Progress Software stock gets a Strong Buy upgrade from Zacks

Published on 10/08/2026 at 00:44 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Zacks lifted Progress Software stock to Strong Buy on October 7, 2026. Fiscal Q3 EPS reached USD 1.69 as FY 2026 revenue guidance rose.

PRGS, US7433121008, Illustration mit AI erstellt.

Progress Software (ISIN US7433121008) was trading at USD 37.21 on Nasdaq on October 7, 2026, while a fresh analyst upgrade put the software company back on the radar. According to MarketBeat on October 7, Zacks Research raised its rating from Hold to Strong Buy.

Zacks shifts the rating

The upgrade contrasts with a stock price that remains 21.3 percent below its 52-week high of USD 47.31, while the 52-week low stands at USD 23.82. Progress Software had a market capitalization of USD 1.5 billion on October 7, 2026.

The broader analyst view is less aggressive than the new Zacks label. MarketBeat lists eight analysts, with one Strong Buy, five Buy and two Hold ratings, producing a Moderate Buy consensus and an average target of USD 52.17. That average target lies 40.2 percent above the October 7 price.

Guidance rises with Domo

The company had already delivered a substantial earnings update on September 30, 2026. In its fiscal Q3 2026 release, Progress Software reported revenue of USD 246 million for the quarter ended August 31, 2026, alongside non-GAAP EPS of USD 1.69.

The earnings figure exceeded the prior guidance range of USD 1.53-1.59, while annual recurring revenue reached USD 873 million and the non-GAAP operating margin was 43 percent. The company also raised fiscal 2026 revenue guidance from USD 990 million-1,002 million to USD 1,044 million-1,052 million, and lifted non-GAAP EPS guidance from USD 6.09-6.21 to USD 6.15-6.23, according to the Progress Software presentation.

Integration remains the counter-factor

Progress closed its USD 400 million Domo acquisition on September 22, 2026. Management expects Domo's steady-state revenue at USD 280 million-290 million, while the transaction lifted net leverage to 3.8 times at closing and pushed the full-year non-GAAP margin outlook to 38 percent from 39 percent.

That combination gives the stock two competing reference points: higher revenue guidance and an earnings beat on one side, and acquisition integration costs and added leverage on the other. The analyst consensus therefore points to a wide valuation gap, but the October 7 price still sits materially below its yearly high.