Shares of Progress Software (PRGS +10.91%) jumped on Wednesday after the tech developer announced solid fourth-quarter financial results and issued an upbeat forecast for the year ahead.
By the close of trading, Progress' stock price was up more than 10%.
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AI-driven growth in sales and profits
Progress' revenue climbed 18% year over year to $253 million in the fourth quarter.
The software specialist's operating income surged 78% to $38.4 million, as its operating margin increased by 5 percentage points to 15%.
Better still, Progress' operating cash flow rocketed 220% higher to $62.8 million.
NASDAQ: PRGS
Key Data Points
CEO Yogesh Gupta said Progress' results demonstrate the relevance of its artificial intelligence (AI)-focused offerings in "an AI-driven world for businesses of all sizes."
All told, Progress' adjusted earnings per share, which exclude stock-based compensation and acquisition-related expenses, rose 14% to $1.51. That was well above Wall Street's estimates, which had called for adjusted per-share earnings of $1.31.
Management sees more growth ahead
Progress guided for revenue of $986 million to $1 billion in fiscal 2026. The company also expects to generate full-year earnings per share of $1.74 to $1.91 and cash from operations of $263 million to $277 million.
"2025 was our strongest year ever for Progress as we continue to execute on our long-term total growth strategy to invest and innovate, acquire and integrate, and drive customer success," Gupta said.
