PTC (NASDAQ:PTC) Shares Gap Up on Better-Than-Expected Earnings

PTC Inc. (NASDAQ:PTC) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $136.76, but opened at $153.98. PTC shares last traded at $147.5050, with a volume of 696,691 shares traded.

The technology company reported $2.69 earnings per share for the quarter, topping the consensus estimate of $2.06 by $0.63. The firm had revenue of $774.30 million for the quarter, compared to the consensus estimate of $712.40 million. PTC had a return on equity of 25.84% and a net margin of 41.81%.The company’s revenue for the quarter was up 21.7% on a year-over-year basis. During the same period in the prior year, the business posted $1.79 earnings per share. PTC has set its FY 2026 guidance at 6.650-8.900 EPS and its Q3 2026 guidance at 1.240-1.780 EPS.

Key Headlines Impacting PTC

Here are the key news stories impacting PTC this week:

• Positive Sentiment: PTC beat Wall Street expectations with Q2 adjusted EPS of $2.69 and revenue of $774.3 million, both ahead of estimates, signaling stronger-than-expected execution. PTC earnings report
• Positive Sentiment: The company raised full-year fiscal 2026 guidance for revenue and non-GAAP EPS, which suggests management sees momentum continuing into the rest of the year. Reuters article
• Positive Sentiment: Investors also reacted to strong ARR growth, better cash generation, and a large share repurchase plan, all of which point to improving fundamentals and shareholder returns. Quiver Quantitative article
• Positive Sentiment: Analyst and market commentary today has been focused on PTC beating estimates and benefiting from AI-related demand trends, reinforcing the bullish reaction. Zacks article
• Neutral Sentiment: Some recent institutional filings show mixed ownership trends, with several funds adding to PTC while others trimmed positions. Fund update
• Negative Sentiment: One offsetting caution is that insider selling has been persistent over recent months, which may keep some investors guarded despite the strong earnings beat. Quiver Quantitative article

Wall Street Analysts Forecast Growth

PTC has been the topic of a number of recent analyst reports. Mizuho dropped their price target on PTC from $180.00 to $160.00 and set a “neutral” rating for the company in a research note on Monday, March 23rd. JPMorgan Chase & Co. lowered shares of PTC from a “neutral” rating to an “underweight” rating and lowered their target price for the company from $205.00 to $162.00 in a research note on Monday, February 2nd. Royal Bank Of Canada cut their target price on shares of PTC from $235.00 to $195.00 and set an “outperform” rating for the company in a research note on Thursday, February 5th. Barclays lifted their price target on shares of PTC from $180.00 to $185.00 and gave the company an “overweight” rating in a research note on Thursday. Finally, Citigroup boosted their price objective on PTC from $146.00 to $155.00 and gave the stock a “neutral” rating in a report on Friday. Ten investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $177.23.

Insiders Place Their Bets

In other PTC news, EVP Staats Aaron C. Von sold 240 shares of the company’s stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $161.10, for a total value 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. This represents a 1.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Corinna Lathan sold 675 shares of the company’s stock in a transaction on Monday, March 16th. The shares were sold at an average price of $157.24, for a total transaction of $106,137.00. Following the completion of the transaction, the director owned 8,429 shares of the company’s stock, valued at $1,325,375.96. This trade represents a 7.41% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.29% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of PTC. Skandinaviska Enskilda Banken AB publ boosted its position in PTC by 8.0% in the third quarter. Skandinaviska Enskilda Banken AB publ now owns 90,828 shares of the technology company’s stock valued at $18,444,000 after buying an additional 6,724 shares in the last quarter. Nordea Investment Management AB increased its position in shares of PTC by 25.9% in the fourth quarter. Nordea Investment Management AB now owns 269,396 shares of the technology company’s stock worth $47,136,000 after purchasing an additional 55,485 shares during the period. J. Safra Sarasin Holding AG boosted its holdings in shares of PTC by 15.4% during the 3rd quarter. J. Safra Sarasin Holding AG now owns 46,966 shares of the technology company’s stock valued at $9,535,000 after acquiring an additional 6,281 shares in the last quarter. Dakota Wealth Management raised its stake in PTC by 31.2% during the third quarter. Dakota Wealth Management now owns 38,975 shares of the technology company’s stock worth $7,913,000 after buying an additional 9,279 shares during the last quarter. Finally, Congress Asset Management Co. raised its holdings in PTC by 11.6% during the fourth quarter. Congress Asset Management Co. now owns 163,512 shares of the technology company’s stock worth $28,485,000 after buying an additional 17,020 shares during the last quarter. Institutional investors own 95.14% of the company’s stock.

PTC Trading Down 0.7%

The stock has a market capitalization of $17.45 billion, a PE ratio of 13.99, a price-to-earnings-growth ratio of 2.57 and a beta of 0.98. The firm has a 50-day moving average price of $146.29 and a 200-day moving average price of $163.60. The company has a current ratio of 1.68, a quick ratio of 1.22 and a debt-to-equity ratio of 0.31.

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.