PTC (NASDAQ:PTC) Issues Earnings Results

PTC (NASDAQ:PTC) posted its quarterly earnings data on Wednesday. The technology company reported $1.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.57 by $0.01, FiscalAI reports. PTC had a net margin of 41.81% and a return on equity of 25.84%. The business had revenue of $600.05 million during the quarter, compared to the consensus estimate of $611.62 million. During the same period in the prior year, the firm earned $1.64 EPS. PTC’s quarterly revenue was down 6.8% compared to the same quarter last year. 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 Stock Performance

PTC stock traded up $4.95 during mid-day trading on Wednesday, hitting $132.46. 2,884,147 shares of the company’s stock traded hands, compared to its average volume of 1,430,234. The stock has a market cap of $15.30 billion, a price-to-earnings ratio of 15.74, a P/E/G ratio of 1.86 and a beta of 0.99. The company has a debt-to-equity ratio of 0.30, a current ratio of 1.23 and a quick ratio of 1.23. The firm has a 50 day simple moving average of $126.29 and a two-hundred day simple moving average of $142.17. PTC has a fifty-two week low of $108.50 and a fifty-two week high of $219.69.

PTC News Summary

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

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on the company. Berenberg Bank set a $170.00 price objective on PTC in a report on Wednesday, May 27th. Wall Street Zen downgraded shares of PTC from a “buy” rating to a “hold” rating in a research note on Saturday, June 27th. BMO Capital Markets set a $155.00 price target on PTC in a report on Friday, July 24th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $190.00 price objective on shares of PTC in a research note on Tuesday, May 5th. Finally, BNP Paribas Exane initiated coverage on PTC in a research report on Thursday, June 18th. They set a “neutral” rating and a $130.00 target price for the company. Seven equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $172.50.

Insider Buying and Selling at PTC

In other PTC news, CAO Alice Christenson sold 816 shares of the stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $145.82, for a total transaction of $118,989.12. Following the transaction, the chief accounting officer owned 1,265 shares in the company, valued at $184,462.30. This represents a 39.21% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Corporate insiders own 0.29% of the company’s stock.

Institutional Trading of PTC

Several institutional investors and hedge funds have recently modified their holdings of PTC. Empowered Funds LLC boosted its stake in shares of PTC by 3.1% during the first quarter. Empowered Funds LLC now owns 2,498 shares of the technology company’s stock valued at $387,000 after purchasing an additional 75 shares in the last quarter. Geneos Wealth Management Inc. raised its stake in PTC by 34.4% during the first quarter. Geneos Wealth Management Inc. now owns 297 shares of the technology company’s stock worth $46,000 after buying an additional 76 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in shares of PTC by 68.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 705 shares of the technology company’s stock valued at $121,000 after purchasing an additional 287 shares during the period. Cerity Partners LLC acquired a new position in PTC in the second quarter valued at approximately $257,000. Finally, Alliancebernstein L.P. boosted its stake in PTC by 3.2% during the second quarter. Alliancebernstein L.P. now owns 132,962 shares of the technology company’s stock worth $22,915,000 after acquiring an additional 4,176 shares in the last quarter. 95.14% of the stock is currently owned by institutional investors.

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.