Progress Software Corporation (Nasdaq: PRGS) announced its financial results for the fiscal third quarter ended August 31, 2026, in a Form 8-K filing. The company reported total revenue of $246.0 million for the quarter, which represents a 2% decrease year-over-year on both an actual and constant currency basis.
Despite the revenue decline, the company reported strong profitability metrics. Diluted earnings per share (EPS) were $0.55, a 25% increase compared to the same period in the prior year. Non-GAAP diluted EPS was reported at $1.69, an increase of 13% year-over-year. The company reported a GAAP operating margin of 19% and a non-GAAP operating margin of 43%.
Progress also highlighted its Annualized Recurring Revenue (ARR), which stood at $873 million, increasing 1% year-over-year on a constant currency basis. The company reported cash and cash equivalents of $113.7 million at the end of the quarter. Additionally, Days Sales Outstanding (DSO) improved to 42 days from 55 days in the prior year.
In terms of guidance for the fiscal year ending November 30, 2026, Progress expects revenue between $1.044 billion and $1.052 billion. The company projects diluted EPS between $1.18 and $1.28 on a GAAP basis and between $6.15 and $6.23 on a non-GAAP basis. For the fourth quarter of 2026, the company expects revenue of $297 million to $305 million and non-GAAP diluted EPS of $1.24 to $1.33.
