Progress Q3 2026 slides: EPS beats, Domo acquisition reshapes outlook

Progress Software Corporation reported its fiscal third quarter 2026 financial results on September 30, 2026. The company's earnings per share surpassed guidance, and it completed its $400 million acquisition of Domo. Shares rose 1.34% during regular trading but fell 2.18% in after-hours trading due to concerns about the integration outlook.

The stock remains within its 52-week range of $23.82 to $47.37. Progress's revenue of $246 million exceeded expectations, and non-GAAP earnings per share hit $1.69. Operating margin improved to 43%, a 300-basis-point increase from the previous quarter. Days sales outstanding decreased to 42 days. The acquisition of Domo, valued at $400 million, was executed by drawing $390 million on Progress's revolving credit facility.

Domo's ARR is consumption-based, marking a strategic shift for Progress. The acquisition reduced leverage to 2.9x pro forma EBITDA but increased net debt-to-EBITDA to 3.8x. Domo's revenue is expected to stabilize at $280 million to $290 million, and operating margins will compress to 36-37%. Progress's Total Growth Strategy includes investing in innovation, disciplined M&A, and customer success.

CEO Yogesh Gupta emphasized the acquisition's potential to connect data across the enterprise and deliver trusted AI insights.