The company recorded adjusted earnings of $1.62 per share for the second quarter, surpassing analyst estimates of $1.49 per share. This marked a 15.7 percent increase compared to the same period last year.
The firm generated quarterly revenue of $253.47 million, which was above the analyst forecast of $242.74 million and represented a 6.8 percent rise from a year earlier.
In the second quarter, Annualized Recurring Revenue (ARR) reached $868 million, reflecting a 2 percent increase year-over-year on a constant currency basis. The operating margin was 18 percent, while the non-GAAP operating margin stood at 40 percent. Cash and cash equivalents were reported at $103 million at the end of the quarter.
For the third quarter of fiscal year 2026, the company provided profit guidance in the range of $1.53 to $1.59 per share, compared to analyst expectations of $1.45 per share. Sales guidance was set between $244.00 million and $250.00 million, against consensus estimates of $249.97 million.
Progress Software also shared its fiscal year 2026 profit guidance, projecting earnings between $6.09 and $6.21 per share, compared to analyst expectations of $5.98 per share. Sales guidance for the fiscal year was set between $990.00 million and $1.00 billion, versus consensus estimates of $994.10 million.
Yogesh Gupta, CEO of Progress Software, stated, “Q2 was another strong quarter for Progress, highlighted by broad-based demand across our portfolio and driven meaningfully by continued momentum in our AI-powered offerings.”
