| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 81 | 21.3x | 17.3x | Top tier | |
Growth | 67 | 6.4% | 7.1% | Top tier | |
Quality | 94 | 9.4% | 4.5% | Top tier | |
Safety | 48 | 3.6x | 2.6x | Around median | |
Capital Return | 68 | 0.03% | 0.06% | Top tier | |
Momentum | 86 | -11.9% | -1.6% | Top tier | |
Sentiment | 37 | 4 | 3 | Bottom tier |
The floor: what the company is worth if growth stopped today
72% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Progress Software Corporation, listed under the ticker PRGS on NASDAQ, sells software for managing and securing data, content, and infrastructure, developing applications, and automating processes. Its portfolio includes OpenEdge, DataDirect, MOVEit, LoadMaster, WhatsUp Gold, and DevTools, and it serves financial and healthcare institutions, energy and technology companies, and government entities. Most of its products are tied to data volume or infrastructure capacity, while the Domo business adds consumption-based pricing; expansion opportunities therefore depend on increased customer use of data and technology resources, alongside contract renewals.
Revenue in quarter 3 of fiscal year 2026, for the period ended 2026-08-31, was 246.0 million dollars, down 1.5% year over year, while net income was 22.8 million dollars and diluted earnings per share were 0.55 dollars. Gross margin reached 82.7% and operating margin reached 18.9%, compared with 81.0% and 17.6%, respectively, in quarter 3 of fiscal year 2025, whose results were filed on 2025-09-29. Operating cash flow was 88.0 million dollars in quarter 3 of fiscal year 2026, highlighting improved profitability and cash generation despite declining revenue.
Annual recurring revenue reached 873 million dollars in quarter 3 of fiscal year 2026, for the period ended 2026-08-31, with growth exceeding 1% in constant currency and on a comparable basis that includes acquired businesses, while net revenue retention was 99%. This quarter's results did not include the Domo business, whose data and AI platform assets were acquired on 2026-09-22 for an agreed price of 400 million dollars in cash. The transaction adds more than 2,400 enterprise customers, and the consumption model accounts for more than 85% of the Domo business's annual recurring revenue, while professional services represent approximately 10% of its revenue; this mix makes retaining consumption customers and reducing services activity central to the integration.
Q3 FY2026
When: Quarter 4 of fiscal year 2026
Meeting the guided revenue range of 297 million dollars to 305 million dollars
Maintaining net revenue retention at the 99% threshold
When: Fiscal year 2027
Achieving adjusted operating margin at the 36% threshold during Domo integration
The industry-multiple valuation is 57 dollars, within a range of 29 dollars to 108 dollars, and values earnings over the last 12 months through 2026-08-31 at a median multiple of 26.1 across 72 comparable companies. The median analyst price target is 53 dollars, within a range of 50 dollars to 55 dollars across two analysts, and is a low-confidence indicative estimate reflecting growth expectations; the no-growth valuation is 13 dollars and measures current after-tax operating profit remaining constant forever at a discount rate of 8.9%. The industry-multiple valuation and median analyst price target are close to each other and differ clearly from the no-growth valuation because the first prices earnings like those of peer companies and the second incorporates expansion expectations, while the third excludes growth entirely. Analyst targets tend to be optimistic by nature, while the cash flow model tends to be conservative by nature; successful Domo integration and revenue stabilization remain central to assessing whether growth expectations can be realized.
Figures in the text are as of 2026-10-04; the live price is shown at the top of the page.
Revenue in quarter 3 of fiscal year 2026, for the period ended 2026-08-31, was 246.0 million dollars, down 1.5% year over year. Meanwhile, gross margin reached 82.7% and operating margin reached 18.9%, compared with 81.0% and 17.6% in quarter 3 of fiscal year 2025, whose results were filed on 2025-09-29. Net income rose to 22.8 million dollars from 19.4 million dollars, alongside management's emphasis on cost control. The diluted share count also declined to 41.5 million shares from 43.7 million shares, supporting earnings attributable to each share.
On 2026-09-22, Progress completed the acquisition of the assets of Domo's data and AI platform business for an agreed price of 400 million dollars in cash, adding more than 2,400 enterprise customers. Domo combines data integration, analytics, and automation, complementing Progress's capabilities in semantic data management and retrieval-augmented generation. Management expects the business's annual revenue to stabilize between 280 million dollars and 290 million dollars and its contribution to exceed 100 million dollars annually in earnings before interest, taxes, depreciation, and amortization after integration is completed by the end of fiscal year 2027. Risks of losing seat-based customers and executing the integration remain, while cross-selling gains have not been included in the revenue assumption.
Automated analysis for informational purposes only — not investment advice.
Last 12 months to 2026-08-31
When: End of fiscal year 2027
Domo's annual contribution exceeding 100 million dollars in earnings before interest, taxes, depreciation, and amortization
Operating cash flow was 328.3 million dollars and free cash flow was 319.1 million dollars over the last 12 months through 2026-08-31, compared with share repurchases of 112.0 million dollars. However, debt was 1.2 billion dollars against cash and investments of 113.7 million dollars in quarter 3 of fiscal year 2026, for the period ended 2026-08-31. Management explained during the 2026-09-30 call that financing Domo required drawing 390 million dollars from the revolving credit facility, with approximately 21 million dollars in additional interest expense expected in fiscal year 2027. Cash flows therefore support repayment capacity, but their continuation and allocation between debt and repurchases remain important, particularly with collections expected to normalize after ShareFile's issues were resolved.
Progress ties most of its products to infrastructure capacity or data volume, and management says that increasing AI workloads raise the need for servers, infrastructure management, and security. The consumption model accounts for more than 85% of the Domo business's annual recurring revenue, while net revenue retention exceeds 100% among customers who started directly on this model, according to statements during the 2026-09-30 call. Meanwhile, management acknowledged that AI is putting pressure on some traditional analytics and the presentation experience, and that Domo's seat-based contracts are experiencing greater customer losses. The opportunity therefore depends on using Domo for data preparation, integration, and governance while retaining customers during the transition to consumption.