Why Progress Software (PRGS) Is Up 5.7 Percent After Launching MarkLogic Server 12 With Advanced AI Tools

• Earlier this week at the Ai4 2025 conference, Progress Software announced the general availability of MarkLogic Server 12, featuring advanced semantic search and graph Retrieval-Augmented Generation (RAG) capabilities to ground generative AI in trusted enterprise data.
• The new release has already enabled customers across industries to report very large increases in LLM response accuracy and significant gains in information discovery efficiency, highlighting strong early adoption and real-world impact.
• We'll examine how the introduction of advanced AI-driven semantic search and RAG features could influence Progress Software's growth and profitability outlook.

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Progress Software Investment Narrative Recap

Investors in Progress Software generally need to see long-term value in the company’s pivot toward AI-enabled solutions and its disciplined M&A strategy to fuel recurring revenue growth. The MarkLogic Server 12 launch introduces advanced AI-powered search innovations, potentially enhancing short-term operational efficiency, a leading catalyst for Progress, but the biggest risk remains that rapid transitions to SaaS and AI could pressure margins if infrastructure costs rise faster than revenue. The net impact of the news is potentially supportive for the growth angle, but does not eliminate the key profitability risk.

Among recent announcements, the June launch of ShareFile’s AI-powered document management features aligns closely with the broader AI push seen in MarkLogic Server 12. Together, these initiatives reinforce Progress’s ambition to improve enterprise productivity and deliver measurable efficiency gains for clients, linking directly to the current catalyst of building predictable, recurring revenue streams. These efforts also heighten execution risks tied to complex tech integration and evolving customer needs.

In contrast, investors should especially keep in mind that while operational gains are promising, the pressure on gross margins from scaling cloud costs could...

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

Progress Software's narrative projects $1.0 billion in revenue and $138.9 million in earnings by 2028. This requires 5.5% yearly 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 53% upside to its current price.

Exploring Other Perspectives

Two fair value estimates from the Simply Wall St Community put Progress Software’s worth at US$70 to US$101.29 per share, well above recent trading levels. While many see AI and recurring revenue as growth drivers, execution risks, including escalating cloud expenses, could influence the company’s ability to realize that potential, so explore several viewpoints before deciding.

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 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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