Progress Software beat the cited non-GAAP earnings-per-share estimate by $0.17 in fiscal Q3 2026, but revenue came in about $0.71 million below the cited consensus. The mixed result was reported on September 30, 2026, for the quarter ended August 31.
Did Progress Software beat earnings estimates?
Yes, on non-GAAP diluted earnings per share (EPS): Progress reported $1.69, compared with Investing.com’s estimate of $1.52, a $0.17 beat. Revenue missed that provider’s estimate: the company reported $246.005 million, versus Investing.com’s $246.72 million consensus, a shortfall of about $0.715 million. Investing.com rounded actual revenue to $246.01 million in its comparison. These consensus figures are Investing.com’s, not estimates issued by Progress.
That makes the headline a mixed result rather than an across-the-board beat: EPS exceeded the cited estimate, while revenue fell short. The consensus comparison was published by Investing.com.
What Progress reported for fiscal Q3 2026
Progress Software Corporation (Nasdaq: PRGS) announced results on September 30, 2026, for its fiscal third quarter ended August 31. The company’s SEC-filed earnings release reports these figures:
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| Measure | Fiscal Q3 2026 | Comparison |
|---|---|---|
| Revenue | $246.005 million | Down 2% year over year from $249.795 million in fiscal Q3 2025 |
| GAAP diluted EPS | $0.55 | Up from $0.44 in the prior-year quarter |
| Non-GAAP diluted EPS | $1.69 | Up from $1.50 in the prior-year quarter |
| Annualized recurring revenue (ARR) | $873 million | Up 1% year over year on a constant-currency basis |
| Operating margin | 19% GAAP; 43% non-GAAP | Fiscal Q3 2026 |
| Cash and cash equivalents | $113.7 million | At quarter end |
Why GAAP and non-GAAP EPS differ
The $1.69 figure behind the estimate beat is non-GAAP diluted EPS. Progress also reported GAAP diluted EPS of $0.55; the two measures are not interchangeable. The company explains its non-GAAP methodology and provides reconciliations in its earnings release, which cautions that non-GAAP measures are not in accordance with, or a substitute for, GAAP and should be considered alongside GAAP results.
What the results say about the quarter
Revenue declined 2% year over year on both an actual and constant-currency basis, while ARR rose 1% on a constant-currency basis. Those measures point in different directions: reported revenue was lower than a year earlier, whereas recurring revenue increased modestly after adjusting for currency effects.
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Progress CFO Anthony Folger characterized execution as strong, citing year-over-year growth in ARR and adjusted free cash flow of more than 1% and 17%, respectively, and a 43% non-GAAP operating margin. That is management’s assessment of the quarter, not an independent conclusion.
How Progress changed its FY2026 outlook
Following the quarter, Progress raised its fiscal 2026 outlook. The updated ranges are forecasts for the full year, not results already achieved:
- Revenue: $1.044 billion to $1.052 billion.
- Non-GAAP diluted EPS: $6.15 to $6.23.
The company also provided separate GAAP and non-GAAP EPS outlooks in its release; the range above is specifically the non-GAAP forecast.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What this comparison does—and does not—establish
The $0.17 beat and approximately $0.71 million revenue miss depend on the Investing.com consensus cited above; estimates can vary across providers. The company’s release establishes Progress’s reported results and updated outlook, but the estimate comparison alone does not establish why the quarter’s results occurred or how investors reacted. Progress also said the acquisition of Domo’s AI and Data Platform business had closed; the available release does not establish that the acquisition caused these quarterly results.
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Progress’s investor-relations notice, “Progress Software Reports Fiscal Third Quarter 2026 Financial Results,” confirms the fiscal period and release date.
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