PTC (PTC) AI Stock Analysis

• Market Cap: $23.00B
• Dividend Yield: N/A
• Average Volume (3M): 689.61K
• Price to Earnings (P/E): 44.8
• Beta (1Y): 1.04
• Revenue Growth: 19.18%
• EPS Growth: 96.62%
• Country: US
• Employees: 7,512
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 3.47
• Shares Outstanding: 119,792,700
• 10 Day Avg. Volume: 741,879
• 30 Day Avg. Volume: 689,609
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $228.33
• Price Target Upside: 31.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $189.00 ▲(8.66% Upside)

PTC's overall stock score is driven by strong financial performance and a positive earnings call outlook, despite bearish technical indicators and a high valuation. The company's strategic initiatives and robust cash flow position it well for future growth, but potential risks from divestitures and macroeconomic conditions warrant caution.

Positive Factors

Strong Financial Health

PTC's robust financial health, characterized by high margins and consistent revenue growth, supports long-term stability and operational flexibility.

Product and AI Development

Advancements in AI-driven product offerings and strategic partnerships enhance PTC's competitive edge and market positioning, fostering sustainable growth.

Cash Flow Growth

Strong cash flow growth enhances PTC's financial flexibility, enabling strategic investments and shareholder returns, supporting long-term growth.

Negative Factors

Macroeconomic Uncertainty

Macroeconomic and policy uncertainties can impact customer decision-making, potentially affecting PTC's revenue growth and market expansion efforts.

ServiceMax Churn Events

Churn events in ServiceMax could indicate challenges in customer retention, potentially impacting PTC's recurring revenue streams and long-term growth.

Moderated Revenue Growth

While revenue growth remains steady, the moderation may suggest challenges in accelerating market expansion, potentially affecting future growth trajectories.

PTC Business Overview & Revenue Model

Company Description

PTC Inc. is a global technology company specializing in augmented reality (AR), Internet of Things (IoT), and product lifecycle management (PLM) software solutions. Founded in 1985, PTC operates across various sectors, including manufacturing, automotive, aerospace, and consumer products. The company’s core products include Windchill for PLM, ThingWorx for IoT applications, and Vuforia for AR experiences, enabling businesses to enhance product development and operational efficiencies.

How the Company Makes Money

PTC generates revenue primarily through software licensing, subscription services, and professional services. The company offers a range of software solutions that are sold as perpetual licenses or through subscription-based models, with recurring revenue being a significant component due to the increasing demand for cloud-based solutions. Key revenue streams include software maintenance and support services, which provide ongoing updates and technical assistance to customers. Additionally, PTC earns revenue from consulting and training services that help clients implement and optimize their software solutions. The company has established strategic partnerships with major technology firms and industry leaders, enhancing its market presence and contributing to its earnings through joint ventures and integrated solutions.

PTC Financial Statement Overview

Summary

PTC exhibits strong financial performance with impressive revenue and profit growth. The income statement shows a 10.81% revenue increase and a robust gross profit margin of 83.78%. The balance sheet is stable with a debt-to-equity ratio of 0.36, and the cash flow statement highlights an 81.3% free cash flow growth rate. Overall, PTC is well-positioned for continued growth and financial stability.

Income Statement

PTC has demonstrated strong revenue growth with a 10.81% increase in the latest year, supported by a robust gross profit margin of 83.78%. The net profit margin has also improved significantly to 27.06%, indicating enhanced profitability. The EBIT and EBITDA margins are healthy at 35.86% and 38.87%, respectively, reflecting efficient operational management. Overall, the income statement shows a positive growth trajectory and strong profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.36, indicating moderate leverage. The return on equity is strong at 19.34%, showcasing effective use of equity to generate profits. The equity ratio stands at 57.85%, suggesting a solid equity base relative to total assets. While the company has managed its debt well, maintaining this balance will be crucial for future stability.

Cash Flow

PTC's cash flow statement shows a healthy free cash flow growth rate of 81.3%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 1.17, suggesting efficient conversion of income into cash. The free cash flow to net income ratio is 1.16, further emphasizing the company's ability to generate cash relative to its net income. Overall, the cash flow position is strong, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.74B	2.74B	2.30B	2.10B	1.93B	1.81B
Gross Profit	2.29B	2.29B	1.85B	1.66B	1.55B	1.44B
EBITDA	1.06B	1.06B	730.02M	599.14M	573.41M	564.77M
Net Income	741.03M	741.03M	376.33M	245.54M	313.08M	476.92M
Balance Sheet
Total Assets	6.62B	6.62B	6.38B	6.29B	4.69B	4.52B
Cash, Cash Equivalents and Short-Term Investments	184.41M	184.41M	265.81M	288.10M	272.18M	326.53M
Total Debt	1.37B	1.37B	1.93B	1.89B	1.54B	1.65B
Total Liabilities	2.79B	2.79B	3.17B	3.61B	2.39B	2.47B
Stockholders Equity	3.83B	3.83B	3.21B	2.68B	2.30B	2.04B
Cash Flow
Free Cash Flow	856.69M	856.69M	735.61M	586.25M	409.38M	343.55M
Operating Cash Flow	867.70M	867.70M	749.98M	610.86M	435.33M	368.81M
Investing Cash Flow	-17.54M	-17.54M	-124.81M	-858.51M	-229.47M	-688.82M
Financing Cash Flow	-929.26M	-929.26M	-650.73M	260.71M	-235.82M	371.23M

PTC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 173.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 173.93 is below the 20-day moving average (MA) of 199.19, below the 50-day MA of 203.40, and below the 200-day MA of 181.79, indicating a bearish trend. The MACD of -4.41 indicates Positive momentum. The RSI at 16.73 is Positive, neither overbought nor oversold. The STOCH value of 9.16 is Positive, 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	70 Outperform	$23.32B	55.34	16.36%	―	23.18%	63.48%
GWRE	69 Neutral	$18.62B	269.59	4.99%	―	22.64%	―
PTC	67 Neutral	$23.00B	44.78	21.03%	―	19.18%	96.62%
TYL	66 Neutral	$20.21B	64.17	9.17%	―	10.62%	31.43%
U	64 Neutral	$17.90B	―	-13.64%	―	-8.23%	48.57%
HUBS	62 Neutral	$24.49B	―	-0.65%	―	18.96%	58.78%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

PTC Corporate Events

PTC Inc. Earnings Call Highlights Strategic Growth Plans

PTC Inc. Earnings Call Reflects Optimism Amid Strategic Changes

PTC Inc. Reports Record Cash Flow and Strategic Divestitures

PTC Inc. is a global software company specializing in digital transformation solutions for industrial and manufacturing sectors, focusing on engineering, manufacturing, and service of physical products. In its latest earnings report, PTC Inc. announced a record annual cash flow for fiscal year 2025, highlighting an 8.5% growth in constant currency ARR and a 16% increase in both operating and free cash flow. The company is strategically focusing on its Intelligent Product Lifecycle vision by divesting its Kepware and ThingWorx businesses, aiming for a more streamlined portfolio. Key financial metrics for the fourth quarter included a 10% increase in ARR, a 43% rise in revenue, and a significant 182% jump in earnings per share compared to the previous year. For the full fiscal year, PTC reported a 19% revenue growth and a 97% increase in earnings per share. Looking ahead, PTC’s management has set a guidance for fiscal year 2026, projecting a constant currency ARR growth of 7% to 9% and operating cash flow of approximately $1.03 billion. The company plans to continue its share repurchase program, reflecting confidence in its financial flexibility and growth prospects.

PTC Sells ThingWorx and Kepware for $600 Million

On November 5, 2025, PTC Inc. entered into an Asset Purchase Agreement with Parrot US Buyer, L.P., an entity controlled by TPG Global, LLC, to sell its ThingWorx and Kepware businesses for $600 million in cash, with potential additional contingent consideration of up to $125 million. The agreement includes various conditions and adjustments related to working capital, indebtedness, and financial performance metrics, and is set to close by February 1, 2026, subject to regulatory approvals and other conditions. This transaction is part of PTC’s strategic efforts to streamline its portfolio, although it is not subject to shareholder approval or financing conditions, and includes indemnification agreements for certain liabilities post-closing.

The most recent analyst rating on (PTC) stock is a Buy with a $233.00 price target. To see the full list of analyst forecasts on PTC stock, see the PTC Stock Forecast page.

PTC Appoints James Lico to Board of Directors

On October 10, 2025, PTC Inc. announced the appointment of James Lico to its Board of Directors, effective October 13, 2025. Lico, who has extensive experience in leadership roles at Fortive Corporation and Danaher Corporation, will also serve on PTC’s Corporate Governance Committee. His compensation includes a prorated annual cash retainer and equity retainers, along with a one-time initial director grant of RSUs. This strategic appointment is likely to bolster PTC’s governance capabilities, given Lico’s significant industry experience and leadership background.

The most recent analyst rating on (PTC) stock is a Buy with a $227.00 price target. To see the full list of analyst forecasts on PTC stock, see the PTC Stock Forecast page.