Shares of Progress Software rose sharply Wednesday after the software technology company reported strong quarterly earnings and a better-than-expected outlook for 2026. ...

Progress Software beats quarterly earnings estimates and forecasts stronger-than-expected earnings in 2026. ...

With the stock markets reeling somewhat as the AI trade shows signs of weakness, it's a great time for investors to focus on rotating our portfolios to value stocks. Tech and high multiples don't always have to coincide. InWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seek ...

Core Viewpoint - Progress Software's stock has dropped 36% in 2025 despite consistently beating expectations and raising guidance, raising questions about whether the stock is undervalued [2] Company Overview - Progress Software, based in Burlington, Massachusetts, has a growth strategy focused on acquisitions, primarily targeting small database and business software companies [3] - The company employs 3,000 people and serves 86,000 customers, generating approximately $250 million in revenue in the third quarter, with an average revenue per customer of $3,000 [4] Legal Challenges - A significant uncertainty for Progress's future is a lawsuit stemming from a breach in its MOVEit file transfer app, potentially exposing the personal data of 95.8 million individuals across 2,773 organizations [5] - The financial liability from the legal proceedings could range from $30 million to over $500 million, depending on the outcome [6] Bull Case - The bullish perspective on Progress Software is supported by its high margins, low valuation (8x earnings), and strong recurring revenue growth (47%) [7] - Successful integration of the ShareFile acquisition and plans to reduce debt by $160 million this year could improve operations [8] - The company's AI capabilities are expected to enhance pricing power and customer acquisition, potentially leading to faster growth [8] Customer Value Proposition - Progress Software provides AI-driven solutions to help small businesses improve productivity and customer satisfaction, boasting a satisfaction rate of 93% to 94% [10] - The company enables clients to utilize generative AI for marketing and operational efficiencies, allowing faster response times and improved service delivery [12] Bear Case - Approximately 12% of Progress shares are sold short, indicating bearish sentiment among investors [15] - High debt levels, totaling over $1.9 billion, and risks associated with acquisitions could negatively impact earnings [16] - Weak organic growth and competitive challenges in various product categories raise concerns about the company's ability to sustain revenue growth [16] - Questions regarding the quality of earnings have emerged, particularly with a decline in GAAP operating margins from 25% in Q3 2024 to 18% in Q3 2025 [16]

Core Insights - Rain Enhancement Technologies Holdco, Inc. (RET) has appointed two strategic advisors, Chris Monroe and Paul Dacier, to enhance its leadership capabilities in quantum sciences and corporate governance as it advances its Weather Enhancement Technology Array (WETA) platform [1][5][8] Company Update - RET is progressing towards the deployment of 10 WETA systems, which are currently in the final manufacturing phases for delivery to the United States [2] - The company's ionization rainfall generation technology has shown the potential to increase rainfall by approximately 15-18% in randomized third-party trials [2] Strategic Advisor Contributions - Chris Monroe, a pioneer in quantum physics and co-founder of IonQ, brings expertise in quantum computing and atmospheric sciences, which aligns with RET's ionization approach [3] - Paul Dacier, serving as Chief Legal Officer of IonQ and Chairman of AerCap Holdings, contributes significant corporate governance and legal expertise, enhancing RET's public company operations [4][5] Technology and Market Impact - RET's ionization technology addresses global water scarcity, with nearly two-thirds of the world's population facing water shortages for at least one month annually, and demand expected to exceed supply by 40% by 2030 [8] - The technology is positioned for significant impact across agriculture, municipal water supply, and industrial applications worldwide [7]

Core Insights - BTQ Technologies Corp. has seen a rise in stock price following the announcement that co-founders Sean Hackett and Zach Belateche are joining full-time to enhance the deployment of post-quantum cryptography solutions [1][6] - The company has begun trading its common shares on the Nasdaq Global Market under the symbol BTQ, which increases liquidity and investor access after the delisting from OTCQX [2] Technology and Product Development - The company’s CASH (Cryptographically Agile Secure Hardware) technology is designed for in-memory processing, enabling cryptographic operations directly where data resides, achieving approximately one million digital signatures per second and up to five times faster AES encryption [3] - BTQ is integrating CASH into its Quantum Compute in Memory (QCIM) platform, providing flexible options such as silicon IP, co-processors, or chiplets, facilitating a smooth transition to standards like NIST FIPS 203–205 and CNSA 2.0 without requiring system redesigns [4] Strategic Initiatives - BTQ is advancing its crypto-secure finance infrastructure through initiatives like the Quantum Secure Stablecoin Network and PQC banking, which aim to combine regulatory compliance with cryptographic agility in financial systems [5] - The recruitment of Hackett and Belateche is expected to enhance operational efficiency, with Hackett focusing on silicon products and Belateche on hardware security, emphasizing the importance of democratizing access to next-generation cryptography in the face of quantum and AI threats [6]

Stock Performance - Progress Software shares experienced a downturn despite exceeding second-quarter estimates [1]

Group 1: Earnings Performance - Accenture reported quarterly earnings of $2.82 per share, missing the Zacks Consensus Estimate of $2.84 per share, but showing an increase from $2.77 per share a year ago, representing an earnings surprise of -0.70% [1] - The company posted revenues of $16.66 billion for the quarter ended February 2025, surpassing the Zacks Consensus Estimate by 0.50%, compared to year-ago revenues of $15.8 billion [2] - Over the last four quarters, Accenture has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Accenture shares have declined approximately 7.8% since the beginning of the year, while the S&P 500 has seen a decline of -3.5% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $3.27 on revenues of $17.18 billion, and for the current fiscal year, it is $12.69 on revenues of $68.39 billion [7] Group 3: Industry Context - The Computers - IT Services industry, to which Accenture belongs, is currently in the top 33% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5] - The current estimate revisions trend for Accenture is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the shares are expected to perform in line with the market in the near future [6]