0 billion in revenue and $138.9 million in earnings by 2028. This projection assumes 5.5% annual revenue growth and an $81.3 million increase in earnings from the current $57.6 million.

Uncover how Progress Software's forecasts yield a $70.00 fair value, a 50% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members offered two fair value estimates for Progress Software between US$70.00 and US$102.58 per share. While these opinions vary, the company’s recent AI-driven innovation could reshape future revenue drivers, consider how changing technology adoption might influence the assessments you see here.

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

Build Your Own Progress Software 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 Progress Software research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Progress Software research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Progress Software'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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