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

PTC (NASDAQ:PTC) issued its quarterly earnings results on Wednesday. The technology company reported $2.69 EPS for the quarter, beating analysts’ consensus estimates of $2.06 by $0.63, FiscalAI reports. PTC had a net margin of 41.81% and a return on equity of 26.07%. The business had revenue of $774.30 million for the quarter, compared to analysts’ expectations of $712.40 million. During the same quarter in the prior year, the firm posted $1.79 earnings per share. The business’s quarterly revenue was up 21.7% compared to the same quarter last year. 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 Stock Down 2.1%

PTC stock traded down $3.11 during midday trading on Friday, reaching $144.55. The stock had a trading volume of 161,310 shares, compared to its average volume of 1,186,903. The company has a fifty day moving average price of $146.29 and a two-hundred day moving average price of $163.60. PTC has a 12 month low of $130.89 and a 12 month high of $219.69. The company has a current ratio of 1.22, a quick ratio of 1.22 and a debt-to-equity ratio of 0.31. The company has a market capitalization of $17.20 billion, a P/E ratio of 13.82, a PEG ratio of 2.38 and a beta of 0.98.

Analysts Set New Price Targets

Several brokerages recently commented on PTC. Mizuho cut their target price on PTC from $180.00 to $160.00 and set a “neutral” rating on the stock in a research report on Monday, March 23rd. Stifel Nicolaus set a $180.00 price target on PTC in a research note on Thursday, February 5th. Rosenblatt Securities restated a “buy” rating and set a $190.00 price target on shares of PTC in a report on Tuesday. Weiss Ratings downgraded shares of PTC from a “hold (c)” rating to a “hold (c-)” rating in a research report on Wednesday. Finally, Robert W. Baird set a $198.00 price objective on shares of PTC in a research note on Thursday. Ten equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $176.54.

PTC News Roundup

Here are the key news stories impacting PTC this week:

• Positive Sentiment: Q2 beat on top and bottom line — PTC reported non‑GAAP EPS of $2.69 (vs. ~$2.06 consensus) and revenue of $774.3M, ahead of estimates; quarterly results showed ~22% revenue growth year‑over‑year and strong margins. Read More.
• Positive Sentiment: Raised FY26 guidance and large repurchase program — Management raised FY26 revenue and non‑GAAP EPS guidance (FY26: $2.58B–$2.82B; EPS: $6.65–$8.90) and signaled heavy buybacks (~$625M in Q2; $1.225B–$1.325B target for FY26 plus a new $2B authorization for FY27–FY28), which increases near‑term cash return to shareholders. Read More.
• Positive Sentiment: AI-driven product demand and ARR strength — Management highlighted AI-led product modernization driving stronger constant‑currency ARR growth (8.5% ex‑divestitures) and improved operating/free cash flow (~14% y/y), supporting sustainable subscription growth. Read More.
• Neutral Sentiment: Mixed guidance bands — Q3 and FY26 guidance are ranges that include below‑consensus and above‑consensus outcomes (Q3 EPS range 1.24–1.78; market will watch execution vs. midpoints). Investors should monitor guidance cadence and ARR trajectory. Read More.
• Negative Sentiment: Fund and insider selling pressure noted — recent 13F filings showed some institutional trimming (e.g., Robeco reduced PTC position) and public filings show insider sales activity, which could cap upside if sustained. Also, at least one large bank has an underweight on the name. Read More.

Insider Activity at PTC

In other news, Director Corinna Lathan sold 675 shares of the company’s stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $157.24, for a total transaction of $106,137.00. Following the transaction, the director directly owned 8,429 shares of the company’s stock, valued at $1,325,375.96. This represents a 7.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Staats Aaron C. Von sold 240 shares of the stock in a transaction 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 completion of the transaction, the executive vice president owned 22,221 shares in the company, valued at approximately $3,579,803.10. This represents a 1.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.29% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. DV Equities LLC acquired a new position in shares of PTC during the fourth quarter valued at about $29,000. Quarry LP raised its holdings in shares of PTC by 86.2% in the 3rd quarter. Quarry LP now owns 203 shares of the technology company’s stock worth $41,000 after acquiring an additional 94 shares during the last quarter. Geneos Wealth Management Inc. lifted its position in PTC by 34.4% in the 1st quarter. Geneos Wealth Management Inc. now owns 297 shares of the technology company’s stock valued at $46,000 after acquiring an additional 76 shares in the last quarter. Osterweis Capital Management Inc. acquired a new position in PTC during the 4th quarter valued at about $50,000. Finally, MUFG Securities EMEA plc acquired a new position in PTC during the 2nd quarter valued at about $61,000. Institutional investors and hedge funds own 95.14% of the company’s stock.

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.