Progress Software (PRGS) Is Up 12.4% After Q3 Beat and Latin America Expansion – What's Changed

• In the past week, Progress Software reported strong third-quarter results, increased its annual guidance, and announced the opening of a new Center of Excellence in Heredia, Costa Rica to serve as a regional hub for technical support and corporate functions. This expansion, alongside new AI-driven products and enhanced customer offerings, underscores the company's focus on recurring revenue growth and international market presence.
• Progress Software's recent momentum in annual recurring revenue and integration of AI solutions highlights its positioning to capture opportunities in the evolving enterprise software sector.
• We’ll look at how robust recurring revenue growth and the Latin America expansion shape Progress Software’s updated investment narrative.

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Progress Software Investment Narrative Recap

To own Progress Software shares, you need confidence in the company’s ability to execute its integration and expansion strategies while driving recurring revenue growth, particularly as it leverages AI and cloud-based offerings. The recent Costa Rica Center of Excellence launch strengthens Progress’s operational presence in Latin America and expands its support infrastructure, but the most important short-term catalyst remains successful execution on recurring revenue growth. The biggest risk continues to be cost pressures and execution complexity tied to large-scale integrations, neither of which appear materially altered by this news event.

Among recent announcements, the launch and early customer testing of the Progress OpenEdge MCP Connector is particularly relevant. This AI-powered development tool is designed to accelerate application modernization for Progress’s large OpenEdge user base, complementing the company’s broader push into enterprise AI offerings and user productivity, a theme directly supportive of its short-term growth objectives.

However, investors should remember that despite the new center and product launches, operational risks with large integrations like ShareFile remain critical for...

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

Progress Software's outlook anticipates $1.0 billion in revenue and $138.9 million in earnings by 2028. This projection relies on a 5.5% annual revenue growth rate and a $81.3 million earnings increase from the current $57.6 million.

Uncover how Progress Software's forecasts yield a $70.00 fair value, a 51% upside to its current price.

Exploring Other Perspectives

Two Simply Wall St Community fair value estimates span from US$70 to US$92, both above the recent share price. While the Community spots potential, cost management during expansion remains a point you cannot ignore when forming your own view.

Explore 2 other fair value estimates on Progress Software - why the stock might be worth just $70.00!

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 2 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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