11:03 AM EDT, 07/01/2025 (MT Newswires) -- Progress Software ( PRGS ) is ramping up its artificial intelligence strategy through accretive acquisitions while driving cost efficiencies across its operations, Wedbush said in a note Tuesday.

The company "continues to invest strategically into agentic and AI capabilities in its own products while integrating AI into operational workflows to generate greater efficiencies and improved cost management initiatives," according to the note. Wedbush said the company's acquisition of Nuclia, an agentic RAG technology provider, will improve its portfolio.

Citing the company's fiscal Q2 earnings performance, Wedbush said the company is seeing retention rates remaining at 100%+ pointing to further resilience with its software as a service platform.

On Monday, Progress Software ( PRGS ) reported Q2 earnings above expectations and a slight topline miss. The company raised its 2025 guidance to EPS of $5.28 to $5.40 on revenue of $962 million to $974 million. Analysts expect EPS of $5.29 on revenue of $963.5 million.

Wedbush maintained its outperform rating on Progress Software ( PRGS ), with a price target of $75.

Shares of the company were down more than 10% in recent trading.

Price: 57.14, Change: -6.70, Percent Change: -10.49