Why Progress Software (PRGS) Is Up 16.9% After Early ShareFile Integration And AI Expansion

• Progress Software recently reported strong quarterly results, underpinned by recurring revenue from its subscription model, high‑margin infrastructure software, and the ahead‑of‑schedule integration of its largest acquisition, ShareFile.
• The addition of Nuclia’s agentic RAG technology and continued customer reliance on Progress’s mission‑critical products highlight how AI and acquisitions are becoming central to its business model.
• Next, we’ll explore how Progress Software’s early completion of the ShareFile integration could influence its existing investment narrative around growth and efficiency.

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Progress Software Investment Narrative Recap

To own Progress Software, you have to believe that its recurring revenue, disciplined acquisitions and expanding AI capabilities can collectively support steady, if modest, compounding over time. The latest earnings beat and ahead of schedule ShareFile integration reinforce the near term catalyst around efficiency and AI driven cross sell, while the biggest current risk remains the company’s reliance on acquisitions in a competitive M&A market. On balance, this news appears supportive rather than transformational for that thesis.

Among recent developments, the early completion of the ShareFile integration stands out as most relevant. It ties directly into expectations that Progress can extract cost synergies while layering subscription and SaaS revenues on top of its infrastructure base. Combined with Nuclia’s agentic RAG technology, it gives the company more to offer existing customers, which is central to the current catalyst around improving margins and deepening customer relationships without relying solely on organic growth.

Yet despite the strong quarter, you should also be aware that rising acquisition dependence and legacy product exposure could still...

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

Progress Software's narrative projects $1.0 billion revenue and $138.9 million earnings by 2028. This requires 5.5% yearly revenue growth and a $81.3 million earnings increase from $57.6 million today.

Uncover how Progress Software's forecasts yield a $70.00 fair value, a 71% upside to its current price.

Exploring Other Perspectives

Some of the lowest ranked analysts paint a tougher picture, assuming revenue of about US$1.0 billion and earnings of roughly US$152 million by 2028, reminding you that views on Progress’s acquisition risks and cloud competition can differ widely and may shift again after this latest AI and ShareFile driven update.

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

The Verdict Is Yours

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Progress Software research is our analysis highlighting 2 key rewards and 2 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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