Progress Software Q2 2026 Earnings Call: Complete Transcript

Progress Software (NASDAQ: PRGS ) reported second-quarter financial results on Tuesday.

The transcript from the company's second-quarter earnings call has been provided below.

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The full earnings call is available at Summary Progress Software reported Q2 2026 revenue of $253 million, a 7% increase year-over-year, with ARR of $868 million and an operating margin of 40%.

EPS was $1.62, exceeding expectations.

The company highlighted strong performance in its data platform products and infrastructure management.

Strategic initiatives include launching Chef Enterprise Management for Nvidia's DGX Spark and focusing on AI capabilities across its portfolio.

Progress Software raised its full-year guidance, expecting revenue between $990 million and just over $1 billion, with EPS between $6.09 and $6.21.

The company plans to reduce debt by approximately $220 million and repurchase $75 million in shares.

Operationally, the company improved collections, reducing day sales outstanding, and paid down $110 million in debt in the first half of the fiscal year.

Management remains optimistic about AI opportunities and the potential for disciplined M&A, with sellers adjusting expectations, and Progress Software's strong balance sheet allowing for strategic acquisitions.

Full Transcript OPERATOR Hello and welcome to Progress Software second quarter 2026 earnings conference call.

At this time, all participants are in a listen-only mode.

After the speaker's presentation, there will be a question and answer session.

To ask a question during the session, you will need to press Star one one on your telephone.

You would then hear an automated message advising your hand is raised.

To withdraw your question, please press Star one one again.

I would now like to hand the conference over to Michael Micciche.

Sir, you may begin.

Michael Micciche Thank you.

Good afternoon, everybody.

Thanks for joining us for Progress Software's second fiscal quarter 2026 financial results conference call.

With me tonight are Yogesh Gupta, our President and CEO, and Anthony Folger, our Chief Financial Officer.

Before we get started, let's go through the Safe Harbor statement.

During this call, we will discuss our outlook for future financial and operating performance, corporate strategies, product plans, cost initiatives, and other information that might be considered forward-looking.

Such forward-looking information represents Progress Software's outlook and guidance only as of today and is subject to risks and uncertainties, and our actual results may differ materially.

For a description of the factors that may affect our future results and operations, please refer to the risk factors in our SEC filings, particularly the risk factor section of our most recent Form 10-K and the latest 10-Q, which was filed in conjunction with this announcement evening.

Progress assumes no obligation to update forward-looking statements included in this call.

Additionally, please note that all the financial figures referenced in this call tonight are non-GAAP measures unless otherwise indicated.

You can find a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP figures in our earnings press release, which was issued after the market closed today.

This document contains additional information related to our financial results for the second quarter of fiscal 2026, and I recommend that you reference it for specific details.

We've also provided a slide presentation that contains supplemental data for our second quarter and provides additional highlights and financial metrics.

Both the earnings release and the supplemental presentation are available on the Investor Relations section of our website at investors.progress.com.

And of course, today's call is being recorded in its entirety and it should be available for replay shortly after we finish tonight on the Investor Relations section of our website.

So with that out of the way, Yogesh, I'll turn it over to you.