11:17 AM EDT, 09/30/2025 (MT Newswires) -- Progress Software ( PRGS ) reported "solid" fiscal Q3 results and raised its full-year guidance for the second quarter in a row, reflecting better deal flow across its product portfolio and "stable" margin growth, Wedbush Securities said in a note Tuesday.

Analysts, including Daniel Ives, said that the company maintained a 100% net retention rate, consistent with the previous quarter, meaning existing customers are continuing to renew and expand their usage. This is supported by Progress' continued integration of artificial intelligence technologies, such as agentic retrieval-augmented generation, aimed at helping customers extract more value from their data.

"We continue to believe [Progress Software ( PRGS )] is an underappreciated 3rd derivative AI name as the company integrates AI across its portfolio following the Nuclia acquisition while driving cost efficiencies across operations to improve its margins and cash flow overtime," the analysts added.

Looking ahead, Progress raised its full-year fiscal 2025 guidance again. Revenue for the year is now expected to be in the range of $975 million to $981 million, and adjusted earnings per share are projected to be between $5.50 and $5.56. The company remains focused on balancing disciplined spending with targeted investments in AI to support productivity gains, the analysts noted.

Wedbush maintains its outperform rating and $75 price target on the stock.

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