Will Progress Software’s (PRGS) AI Push on AWS Redefine Its Competitive Edge in Enterprise Solutions?

• In recent days, Progress Software announced the launch of its Agentic Retrieval-Augmented Generation (RAG) platform as a SaaS solution on AWS Marketplace, alongside unveiling enterprise-grade RAG AI capabilities for the Sitefinity content management system. These advancements make no-code, multilingual AI-powered insights and hyper-personalized content experiences more accessible for organizations operating within AWS and using Sitefinity.
• By offering the Agentic RAG platform directly within AWS Marketplace, Progress Software positions itself to capture enterprise demand for trustworthy generative AI tools that streamline decision-making and content delivery at scale.
• We'll examine how the AWS Marketplace launch of Agentic RAG strengthens Progress Software's investment narrative around AI-powered software innovation and accessibility.

Find companies with promising cash flow potential yet trading below their fair value.

Progress Software Investment Narrative Recap

To be a shareholder in Progress Software, you need to believe that the company’s aggressive expansion into AI-powered SaaS will meaningfully accelerate its operational efficiency and profit growth, overcoming the margin pressures and execution risks of transitioning to the cloud. The recent debut of Agentic RAG in AWS Marketplace could energize short-term momentum in enterprise AI adoption, though it is not expected to resolve the biggest risk: cost pressures and execution challenges tied to rapid SaaS expansion.

The early access launch of Progress Agentic RAG for Sitefinity stands out, as it directly supports one of Progress Software’s key growth catalysts, the push to integrate advanced AI into its core platforms to deliver real-time, hyper-personalized content. This release meaningfully aligns with the ongoing catalyst of boosting recurring revenue and sustaining product innovation in the shift toward SaaS.

Yet, it is important for investors to remember that, in contrast, the greatest short-term threat centers on whether Progress can sufficiently control cloud infrastructure costs and...

Read the full narrative on Progress Software (it's free!)

Progress Software's narrative projects $1.0 billion in revenue and $138.9 million in earnings by 2028. This requires 5.5% yearly revenue growth and an $81.3 million earnings increase from current earnings of $57.6 million.

Uncover how Progress Software's forecasts yield a $70.00 fair value, a 77% upside to its current price.

Exploring Other Perspectives

With only two fair value estimates from the Simply Wall St Community, ranging from US$70 to US$91.43, opinion on Progress Software’s worth is unusually tight. This is particularly important as the latest AI SaaS rollout adds a possible growth catalyst that may reshape expectations, explore these different viewpoints to see how others interpret the company’s prospects.

Explore 2 other fair value estimates on Progress Software - why the stock might be worth over 2x more than the current price!

Build Your Own Progress Software Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Progress Software research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Progress Software research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Progress Software's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.