PTC (NASDAQ:PTC) Announces Earnings Results, Beats Expectations By $0.01 EPS

PTC (NASDAQ:PTC) released its quarterly earnings results on Wednesday. The technology company reported $1.58 earnings per share for the quarter, beating analysts’ consensus estimates of $1.57 by $0.01, FiscalAI reports. PTC had a return on equity of 25.84% and a net margin of 41.81%.The firm had revenue of $600.05 million during the quarter, compared to analysts’ expectations of $611.62 million. During the same period last year, the firm posted $1.64 EPS. The business’s revenue was down 6.8% on a year-over-year basis. PTC updated its FY 2026 guidance to 7.870-8.420 EPS and its Q4 2026 guidance to 1.630-2.210 EPS.

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

• Q3 execution exceeded expectations, with $60 million in net new ARR and constant-currency ARR and free cash flow growth above the high end of guidance.
• PTC raised its fiscal 2026 constant-currency ARR growth guidance to approximately 9%–9.5%, increased revenue guidance to $2.69 billion–$2.75 billion, and lifted non-GAAP EPS guidance to $7.87–$8.42.
• AI momentum is building, including PTC’s largest AI deal to date—a near-seven-figure ServiceMax AI contract—and rising customer demand for PTC’s governed product-data systems as a foundation for enterprise AI.
• The company repurchased $525 million of stock in Q3 and now expects approximately $1.625 billion of fiscal 2026 repurchases, reducing the expected full-year diluted share count to about 116 million.
• Q4 free cash flow is expected to be only approximately $15 million, reflecting capital-gains-related cash outflows from the Kepware and ThingWorx divestiture; management also emphasized that delivering the expected Q4 ARR step-up still depends on execution.

PTC Trading Up 3.9%

Shares of PTC stock traded up $4.95 on Wednesday, reaching $132.46. 2,884,147 shares of the stock were exchanged, compared to its average volume of 1,431,705. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.23 and a quick ratio of 1.23. PTC has a one year low of $108.50 and a one year high of $219.69. The stock has a market cap of $15.30 billion, a PE ratio of 12.64, a P/E/G ratio of 1.83 and a beta of 0.99. The stock has a 50 day moving average price of $126.29 and a 200 day moving average price of $142.17.

Insider Transactions at PTC

In related news, CAO Alice Christenson sold 816 shares of PTC stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $145.82, for a total value of $118,989.12. Following the completion of the sale, the chief accounting officer directly owned 1,265 shares in the company, valued at $184,462.30. This trade represents a 39.21% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.29% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On PTC

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

Analyst Ratings Changes

A number of analysts have recently weighed in on PTC shares. Rosenblatt Securities restated a “buy” rating and issued a $190.00 target price on shares of PTC in a research note on Tuesday, May 5th. Berenberg Bank set a $170.00 price objective on shares of PTC in a research report on Wednesday, May 27th. BNP Paribas Exane began coverage on shares of PTC in a research note on Thursday, June 18th. They issued a “neutral” rating and a $130.00 target price for the company. BMO Capital Markets set a $155.00 target price on shares of PTC in a research report on Friday, July 24th. Finally, Robert W. Baird set a $198.00 price target on shares of PTC in a research note on Thursday, May 7th. Seven research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, PTC currently has a consensus rating of “Hold” and a consensus price target of $172.50.

Trending Headlines about PTC

Here are the key news stories impacting PTC this week:

• Positive Sentiment: PTC raised its fiscal 2026 outlook for annual recurring revenue, revenue and earnings per share while reaffirming cash-flow guidance. The company reported constant-currency ARR growth of 9.1% excluding divested businesses, above the high end of its prior target. PTC Announces Third Fiscal Quarter 2026 Results
• Positive Sentiment: PTC generated $260.6 million in operating cash flow and $249.3 million in free cash flow during the quarter, with growth exceeding management’s guidance ranges. It also repurchased approximately $525 million of stock, bringing fiscal-year buybacks above the high end of its target and potentially supporting per-share results. PTC Q3 Revenue Falls 7 Percent as EPS Reaches $1.03
• Neutral Sentiment: Fiscal third-quarter adjusted earnings were reported at $1.58 per share, essentially in line with some analyst estimates but below the $1.60 Zacks consensus. Revenue of approximately $600.0 million missed the $611.6 million consensus estimate. PTC Inc. Q3 Earnings and Revenues Miss Estimates
• Negative Sentiment: Quarterly revenue declined about 7% year over year to $600 million, while net income fell from $141.3 million to $118.8 million. The weaker reported results and lower-than-expected fourth-quarter EPS outlook could limit upside, although the full-year guidance increase is the more favorable signal for investors. PTC Q3 Revenue Falls 7 Percent as EPS Reaches $1.03

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.