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PTC
(NASDAQ:PTC)
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Rating:72Outperform
Price Target:
$147.00
▲(24.03% Upside)
Action:Reiterated
Date:07/30/26
The score is driven primarily by strong fundamentals (very high margins and robust free cash flow) and a constructive earnings update (raised/tightened guidance and strong ARR/cash flow performance). Offsetting factors are slowing/negative TTM revenue growth, limited balance-sheet data reliability in the latest period, and a mixed technical backdrop with the price still below longer-term moving averages.
Positive Factors
High Margins
PTC's very high and expanding margins (TTM gross ~84%, net ~42%) reflect scalable software economics across CAD, PLM, IoT and AR product suites. Durable margin strength supports reinvestment, resilience during revenue cycles, and capacity for sustained shareholder returns.
Negative Factors
Soft Top-Line Trend
Negative TTM revenue growth (~-1.5%) signals top-line softness despite margin expansion. Sustained weak revenue makes future margin gains harder to maintain and increases reliance on cost efficiency and buybacks to drive EPS, constraining durable organic growth optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
High Margins
PTC's very high and expanding margins (TTM gross ~84%, net ~42%) reflect scalable software economics across CAD, PLM, IoT and AR product suites. Durable margin strength supports reinvestment, resilience during revenue cycles, and capacity for sustained shareholder returns.
Read all positive factors
PTC Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
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The Fly
The FlyPTC (PTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.85B
Dividend YieldN/A
Average Volume (3M)1.93M
Price to Earnings (P/E)13.2
Beta (1Y)0.95
Revenue Growth19.50%
EPS Growth143.45%
CountryUS
Employees7,642
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)10.38
Shares Outstanding115,505,790
10 Day Avg. Volume1,447,529
30 Day Avg. Volume1,927,720
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)6.37
Price to Sales (P/S)8.89
P/FCF Ratio28.44
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$166.57Price Target Upside40.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)8.04
Revenue Forecast (FY)$2.73B
PTC Business Overview & Revenue Model
Company Description
PTC Inc. operates as a global provider of software and services, with its market presence extending across the Americas, Europe, and the Asia Pacific regions. The company's business is organized into two primary divisions: Software Products and Pr...
How the Company Makes Money
PTC primarily makes money by selling software subscriptions and related services to enterprise customers. A major revenue stream is recurring subscription revenue from its core software portfolios: (1) CAD and PLM (e.g., Creo and Windchill), where...
PTC Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call emphasized strong operating performance: Q3 beat key metrics (net new ARR, ARR growth, operating and free cash flow), aggressive share repurchases, raised guidance, and clear momentum in AI product adoption and go-to-market transformation. Key positives include $60M net new ARR in Q3, ARR up 9.1% YoY (ex. divestitures), outsized share buybacks, and a growing deferred ARR balance (roughly 2x year-ago). Lowlights are manageable and execution-linked: Q3 revenue missed the midpoint ($600M) due to timing of one large contract, Q4 free cash flow is pressured by divestiture-related capital gains outflows (~$15M), AI monetization is expected to scale over the medium-to-long term (pilots then scale), and comparative reporting is complicated by the Kepware/ThingWorx divestiture. Overall, the positives and raised guidance outweigh the noted risks, but outcomes remain execution-dependent heading into Q4 and FY '27.Positive Updates
Net New ARR and ARR Growth
Generated $60 million of net new ARR in Q3; constant-currency ARR (ex. Kepware & ThingWorx) of $2.448 billion, up 9.1% year-over-year and above the high end of guidance.
Negative Updates
Q3 Revenue Miss vs Guide Midpoint
Q3 revenue of $600 million was below the midpoint of guidance; management attributed the shortfall to the shortened duration of a single large contract expansion.
Read all updates
Q3-2026 Updates
Positive
Negative
Net New ARR and ARR Growth
Generated $60 million of net new ARR in Q3; constant-currency ARR (ex. Kepware & ThingWorx) of $2.448 billion, up 9.1% year-over-year and above the high end of guidance.
Read all positive updates
Company Guidance
PTC raised and tightened its fiscal 2026 outlook, increasing the midpoint of annual ARR growth to 9.25% (guiding constant‑currency ARR ex‑Kepware/ThingWorx to ~9.0–9.5%) with a fiscal‑year net new ARR midpoint of $214M and an expected Q4 net new ARR range of $79–92M after generating $60M of net new ARR in Q3; Q3 constant‑currency ARR was $2.448B, up 9.1% Y/Y (ex‑Kepware/ThingWorx), Q3 operating cash flow was $261M and free cash flow was $249M (both above guidance), and management now expects full‑year free cash flow of ~ $850M with Q4 FCF of ~ $15M; revenue guidance was raised to $2.69–2.75B and non‑GAAP EPS to $7.87–8.42; capital return activity included $525M of repurchases in Q3 and an increased full‑year repurchase plan of ~$1.625B (vs. prior $1.225–1.325B), reducing diluted shares to ~115M in Q3 and a projected ~116M for the full year (vs. 121M in FY25).PTC Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.95B | 2.74B | 2.30B | 2.10B | 1.93B | 1.81B |
| Gross Profit | 2.48B | 2.29B | 1.85B | 1.66B | 1.55B | 1.44B |
| EBITDA | 1.67B | 1.13B | 730.02M | 599.14M | 573.41M | 564.77M |
| Net Income | 1.22B | 734.00M | 376.33M | 245.54M | 313.08M | 476.92M |
Balance Sheet | ||||||
| Total Assets | 6.51B | 6.62B | 6.38B | 6.29B | 4.69B | 4.51B |
| Cash, Cash Equivalents and Short-Term Investments | 351.45M | 184.41M | 265.81M | 288.10M | 272.18M | 326.53M |
| Total Debt | 1.61B | 1.37B | 1.93B | 1.89B | 1.54B | 1.65B |
| Total Liabilities | 3.04B | 2.79B | 3.17B | 3.61B | 2.39B | 2.47B |
| Stockholders Equity | 3.47B | 3.83B | 3.21B | 2.68B | 2.30B | 2.04B |
Cash Flow | ||||||
| Free Cash Flow | 935.48M | 856.69M | 731.62M | 586.25M | 409.38M | 343.55M |
| Operating Cash Flow | 955.32M | 867.70M | 749.98M | 610.86M | 435.33M | 368.81M |
| Investing Cash Flow | 544.58M | -17.54M | -124.81M | -866.12M | -201.20M | -687.86M |
| Financing Cash Flow | -1.34B | -929.26M | -650.73M | 268.31M | -264.08M | 370.26M |
PTC Technical Analysis
Positive
118.52
Price Trends
126.97
Positive
135.01
Positive
154.11
Negative
Market Momentum
1.91
Negative
65.38
Neutral
85.12
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PTC, the sentiment is Positive. The current price of 118.52 is below the 20-day moving average (MA) of 124.67, below the 50-day MA of 126.97, and below the 200-day MA of 154.11, indicating a neutral trend. The MACD of 1.91 indicates Negative momentum. The RSI at 65.38 is Neutral, neither overbought nor oversold. The STOCH value of 85.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PTC.
PTC Risk Analysis
PTC disclosed 23 risk factors in its most recent earnings report. PTC reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
PTC Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $12.68B | 40.58 | 8.71% | ― | 8.19% | 6.70% | |
74 Outperform | $8.48B | 20.27 | 16.91% | ― | 15.55% | 6.91% | |
73 Outperform | $12.16B | 124.39 | 5.02% | ― | 21.05% | ― | |
72 Outperform | $15.85B | 13.22 | 32.64% | ― | 19.50% | 143.45% | |
68 Neutral | $12.65B | 80.39 | 10.99% | ― | 24.92% | 356.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $13.84B | -20.20 | -21.33% | ― | 7.55% | -39.50% |
* Technology Sector Average
PTC
PTC
137.20
-79.21
-36.60%
GWRE
Guidewire
151.94
-74.25
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TYL
Tyler Technologies
309.60
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-48.66%
HUBS
HubSpot
237.36
-264.84
-52.74%
TTD
Trade Desk
18.04
-71.72
-79.90%
U
Unity Software
31.71
-2.30
-6.76%
PTC Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
PTC Delivers Strong Q2 Results and Expands Buybacks
Positive
May 6, 2026
PTC reported strong results for its second fiscal quarter ended March 31, 2026, with revenue up 22% year on year, constant-currency ARR excluding divested businesses up 8.5%, and operating and free cash flow each rising 14%, while GAAP EPS was boo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.