Progress Software (PRGS) Slashes 13% After Earnings Performance

Progress Software Corporation (NASDAQ:PRGS) is one of 10 Stocks that Fell Off the Cliff.

Progress Software snapped a three-day winning streak on Tuesday, shedding 13 percent to close at $55.52 apiece, as investors may have already priced in its earnings performance for the second quarter of the year following earlier growth indications.

In the second quarter ending May 31, 2025, Progress Software Corporation (NASDAQ:PRGS) firmed up its strong earnings performance, booking a 5-percent increase in its net income at $17 million versus the $16 million registered in the same period last year.

Revenues increased by 36 percent to $237 million from $175 million year-on-year, resulting in annualized recurring revenue (ARR) of $838 million or 46 percent year-over-year growth.

In a separate statement, Progress Software Corporation (NASDAQ:PRGS) also announced its acquisition of Nuclia, an innovator in agentic Retrieval-Augmented Generation AI solutions.

Progress Software (PRGS) Slashes 13% After Earnings Performance

A software engineer working in front of a computer, surrounded by code.

Nuclia provides unique, easy-to-use agentic RAG-as-a-service technology enabling organizations to automatically leverage their own proprietary business information to retrieve verifiable, accurate answers using GenAI.

While we acknowledge the potential of PRGS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.