PTC (NASDAQ:PTC) Releases 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 earnings per share for the quarter, beating the consensus estimate of $2.06 by $0.63, FiscalAI reports. PTC had a return on equity of 26.07% and a net margin of 41.81%.The firm had revenue of $774.30 million during the quarter, compared to the consensus estimate of $712.40 million. During the same period last year, the company earned $1.79 earnings per share. The company’s revenue was up 21.7% on a year-over-year basis. 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 opened at $147.65 on Friday. PTC has a one year low of $130.89 and a one year high of $219.69. The stock has a 50-day moving average of $146.29 and a 200 day moving average of $163.60. The company has a market capitalization of $17.57 billion, a price-to-earnings ratio of 14.09, a PEG ratio of 2.38 and a beta of 0.98. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.22 and a current ratio of 1.22.

Insider Activity

In related news, Director Corinna Lathan sold 675 shares of PTC stock in a transaction dated 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. This trade represents a 7.41% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Staats Aaron C. Von sold 240 shares of PTC stock in a transaction dated 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 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 ownership of the stock. The SEC filing for this sale provides additional information. 0.29% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On PTC

Large investors have recently bought and sold shares of the business. DV Equities LLC bought a new stake in PTC in the 4th quarter worth about $29,000. Quarry LP boosted its position in PTC by 86.2% in the third quarter. Quarry LP now owns 203 shares of the technology company’s stock worth $41,000 after purchasing an additional 94 shares during the last quarter. Geneos Wealth Management Inc. boosted its position in PTC by 34.4% in the first quarter. Geneos Wealth Management Inc. now owns 297 shares of the technology company’s stock worth $46,000 after purchasing an additional 76 shares during the last quarter. Osterweis Capital Management Inc. purchased a new position in PTC in the fourth quarter worth about $50,000. Finally, MUFG Securities EMEA plc purchased a new position in PTC in the second quarter worth about $61,000. 95.14% of the stock is currently owned by institutional investors.

Key Headlines Impacting PTC

Here are the key news stories impacting PTC this week:

• Positive Sentiment: Q2 beat and raised full?year outlook — PTC reported Q2 EPS $2.69 (vs. consensus ~ $2.06) and revenue $774.3M, then raised FY?2026 revenue to $2.58B–$2.82B and non?GAAP EPS to $6.65–$8.90, which drove investor confidence. PTC ANNOUNCES SECOND FISCAL QUARTER 2026 RESULTS
• Positive Sentiment: Large, immediate and multi?year buybacks — PTC repurchased roughly $625M in Q2, is targeting ~$1.225B–$1.325B for FY?26 and authorized a new $2B repurchase program for FY?27/28, boosting EPS leverage and returning capital. PTC jumps 7% after Q2 results, higher FY26 outlook and big buyback plan
• Positive Sentiment: AI?led product demand and ARR strength — Management cited AI?driven product modernization as a growth driver; constant?currency ARR growth was ~8.5% excluding divested businesses and operating/free cash flow rose ~14% YoY. PTC Q2 Earnings & Revenues Beat on AI-Led ARR Strength, Shares Jump
• Positive Sentiment: Commercial validation / new contract wins — The U.S. Army designated PTC’s Windchill PLM as its official enterprise PDM/PLM solution, a sign of large?scale customer adoption and potential long?term contract/renewal activity. PTC’s Windchill PLM designated by U.S. Army
• Neutral Sentiment: Quarterly guidance range has mixed read — Q3 EPS guidance (1.240–1.780) spans below and above the consensus (1.600), leaving some short?term uncertainty on the coming quarter even as full?year guidance was raised. PTC earnings details / guidance
• Neutral Sentiment: Analyst views and fund flows mixed — Street price targets are varied (median ~ $185) and some institutional moves show rebalancing (e.g., reported fund reductions), which could temper momentum. PTC Releases Q2 2026 Earnings, Stock Rises
• Negative Sentiment: Insider selling noted — public filings show Insider share sales in recent months; while not uncommon, ongoing insider sales can be viewed negatively by some investors. PTC jumps 7% after Q2 results, higher FY26 outlook and big buyback plan

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on PTC shares. Stifel Nicolaus set a $180.00 price target on PTC in a report on Thursday, February 5th. Weiss Ratings downgraded PTC from a “hold (c)” rating to a “hold (c-)” rating in a report on Wednesday. BMO Capital Markets reduced their price target on PTC from $219.00 to $189.00 and set an “outperform” rating for the company in a report on Thursday, February 5th. Barclays raised their price target on PTC from $180.00 to $185.00 and gave the company an “overweight” rating in a report on Thursday. Finally, Robert W. Baird set a $198.00 price target on PTC in a report on Thursday. 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 company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $176.54.

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.