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Progress SoftwarePRGS -2.65%79 Pretax Margin % is 11.38% as of May. 2026, which is 12% below its 10-year median of 13.00. GuruFocus rates PRGS with a GF Score™ of 79/100 and a GF Value™ of $78.84 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 2,832 Software companies, Progress Software ranks better than 70.48% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Progress Software Pretax Margin % Related Terms
Progress Software Pretax Margin % Historical Data
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The historical data trend for Progress Software's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
PRGS vs PICS, NN, APPN: Pretax Margin % Comparison
For the Software - Infrastructure subindustry, Progress Software's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Progress Software Pretax Margin % vs Software Industry
For the Software industry and Technology sector, Progress Software's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Progress Software's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Progress Software (PRGS) has a Pretax Margin % of 11.38% as of May. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Progress Software and its competitors. This is 12% below median its historical median of 13.00. According to the industry distribution chart, Progress Software ranks #836 out of 2832 companies in the Software industry, placing it in the top 29.5%.
Is Progress Software's Pretax Margin % too high?
Progress Software's current Pretax Margin % of 11.38% is 12% below median its 10-year median of 13.00. The Software industry median Pretax Margin % is 3.76. Progress Software's value of 11.38% is 202.7% above this industry median. Based on the distribution chart, Progress Software ranks #836 out of 2832 companies in the Software industry, which is above the industry midpoint. Overall, Progress Software has a GF Score™ of 79/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Progress Software's Pretax Margin % compare to PICS and NN?
According to the Software industry distribution chart, Progress Software ranks #836 out of 2832 companies for Pretax Margin %. This puts Progress Software in the upper half of its industry. The industry median Pretax Margin % is 3.76. Progress Software's value of 11.38% is 202.7% above this benchmark. While the company's 10-year median is 13.00 vs. the industry median of 3.76, Progress Software has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Software company?
The median Pretax Margin % among Software companies is 3.76, based on 2,832 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Progress Software's current Pretax Margin % of 11.38% is 202.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Progress Software and its competitors. For the Software industry, the median Pretax Margin % is 3.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Progress Software's current Pretax Margin % is 11.38%, which is 12% below median its own 10-year median of 13.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Progress Software stock overvalued right now?
Based on GuruFocus' analysis, Progress Software (PRGS) is currently considered Possible Value Trap. The stock's GF Value™ is $78.84, compared to a current price of $42.62 — trading 45.9% below its estimated fair value. The current Pretax Margin % is 11.38%, which is 12% below median its 10-year median of 13.00 and 202.7% above the Software industry median of 3.76. Progress Software's overall GF Score™ is 79/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Progress Software (PRGS), the current Pretax Margin % is 11.38% as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Progress Software (PRGS) Overvalued in 2026?
Based on GuruFocus' analysis, Progress Software stock appears to be undervalued.
The current stock price of $42.62 is trading 45.9% below its estimated GF Value™ of $78.84.
GuruFocus considers Progress Software to be Possible Value Trap.
Key valuation signals for PRGS:
Pretax Margin %: 11.38% (12% below median its 10-year median of 13.00)
GF Value™: $78.84 vs. price of $42.62 (45.9% below fair value)
Industry Position: 202.7% above the Software median (#836 of 2832)
No single metric tells the full story. See the PRGS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Progress Software Corp provides software products that enable customers to develop, deploy, and manage AI-powered applications and digital experiences. The Company operates across North America, Latin America, Europe, the Middle East and Africa (EMEA), and Asia Pacific through subsidiaries and distributors, generating a majority of its revenue from the United States. Its product portfolio includes Progress Agentic RAG, Automate MFT, Chef, Corticon, DataDirect, Developer Tools, Flowmon, Kemp LoadMaster, MarkLogic, MOVEit, OpenEdge, Semaphore, ShareFile, Sitefinity, and WhatsUp Gold, offering solutions for application development, data connectivity, DevOps automation, managed file transfer, network security, and digital experience. It generates maximum revenue from the United States.
79GF Score
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