Progress is executing an acquisition-led shift from a broad infrastructure-software portfolio toward a larger AI data and governance platform; the Domo acquisition, completed September 22, 2026, is intended to add the data-readiness layer behind that strategy.
| Metric | Q3 2026 | Comparison | Source |
|---|---|---|---|
| Revenue | $246M | Prior guide: $244M–$250M; published consensus: ~$247.6M | Summary Highlights |
| Non-GAAP diluted EPS | $1.69 | Prior guide: $1.53–$1.59 | Summary Highlights |
| GAAP diluted EPS | $0.55 | Prior guide: $0.35–$0.41 | Summary Q3 2026 Financial Results |
| Non-GAAP operating margin | 43% | Not previously guided | Summary Q3 2026 Financial Results |
| ARR | $873M | Up 1% year over year | Summary Highlights |
| NRR | 99% | Down from 100% in the prior disclosed trend | ARR Trend |
| FY2026 revenue outlook | $1.044B–$1.052B | Prior: $990M–$1.002B | Business Outlook |
| FY2026 non-GAAP EPS outlook | $6.15–$6.23 | Prior: $6.09–$6.21 | Business Outlook |
| Domo purchase price | $400M | All cash; $390M revolver draw | Domo Acquisition and Leverage Profile |
| Net leverage | ~3.8x at close; ~2.9x pro forma | 2.7x before the transaction | Domo Acquisition and Leverage Profile |
The quarter beat on earnings, but not because the underlying growth engine accelerated. Revenue landed inside the company’s own range and slightly below the published consensus of roughly $247.6 million, while non-GAAP EPS of $1.69 cleared the prior range by $0.10. The margin result was solid at 43%, but the more forward-looking indicators softened: ARR rose only 1% year over year and NRR was 99%. The filing states, “Revenues of $246M vs. prior guidance of $244M - $250M” and “EPS: $1.69, above high-end of prior guidance of $1.53-$1.59.”
The large guidance increase is mainly the Domo combination, not a sudden acceleration in the legacy business. FY2026 revenue guidance rose to $1.044 billion–$1.052 billion from $990 million–$1.002 billion, but Domo was excluded from the historical ARR trend and only closed near quarter-end. That makes the raised revenue outlook more of a transaction-consolidation effect than proof that Progress’s existing products have re-entered a high-growth phase. ARR was $873 million, up 1% year over year, and the filing reports “NRR: 99%.”
Domo advances the AI-platform story, but it also raises execution and balance-sheet demands. Progress paid $400 million in cash and drew $390 million on its revolver; leverage rose to roughly 3.8x at closing, although management presents a roughly 2.9x pro forma figure after including Domo’s EBITDA. Management expects Domo to depress FY2027 non-GAAP margin to 36%–37% before integration synergies restore it to 38%–39%, while adding about $21 million of fiscal 2027 interest expense. The filing says the transaction “Closed September 22, 2026” and lists a “$400M purchase price, all cash.” 〔0〕
The next proof point is whether Domo produces growth rather than just scale. Progress says more than 85% of Domo ARR is consumption-based and models a steady-state revenue base of $280 million–$290 million, but it also anticipates planned seat-based churn and an initial margin drag. Formal fiscal 2027 guidance is not yet available; the filing says, “Progress will provide formal fiscal 2027 guidance in January.” 〔1〕
Bottom line: This was an earnings beat and a raised revenue outlook, but the core recurring-growth data weakened while the Domo acquisition increased leverage and integration risk. The event is modestly positive because EPS outperformed, yet the more important strategic test has moved to proving that Domo can restart ARR growth without sacrificing Progress’s cash-generation profile.
Read the original 8-K on SEC EDGAR ↗