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

PTC (NASDAQ:PTC) announced its earnings results on Wednesday. The technology company reported $2.69 EPS for the quarter, topping analysts’ consensus estimates of $2.06 by $0.63, FiscalAI reports. The firm had revenue of $774.30 million during the quarter, compared to analysts’ expectations of $712.40 million. PTC had a return on equity of 24.63% and a net margin of 28.86%. 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 0.6%

Shares of PTC stock traded down $0.79 during mid-day trading on Wednesday, hitting $136.76. The stock had a trading volume of 4,091,831 shares, compared to its average volume of 1,171,320. PTC has a 12-month low of $130.89 and a 12-month high of $219.69. The firm has a market capitalization of $16.27 billion, a P/E ratio of 19.96, a price-to-earnings-growth ratio of 2.40 and a beta of 0.98. The firm’s 50-day moving average is $146.69 and its two-hundred day moving average is $164.45. The company has a debt-to-equity ratio of 0.31, a current ratio of 1.22 and a quick ratio of 1.22.

Insider Buying and Selling at PTC

In other PTC news, Director Corinna Lathan sold 675 shares of the company’s stock in a transaction on 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 represents a 7.41% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Staats Aaron C. Von sold 240 shares of the company’s 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 sale, the executive vice president owned 22,221 shares of the company’s stock, valued at $3,579,803.10. This represents 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 corporate insiders.

Institutional Investors Weigh In On PTC

Several hedge funds have recently made changes to their positions in the company. State Street Corp lifted its holdings in shares of PTC by 5.6% in the 4th quarter. State Street Corp now owns 5,905,645 shares of the technology company’s stock worth $1,028,822,000 after buying an additional 312,000 shares during the period. Price T Rowe Associates Inc. MD raised its position in shares of PTC by 1.4% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 3,025,046 shares of the technology company’s stock worth $526,994,000 after acquiring an additional 41,240 shares in the last quarter. Standard Investments LLC raised its position in shares of PTC by 14.3% in the 4th quarter. Standard Investments LLC now owns 1,812,500 shares of the technology company’s stock worth $315,756,000 after acquiring an additional 226,500 shares in the last quarter. Invesco Ltd. raised its position in shares of PTC by 26.8% in the 4th quarter. Invesco Ltd. now owns 1,710,141 shares of the technology company’s stock worth $297,924,000 after acquiring an additional 361,038 shares in the last quarter. Finally, Northern Trust Corp raised its position in shares of PTC by 2.6% in the 3rd quarter. Northern Trust Corp now owns 1,379,890 shares of the technology company’s stock worth $280,145,000 after acquiring an additional 34,663 shares in the last quarter. 95.14% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of equities analysts have recently commented on PTC shares. Mizuho dropped their target price on PTC from $180.00 to $160.00 and set a “neutral” rating for the company in a report on Monday, March 23rd. Barclays initiated coverage on PTC in a report on Tuesday, March 17th. They set an “overweight” rating and a $180.00 price objective for the company. Oppenheimer dropped their price objective on PTC from $240.00 to $200.00 and set an “outperform” rating for the company in a report on Wednesday, January 28th. Wall Street Zen upgraded PTC from a “hold” rating to a “buy” rating in a report on Saturday, April 18th. Finally, Stifel Nicolaus set a $180.00 price objective on PTC in a report on Thursday, February 5th. Ten equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $180.54.

Trending Headlines about PTC

Here are the key news stories impacting PTC this week:

• Positive Sentiment: Strong Q2 results: PTC reported Q2 FY’26 EPS of $2.69 vs. consensus $2.06 and revenue of $774.3M vs. $712.4M expected — a clear beat that signals healthy revenue and margin performance. PR Newswire: Q2 Results
• Positive Sentiment: Profitability & cash flow: Management reported ~14% operating and free cash flow growth, 28.9% net margin and 24.6% ROE — metrics that support valuation and buyback activity. PR Newswire: Q2 Results
• Positive Sentiment: Large buyback program: PTC used ~ $625M for repurchases in Q2, is targeting $1.225B–$1.325B for FY’26 and approved a new $2B repurchase authorization for FY’27–’28 — supports EPS accretion and shareholder returns. PR Newswire: Q2 Results / Buybacks
• Positive Sentiment: Enterprise contract win: The U.S. Army designated PTC’s Windchill PLM as its official enterprise PDM/PLM solution — a strategic, high‑visibility win that can drive multi‑year revenue and credibility in government/defense. PR Newswire: Windchill / U.S. Army
• Positive Sentiment: Customer expansion: Hamilton Medical selected PTC’s Codebeamer to replace legacy ALM systems and expand collaboration with Windchill — a multi‑year commercial adoption that strengthens vertical market momentum. PR Newswire: Codebeamer / Hamilton Medical
• Positive Sentiment: Analyst backing: Rosenblatt reaffirmed a “buy” with a $190 price target, providing an upside catalyst if sentiment improves. Benzinga: Rosenblatt Rating
• Neutral Sentiment: Underlying momentum and expectations: Previews and analyst notes (Zacks, media previews) emphasized double‑digit revenue and EPS growth expectations, strong ARR momentum and expanding AI capabilities — supportive but forward‑looking. Zacks: Q2 Preview
• Neutral Sentiment: Local subsidiary housekeeping: PTC India Financial Services reported a clean audit and board clearance of accounts — routine corporate housekeeping with limited market impact. TipRanks: PTC India Audit

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.