Progress Software Corporation (PGRS) stock is booming during Tuesday’s trading session following a better-than-expected earnings report. The AI firm reported strong annual recurring revenue and net retention rate, causing shares to jump. The company posted first-quarter fiscal 2025 adjusted earnings per share (EPS) of $1.31, with revenue rising 29% year-over-year to $238.0 million. These numbers beat earnings and revenue estimates from experts, attracting plenty of attention from investors. Shares in the stock went up as much as 10.5% on Tuesday.
CEO Yogesh Gupta said the higher sales were “again driven by our product portfolio across the board, with our data platform and infrastructure management products having a particularly solid quarter.” The gains are very welcome, especially as the stock remains down 13% year-to-date after a rough start. PGRS stock hit an all-time high in late November 2024 but has fallen since then. On the flip side, the stock could climb a bit further thanks to revised forecasts from Progress Software for 2025.
Indeed, the company expects full-year adjusted EPS to be between $5.25 and $5.37, up from its earlier estimate of $5.00 to $5.12. Wall Street analysts are in line with these predictions, which adds more fuel to the stock’s potential rise. Currently, PRGS stock is trading in the middle of its 52-week range and below its 200-day simple moving average. That could be set to change for the better in the days after this earnings report.
Also Read: Tesla Stock: April 2025 Price Prediction (TSLA)
In the past 12 months, Progress Software (PGRS) stock is up 6%. That trend is expected to continue over the next year, per CNN analysts. Out of 7 analysts surveyed, 71% suggest to buy, with 0 suggesting to cash in on PGRS stock. The shares also have a median price forecast of $75.00, reflecting a 32.18% ROI from current prices. Even more bullish is the highest forecast of $83.00, a 46.28% climb from current prices.
All in all, while other AI stocks may be more favorable due to their name, Progress Software shares show plenty of potential. At a lower price than, say, Nvidia, PGRS may be a cheaper but still profitable AI stock to add to your portfolio this month.