PTC (NASDAQ:PTC) Posts Earnings Results, Beats Expectations By $0.63 EPS

PTC (NASDAQ:PTC) issued its quarterly earnings data on Wednesday. The technology company reported $2.69 EPS for the quarter, topping analysts’ consensus estimates of $2.06 by $0.63, FiscalAI reports. The business had revenue of $774.30 million for the quarter, compared to analysts’ expectations of $712.40 million. PTC had a net margin of 28.86% and a return on equity of 24.63%. PTC updated its FY 2026 guidance to 6.650-8.900 EPS and its Q3 2026 guidance to 1.240-1.780 EPS.

Here are the key takeaways from PTC’s conference call:

• PTC reported a strong Q2 with constant-currency ARR up 8.5% (ex-Kepware/ThingWorx) and free cash flow +14% YoY, while returning capital via a $250M repurchase in Q2, a $375M ASR funded by the divestiture, ~ $250M planned in Q3 and a board-authorized $2 billion buyback program through FY2028.
• Management raised guidance, maintaining fiscal-2026 ARR growth ~7.5%–9.5% (ex-divestitures), guiding Q3 ARR growth ~8%–9% (net new ARR $40M–$55M), and increasing revenue guidance to $2.58B–$2.82B and non-GAAP EPS to $6.65–$8.90.
• AI is a core demand driver—PTC says AI is prompting customer modernization of product data foundations, highlighted a competitive displacement win with Windchill+, plans to nearly double AI releases in 2026, and emphasizes proprietary agents for Creo/Onshape that access CAD/3D data others cannot.
• The go-to-market transformation is gaining traction—management cites improved rep productivity, higher renewal rates, a larger, higher-quality pipeline across geographies/verticals, and an intentional build of deferred ARR expected to support a Q4 net-new ARR step-up and better 2027 visibility.
• Risks remain—management flagged macro uncertainty, the Kepware/ThingWorx divestiture did not qualify as discontinued ops (complicating comparability), and AI monetization is expected to grow over time with materially larger capture likely in 2027 rather than immediately.

PTC Price Performance

PTC stock traded down $0.79 during midday trading on Wednesday, reaching $136.76. The stock had a trading volume of 4,091,831 shares, compared to its average volume of 1,171,320. The company’s fifty day simple moving average is $146.41 and its 200 day simple moving average is $163.99. The company has a market cap of $16.27 billion, a price-to-earnings ratio of 19.96, a price-to-earnings-growth ratio of 2.40 and a beta of 0.98. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.31. PTC has a 52-week low of $130.89 and a 52-week high of $219.69.

Trending Headlines about PTC

Here are the key news stories impacting PTC this week:

• Positive Sentiment: Q2 earnings and revenue beat — PTC reported $2.69 EPS and $774.3M revenue, comfortably above consensus, signaling solid execution and margin strength. Article Title
• Positive Sentiment: Raised annual revenue outlook on steady software demand — Reuters notes management lifted its revenue forecast, reflecting durable ARR and software demand. Article Title
• Positive Sentiment: Large share repurchases and new authorization — PTC used ~ $625M for repurchases in Q2, targets ~$1.225–1.325B for FY’26 and authorized a new $2B buyback for FY’27–FY’28, supporting shareholder returns. Article Title
• Positive Sentiment: U.S. Army selects Windchill PLM — designation as the Army’s official ePDM/PLM solution is a strategic, enterprise-scale win that can drive long-term license, services and sustainment revenue. Article Title
• Positive Sentiment: Codebeamer commercial traction — Hamilton Medical selected Codebeamer ALM and will collaborate with PTC, supporting cross-sell of ALM/PLM capabilities in regulated industries. Article Title
• Neutral Sentiment: Mixed FY/Q3 guidance — PTC set FY26 EPS of $6.65–$8.90 and Q3 EPS of $1.24–$1.78; ranges are wide and overlap/straddle analyst expectations, leaving guidance interpretation ambiguous for near-term estimates. Article Title
• Negative Sentiment: Institutional repositioning and insider sales — data show large mutual fund reductions (e.g., T. Rowe, UBS AM) and multiple insider sales, which can add selling pressure despite the operational positives. Article Title

Insiders Place Their Bets

In other news, Director Corinna Lathan sold 675 shares of the business’s stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $157.24, for a total transaction of $106,137.00. Following the transaction, the director owned 8,429 shares of the company’s stock, valued at approximately $1,325,375.96. The trade was a 7.41% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Staats Aaron C. Von sold 240 shares of the business’s stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $161.10, for a total transaction of $38,664.00. Following the transaction, the executive vice president directly owned 22,221 shares in the company, valued at approximately $3,579,803.10. The trade was a 1.07% decrease in their position. The SEC filing for this sale provides additional information. 0.29% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of PTC. Voloridge Investment Management LLC boosted its position in shares of PTC by 856.8% during the 3rd quarter. Voloridge Investment Management LLC now owns 465,814 shares of the technology company’s stock valued at $94,570,000 after acquiring an additional 417,130 shares during the last quarter. Invesco Ltd. increased its position in shares of PTC by 26.8% during the 4th quarter. Invesco Ltd. now owns 1,710,141 shares of the technology company’s stock worth $297,924,000 after purchasing an additional 361,038 shares during the last quarter. State Street Corp increased its position in shares of PTC by 5.6% during the 4th quarter. State Street Corp now owns 5,905,645 shares of the technology company’s stock worth $1,028,822,000 after purchasing an additional 312,000 shares during the last quarter. Caisse de depot et placement du Quebec increased its position in shares of PTC by 298.6% during the 4th quarter. Caisse de depot et placement du Quebec now owns 357,297 shares of the technology company’s stock worth $62,245,000 after purchasing an additional 267,648 shares during the last quarter. Finally, Standard Investments LLC increased its position in shares of PTC by 14.3% during the 4th quarter. Standard Investments LLC now owns 1,812,500 shares of the technology company’s stock worth $315,756,000 after purchasing an additional 226,500 shares during the last quarter. Institutional investors and hedge funds own 95.14% of the company’s stock.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on PTC shares. KeyCorp dropped their price target on shares of PTC from $210.00 to $195.00 and set an “overweight” rating on the stock in a research note on Tuesday, March 17th. Royal Bank Of Canada dropped their price target on shares of PTC from $235.00 to $195.00 and set an “outperform” rating on the stock in a research note on Thursday, February 5th. Wall Street Zen upgraded PTC from a “hold” rating to a “buy” rating in a research note on Saturday, April 18th. Barclays assumed coverage on PTC in a research note on Tuesday, March 17th. They set an “overweight” rating and a $180.00 price objective for the company. Finally, Weiss Ratings lowered PTC from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, January 12th. Ten equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, PTC presently has a consensus rating of “Moderate Buy” and a consensus price target of $180.54.

PTC Company Profile

PTC Inc (NASDAQ: PTC) is a global technology company that develops software and services to help manufacturers design, operate, and service physical products. Founded in 1985 as Parametric Technology Corporation, PTC pioneered parametric, feature-based CAD with its Pro/ENGINEER product (now marketed as Creo) and has since expanded its portfolio to address product lifecycle management, Internet of Things (IoT), augmented reality (AR) and industrial connectivity.

Key product lines include Creo for 3D CAD; Windchill for product lifecycle management (PLM); ThingWorx, an IoT platform for connecting devices and building industrial applications; Vuforia, an AR platform for creating immersive service and training experiences; and Kepware, a suite for industrial connectivity and protocol translation.