PTC (PTC) AI Stock Analysis

• Market Cap: $18.55B
• Dividend Yield: N/A
• Average Volume (3M): 1.25M
• Price to Earnings (P/E): 31.2
• Beta (1Y): 0.97
• Revenue Growth: 19.18%
• EPS Growth: 96.62%
• Country: US
• Employees: 7,512
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.92
• Shares Outstanding: 118,996,120
• 10 Day Avg. Volume: 1,008,434
• 30 Day Avg. Volume: 1,252,217
• PEG Ratio: 0.35
• Price to Book (P/B): 6.37
• Price to Sales (P/S): 8.89
• P/FCF Ratio: 28.44
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 6.95
• Enterprise Value/Gross Profit: 8.26
• Enterprise Value/Ebitda: 16.29
• 1Y Price Target: $185.55
• Price Target Upside: 18.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 8.09
• Revenue Forecast (FY): $2.83B

• Rating: 71 Outperform
• Price Target: $172.00 ▲(10.30% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is driven primarily by strong profitability and free-cash-flow generation, supported by constructive guidance and an aggressive capital return plan. Offsetting factors include a weak technical setup (price below key moving averages with negative MACD/soft RSI) and a valuation that looks somewhat demanding (P/E ~31) given steady—not rapid—top-line growth, plus some execution/timing risk around ARR conversion and post-divestiture transition.

Positive Factors

High margins & profitability

Sustained, very high gross and operating margins provide durable earnings power and strong cash conversion. This margin profile supports reinvestment in R&D, funds capital returns, and gives resilience to pricing pressure, underpinning long-term profitability even with modest revenue growth.

Strong free cash flow & buybacks

Consistent, high free cash flow combined with an explicit multi-quarter buyback program anchors capital returns and EPS accretion. Reliable FCF generation funds buybacks and strategic investments, offering durable shareholder cash return optionality and financial flexibility over the medium term.

Product & AI momentum

Ongoing product releases and AI integration strengthen the product suite and create cross-product synergies that raise switching costs. A unified AI infrastructure and deeper integrations improve enterprise stickiness and support multi-year ARR expansion through higher renewals and upsell.

Negative Factors

Modest top-line growth

Steady but slow revenue growth limits operating leverage and the pace at which the company can expand addressable market share. With high profitability, the business relies more on renewals, large deals and product-led expansion, which raises execution dependency for durable growth acceleration.

Back‑end loaded ARR conversion risk

A meaningful portion of booked demand is deferred ARR expected to convert later, concentrating recognition into back half of the fiscal cycle. This creates multi-quarter timing risk for ARR-to-revenue conversion, increasing execution sensitivity around implementations and seasonality.

Balance-sheet data inconsistency & divestiture noise

Inconsistent balance-sheet data reduces transparency when assessing leverage and liquidity, while divestiture-related one-time cash flows and costs create near-term comparability noise. Together they complicate durable assessment of financial risk and capital allocation clarity.

PTC Business Overview & Revenue Model

Company Description

PTC Inc. operates as software and services company in the Americas, Europe, and the Asia Pacific. The company operates in two segments, Software Products and Professional Services. It offers ThingWorx platform, which offers a set of capabilities that enable enterprises to digitally transform every aspect of their business with innovative solutions that are simple to create, easy to implement, scalable to meet future needs, and designed to enable customers to accelerate time to value; and Vuforia, which enables the visualization of digital information in a physical context and the creation of AR. The company also provides Onshape, a software-as-a-service product development platform unites computer-aided design with data management, collaboration tools, and real-time analytics; Arena, a PLM solution enables product teams to collaborate virtually anytime and anywhere; Creo, a 3D CAD technology enables the digital design, testing, and modification of product models; and Windchill, a product lifecycle management software. In addition, it offers Integrity, an application lifecycle management solution; Servigistics, service parts management solution; and consulting, implementation, training, cloud, and license and support services. The company was formerly known as Parametric Technology Corporation and changed its name to PTC Inc. in January 2013. PTC Inc. was incorporated in 1985 and is headquartered in Boston, Massachusetts.

How the Company Makes Money

PTC primarily makes money by selling software licenses and subscriptions for its industrial software portfolio and related support/services. A key revenue stream is recurring subscription revenue from time-based access to its PLM, CAD, ALM, IoT, and AR software offerings (including cloud and on-premises subscription models), typically sold to enterprise and mid-market customers. The company also generates revenue from maintenance and support contracts (e.g., technical support, updates, and product enhancements) tied to its software deployments, and from professional services such as implementation, integration, training, and consulting that help customers deploy and adopt PTC solutions. Revenue is influenced by enterprise contract size and duration, renewals/expansions within existing accounts, and ecosystem/channel activity (e.g., sales through partners and system integrators), but specific partnership-level contribution details are null.

PTC Financial Statement Overview

Summary

High-quality profitability and cash generation: very high gross margin (~84%), strong operating/EBITDA margins (~36%/~41%), solid net margin (~27%), and strong free cash flow (~$0.89B TTM). Growth is steady but modest (TTM revenue ~4.4%), and the latest balance sheet snapshot shows internal inconsistencies (debt/equity fields vs debt-to-equity), which adds some risk to the otherwise improving leverage trend.

Income Statement

TTM (Trailing-Twelve-Months) results show strong profitability with very high gross margin (~84%) and robust operating and EBITDA margins (~36% and ~41%), alongside a healthy net margin (~27%). Revenue growth is positive but moderate in the TTM period (~4.4%) and has generally trended in the mid-to-high single digits in prior years, suggesting solid but not hyper-growth. Overall, earnings quality looks strong, but the main weakness is the relatively modest top-line growth profile versus high profitability.

Balance Sheet

Leverage appears manageable with debt-to-equity improving versus prior years (down to ~0.36 from ~0.60–0.81 historically), and returns on equity have strengthened (about ~19–21% in the most recent periods). Total assets are stable (~$6.4–$6.6B). Key risk: the TTM balance sheet fields show total debt and equity as 0 despite a non-zero debt-to-equity ratio, indicating data inconsistency in the most recent snapshot; this reduces confidence in the latest balance sheet detail, even though the annual data points to improving balance sheet risk.

Cash Flow

Cash generation is strong and improving: operating cash flow is high (~$0.9B TTM) and free cash flow is nearly the same (~$0.89B TTM), indicating efficient conversion and limited cash leakage. Free cash flow growth is positive (TTM ~3.7%) and free cash flow is roughly in line with net income (~0.99x), supporting earnings quality. The main drawback is that operating cash flow is below net income (coverage ~0.70 in the latest periods), which can signal working-capital or timing headwinds even as free cash flow remains strong.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	2.86B	2.74B	2.30B	2.10B	1.93B	1.81B
Gross Profit	2.41B	2.29B	1.85B	1.66B	1.55B	1.44B
EBITDA	1.22B	1.13B	730.02M	599.14M	573.41M	564.77M
Net Income	818.28M	734.00M	376.33M	245.54M	313.08M	476.92M
Balance Sheet
Total Assets	6.43B	6.62B	6.38B	6.29B	4.69B	4.51B
Cash, Cash Equivalents and Short-Term Investments	210.34M	184.41M	265.81M	288.10M	272.18M	326.53M
Total Debt	1.54B	1.37B	1.93B	1.89B	1.54B	1.65B
Total Liabilities	2.58B	2.79B	3.17B	3.61B	2.39B	2.47B
Stockholders Equity	3.84B	3.83B	3.21B	2.68B	2.30B	2.04B
Cash Flow
Free Cash Flow	888.43M	856.69M	731.62M	586.25M	409.38M	343.55M
Operating Cash Flow	899.01M	867.70M	749.98M	610.86M	435.33M	368.81M
Investing Cash Flow	-42.22M	-17.54M	-124.81M	-866.12M	-201.20M	-687.86M
Financing Cash Flow	-849.01M	-929.26M	-650.73M	268.31M	-264.08M	370.26M

PTC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 155.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PTC, the sentiment is Negative. The current price of 155.94 is below the 20-day moving average (MA) of 157.69, below the 50-day MA of 161.08, and below the 200-day MA of 183.55, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 44.26 is Neutral, neither overbought nor oversold. The STOCH value of 21.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PTC.

PTC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TTD	73 Outperform	$13.01B	41.10	16.89%	―	20.82%	41.82%
GWRE	72 Outperform	$13.59B	49.66	12.92%	―	22.80%	198.93%
PTC	71 Outperform	$18.55B	31.21	22.47%	―	19.18%	96.62%
TYL	71 Outperform	$15.04B	61.99	8.73%	―	10.62%	31.43%
HUBS	70 Outperform	$13.94B	458.50	2.30%	―	19.21%	75.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
U	54 Neutral	$8.41B	-46.16	-12.57%	―	-8.23%	48.57%

PTC Corporate Events

PTC Divests IoT Units and Launches Major Buyback

On March 16, 2026, PTC completed the previously announced sale of its Kepware industrial connectivity and ThingWorx IoT businesses to an affiliate of TPG for $523 million in cash, enabling the company to sharpen its strategic focus on its Intelligent Product Lifecycle vision. After roughly $40 million in divestiture costs and about $110 million in related cash taxes, PTC expects net after-tax proceeds of approximately $375 million, which it plans to deploy entirely into share repurchases, including a $375 million accelerated buyback in the second quarter of fiscal 2026, while updating its fiscal 2026 and second-quarter guidance to reflect lower revenue and free cash flow but a higher GAAP EPS range driven in part by a $464 million gain on the sale and non-recurring divestiture impacts.

The most recent analyst rating on (PTC) stock is a Buy with a $178.00 price target. To see the full list of analyst forecasts on PTC stock, see the PTC Stock Forecast page.

PTC Shareholders Approve Directors, Pay and Auditor Oversight

At its annual meeting of shareholders held on February 11, 2026, PTC shareholders voted on the election of eight directors to serve until the 2027 annual meeting, an advisory say‑on‑pay resolution, and the ratification of the company’s independent auditor for 2026. All eight director nominees received strong majority support, the executive compensation program was approved in an advisory vote, and shareholders confirmed PricewaterhouseCoopers LLP as PTC’s independent registered public accounting firm for 2026, reinforcing continuity in the company’s governance and oversight structure.

The most recent analyst rating on (PTC) stock is a Hold with a $167.00 price target. To see the full list of analyst forecasts on PTC stock, see the PTC Stock Forecast page.