Software development benefits from agile methodologies by promoting iterative progress, flexibility, and collaboration. Agile encourages teams to work in short iterations, allowing for rapid feedback and continuous improvement throughout the development process. This approach facilitates better alignment with customer needs, as regular check-ins ensure that the product evolves according to user feedback. Further, agile frameworks like Scrum and Kanban enhance team collaboration and transparency, leading to higher quality outputs and faster delivery timelines compared to traditional methods.