Progress Software PRGS unveiled AI-powered upgrades to its Sitefinity content management platform, aimed at accelerating content creation and enhancing digital customer engagement.

The new Sitefinity 15.3 release integrates embedded Generative AI (Gen AI) services, enabling marketers to summarize content, personalize messages, and generate tags within the platform. PRGS features AI-enhanced media search, allowing users to find visuals using natural language, and built-in Azure AI translation for efficient multilingual content management.

Sitefinity now offers in-line AI-based content optimization and advanced BI system integration, empowering organizations to streamline workflows, refine digital assets, and apply custom AI models for deeper insights and improved marketing performance.

PRGS’ Strong Portfolio Boosts Prospects

PRGS shares have plunged 11.8% year to date, outperforming the broader Zacks Computer & Technology sector’s decline of 14.5%. However, since reporting first-quarter fiscal 2025 earnings results on March 31, Progress Software shares jumped 11.5%.

Progress Software Corporation Price and Consensus

Progress Software Corporation price-consensus-chart | Progress Software Corporation Quote

In the fiscal first quarter, annualized recurring revenues (ARR) of $836 million surged 48% year over year on a constant currency basis. Growth was driven by strong performance in ShareFile, alongside consistent contributions from core products, including OpenEdge, Sitefinity, DevTools, Kemp LoadMaster, and WhatsUp Gold. 

Revenues for the reported quarter totaled $238 million, landing at the high end of guidance and up 29% year over year.

AI remains a core strategic focus. Progress Software is embedding AI across its product portfolio to streamline workflows, automate experiences, and enhance customer value. Early this month, Progress Software announced purpose-built AI in ShareFile to enhance efficiency and strengthen data security, driving existing document-centric workflows.

AI Arms Race: PRGS Faces Stiff Competition

Progress Software’s AI push is aligned with broader industry trends, as peers aggressively expand their agentic AI ecosystems.

PRGS has also outperformed its industry peers that are accelerating AI adoption, including Oracle ORCL and Adobe ADBE. Year to date, shares of Oracle and Adobe have plunged 19.5% and 21.3%, respectively.

Oracle recently deepened its strategic collaboration with NVIDIA to accelerate agentic AI deployment. Through native integration of NVIDIA AI Enterprise software and NIM microservices into Oracle Cloud Infrastructure (“OCI”), users can access over 160 AI tools and deploy advanced reasoning models, such as Llama Nemotron, directly from the OCI Console. This initiative positions Oracle as a full-stack AI provider, offering flexible, scalable infrastructure for enterprise-grade AI workloads.

Adobe, in partnership with Microsoft MSFT, is enhancing AI accessibility through Microsoft 365 Copilot. At Adobe Summit 2025, Adobe launched the private preview of Adobe Marketing Agent and Adobe Express Agent, which embed AI-driven creative and analytics tools within Microsoft Teams, PowerPoint, and Word. These agents enable marketers to refine target audiences using Adobe Experience Platform, generate high-impact visual content through Adobe Express, and automate performance reporting.

While Progress Software is smaller in scale, its AI integration strategy aligns with these industry leaders, focusing on improving user experiences, driving automation, and simplifying content workflows.

PRGS Offers Positive Guidance for Q2 2025

For the second quarter of fiscal 2025, PRGS projects revenues between $235 million and $241 million. The Zacks Consensus Estimate for revenues is pegged at $237.85 million, suggesting a 35.85% increase from the prior-year quarter’s actual.

Non-GAAP earnings per share are expected to be between $1.28 and $1.34. The consensus mark for earnings is pegged at $1.31 per share. The consensus estimate indicates year-over-year growth of 20.18%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

For fiscal 2025, PRGS projects revenues between $958 million and $970 million. The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $965 million, suggesting a 28.08% increase from the prior-year quarter’s actual.

Non-GAAP earnings per share are expected to be between $5.25 and $5.37. The Zacks Consensus Estimate for earnings is pegged at $5.3 per share. The estimate indicates a 7.51% year-over-year increase.

Zacks Rank

PRGS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


 

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