Progress Software (PGR) AI Stock Analysis

Company Guidance

For the fourth quarter of 2026, Domo will contribute approximately 2 months of activity, with revenue expected to be between $297 million and $305 million and earnings per share between $1.24 and $1.33; for the full year 2026, revenue is expected to be between $1.044 billion and $1.052 billion, operating margin 38%, adjusted free cash flow between $275 million and $283 million, unlevered free cash flow between $330 million and $338 million, and earnings per share between $6.15 and $6.23, assuming a tax rate of 20% and approximately 42 million weighted shares outstanding. Domo’s steady-state revenue is expected to stabilize in the range of $280 million to $290 million, and once fully integrated by the end of FY '27, Domo is expected to annually add well over $100 million of EBITDA; for fiscal 2027, Domo will likely run slightly below 30% operating margin as the synergies ramp, Progress’ overall operating margin could be compressed 100 to 200 basis points, with a Progress margin in the range of 38% to 39% potentially looking more like 36% to 37%, and incremental interest expense is expected to be approximately $21 million.