Shares of Progress software (NASDAQ: PRGS) jumped on Wednesday after the technology developer announced solid fourth-quarter financial results and issued an optimistic forecast for the year ahead.
By the end of trading, Progress’s share price was up more than 10%.
Progress revenue rose 18% year over year to $253 million in the fourth quarter.
The software specialist’s operating profit rose 78% to $38.4 million, while operating margin rose 5 percentage points to 15%.
Better yet, Progress’ operating cash flow shot up 220% to $62.8 million.
CEO Yogesh Gupta said Progress’s results demonstrate the relevance of its artificial intelligence (AI)-focused offerings in “an AI-driven world for companies of all sizes.”
Overall, Progress’s adjusted earnings per share, excluding stock-based compensation and acquisition-related costs, rose 14% to $1.51. That was well above Wall Street estimates, which had called for adjusted earnings per share of $1.31.
Progress is expected for revenues of $986 million to $1 billion in fiscal 2026. The company also expects to generate full-year earnings per share of $1.74 to $1.91 and cash flow from operations of $263 million to $277 million.
“2025 was our strongest year ever for Progress as we continue to execute our overall long-term growth strategy to invest and innovate, acquire and integrate and drive customer success,” said Gupta.
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