PTC (NASDAQ:PTC) Releases Earnings Results, Beats Estimates By $0.63 EPS

Key Points

• PTC reported Q2 EPS of $2.69, beating consensus by $0.63 and revenue of $774.3M, and raised FY2026 non‑GAAP EPS guidance to $6.65–$8.90 with Q3 guidance of $1.24–$1.78.
• The company showed strong ARR and cash generation—constant‑currency ARR up 8.5% (ex‑Kepware/ThingWorx) and free cash flow +14% YoY—and authorized an incremental $2 billion buyback while executing substantial repurchases this quarter.
• Management says AI is a core demand driver (competitive wins like Windchill+, plans to nearly double AI releases in 2026), but warned AI monetization and macro uncertainty may limit near‑term capture with larger gains expected in 2027.

PTC (NASDAQ:PTC - Get Free Report) issued its earnings results on Wednesday. The technology company reported $2.69 earnings per share for the quarter, topping analysts' consensus estimates of $2.06 by $0.63, FiscalAI reports. PTC had a return on equity of 24.63% and a net margin of 28.86%.The company had revenue of $774.30 million for the quarter, compared to analyst estimates of $712.40 million. 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

NASDAQ:PTC traded down $0.79 during trading hours 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 has a debt-to-equity ratio of 0.31, a quick ratio of 1.22 and a current ratio of 1.22. PTC has a 52 week low of $130.89 and a 52 week high of $219.69. The company has a 50 day moving average price of $146.69 and a two-hundred day moving average price of $164.45. The stock has a market capitalization of $16.27 billion, a PE ratio of 19.96, a PEG ratio of 2.40 and a beta of 0.98.

Insider Buying and Selling

In other PTC news, EVP Staats Aaron C. Von sold 240 shares of PTC stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $161.10, for a total value of $38,664.00. Following the sale, the executive vice president owned 22,221 shares of the company's stock, valued at $3,579,803.10. The trade was a 1.07% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Corinna Lathan sold 675 shares of PTC stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $157.24, for a total value of $106,137.00. Following the completion of the sale, the director directly owned 8,429 shares in the company, valued at approximately $1,325,375.96. The trade was a 7.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.29% of the company's stock.

Institutional Trading of PTC

A number of large investors have recently added to or reduced their stakes in PTC. State Street Corp boosted its holdings in shares of PTC by 5.6% in 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 period. Price T Rowe Associates Inc. MD boosted its holdings in shares of PTC by 1.4% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 3,025,046 shares of the technology company's stock worth $526,994,000 after purchasing an additional 41,240 shares during the period. Standard Investments LLC boosted its holdings in shares of PTC by 14.3% in 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 period. Invesco Ltd. boosted its holdings in shares of PTC by 26.8% in 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 period. Finally, Northern Trust Corp boosted its holdings in shares of PTC by 2.6% in the 3rd quarter. Northern Trust Corp now owns 1,379,890 shares of the technology company's stock worth $280,145,000 after purchasing an additional 34,663 shares during the period. Institutional investors own 95.14% of the company's stock.

Trending Headlines about PTC

Here are the key news stories impacting PTC this week:

• Positive Sentiment: Strong Q2 results: PTC reported Q2 FY'26 EPS of $2.69 vs. consensus $2.06 and revenue of $774.3M vs. $712.4M expected — a clear beat that signals healthy revenue and margin performance. PR Newswire: Q2 Results
• Positive Sentiment: Profitability & cash flow: Management reported ~14% operating and free cash flow growth, 28.9% net margin and 24.6% ROE — metrics that support valuation and buyback activity. PR Newswire: Q2 Results
• Positive Sentiment: Large buyback program: PTC used ~ $625M for repurchases in Q2, is targeting $1.225B–$1.325B for FY'26 and approved a new $2B repurchase authorization for FY'27–'28 — supports EPS accretion and shareholder returns. PR Newswire: Q2 Results / Buybacks
• Positive Sentiment: Enterprise contract win: The U.S. Army designated PTC’s Windchill PLM as its official enterprise PDM/PLM solution — a strategic, high‑visibility win that can drive multi‑year revenue and credibility in government/defense. PR Newswire: Windchill / U.S. Army
• Positive Sentiment: Customer expansion: Hamilton Medical selected PTC’s Codebeamer to replace legacy ALM systems and expand collaboration with Windchill — a multi‑year commercial adoption that strengthens vertical market momentum. PR Newswire: Codebeamer / Hamilton Medical
• Positive Sentiment: Analyst backing: Rosenblatt reaffirmed a "buy" with a $190 price target, providing an upside catalyst if sentiment improves. Benzinga: Rosenblatt Rating
• Neutral Sentiment: Underlying momentum and expectations: Previews and analyst notes (Zacks, media previews) emphasized double‑digit revenue and EPS growth expectations, strong ARR momentum and expanding AI capabilities — supportive but forward‑looking. Zacks: Q2 Preview
• Neutral Sentiment: Local subsidiary housekeeping: PTC India Financial Services reported a clean audit and board clearance of accounts — routine corporate housekeeping with limited market impact. TipRanks: PTC India Audit

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on PTC shares. Wall Street Zen raised PTC from a "hold" rating to a "buy" rating in a research report on Saturday, April 18th. Stifel Nicolaus set a $180.00 price objective on PTC in a research report on Thursday, February 5th. KeyCorp lowered their price objective on PTC from $210.00 to $195.00 and set an "overweight" rating on the stock in a research report on Tuesday, March 17th. Mizuho lowered their price objective on PTC from $180.00 to $160.00 and set a "neutral" rating on the stock in a research report on Monday, March 23rd. Finally, Oppenheimer lowered their price objective on PTC from $240.00 to $200.00 and set an "outperform" rating on the stock in a research report on Wednesday, January 28th. Ten 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 MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $180.54.

About PTC

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.

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