Progress Software Q3 2026 slides: EPS beats, Domo acquisition detailed

Progress Software (PRGS) reported its third-quarter 2026 financial results on September 30, 2026. The company surpassed earnings per share expectations with $1.69, while maintaining an impressive 43% operating margin. Investors initially reacted cautiously to the Domo acquisition, causing shares to decline by 2.18% after hours. Progress's long-term growth strategy, centered around AI through its Trusted AI Foundation, and disciplined approach to capital allocation were highlighted.

The company's revenue was $246 million, with non-GAAP EPS exceeding expectations by 11.18%. Operating margins improved by 300 basis points year-over-year, and ARR grew to $873 million with a steady NRR of 99%. The Domo acquisition closed on September 22, 2026, at a price of $400 million, representing attractive valuations. Despite the integration's temporary impact on margins, Progress expects to recoup in fiscal 2027.