PTC Inc. ( (PTC) ) has released its Q3 earnings. Here is a breakdown of the information PTC Inc. presented to its investors.
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PTC Inc. is a global software company specializing in digital transformation solutions for industrial and manufacturing sectors, enabling companies to innovate in engineering, manufacturing, and servicing physical products. In its third fiscal quarter of 2025, PTC reported robust financial performance, with significant growth in revenue and earnings per share, surpassing its guidance ranges. The company achieved a 9.3% growth in constant currency Annual Run Rate (ARR) and a 14% increase in both operating and free cash flow. PTC also announced an increase in its financial guidance for the full fiscal year, reflecting confidence in its strategic initiatives and market position.
Key financial highlights for the quarter include a 24% increase in revenue to $644 million and a 106% rise in earnings per share to $1.17. The company’s operating margin improved significantly, reaching 33%, while non-GAAP earnings per share grew by 68% to $1.64. PTC also continued its share repurchase program, buying back $75 million worth of stock, and aims to complete a total of $300 million in repurchases by the end of the fiscal year.
PTC’s strategic focus on advancing its core areas of CAD, PLM, ALM, SLM, and SaaS has resulted in new product offerings and key customer wins. Despite a challenging macroeconomic environment, the company remains optimistic about future customer engagements and expects continued growth in its ARR and cash flow. The company is also investing in AI-driven and verticalized growth, laying a strong foundation for future expansion.
Looking ahead, PTC’s management anticipates sustained financial growth, with updated guidance projecting an 8% to 9% increase in constant currency ARR and free cash flow of approximately $850 million for the fiscal year 2025. The company remains committed to disciplined financial management and strategic capital allocation, aiming to reduce its leverage ratio and enhance shareholder value through continued share repurchases.