PTC (PTC) AI Stock Analysis

• Market Cap: $18.27B
• Dividend Yield: N/A
• Average Volume (3M): 1.17M
• Price to Earnings (P/E): 22.4
• Beta (1Y): 1.00
• 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: 1,237,094
• 30 Day Avg. Volume: 1,170,839
• 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: 6.86
• Enterprise Value/Gross Profit: 8.14
• Enterprise Value/Ebitda: 16.06
• 1Y Price Target: $185.08
• Price Target Upside: 22.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 8.08
• Revenue Forecast (FY): $2.82B

• Rating: 73 Outperform
• Price Target: $178.00 ▲(17.97% Upside)
• Action: Upgraded Date: 02/12/26
• Date: Action: Upgraded 02/12/26

The score is driven primarily by strong financial quality (high margins and robust free cash flow) and a positive earnings-call outlook (raised guidance and significant buybacks). These strengths are tempered by weaker technical momentum (below key moving averages, negative MACD) and a valuation that is reasonable but not clearly discounted (P/E ~23.33).

Positive Factors

High profitability and cash generation

PTC's very high gross and operating margins, plus ~ $0.89B TTM free cash flow, provide durable internal funding for R&D, product investment, and capital returns. Strong cash generation supports reinvestment and strategic optionality across business cycles.

Recurring ARR growth and record deferred ARR

Healthy recurring ARR growth and record deferred ARR under contract create multi‑year revenue visibility. Contracted backlog and large deal wins reduce revenue volatility and support predictable cash flows as bookings convert over time.

Product, AI momentum and go‑to‑market improvements

Ongoing product releases, AI integrations and improved seller productivity strengthen competitive differentiation and cross‑sell capacity. Deeper product integrations and common AI infrastructure increase product stickiness and can sustainably raise lifetime value.

Negative Factors

Back‑end loaded ARR conversion timing risk

Concentrated deferred ARR conversion late in the fiscal cycle creates multi‑quarter timing risk: revenue and cash realization depend on implementation and conversion execution. Delays could compress growth metrics and raise execution sensitivity over many quarters.

ServiceMax residual churn and recovery needs

Residual churn at ServiceMax undermines recurring revenue stability and requires continued remediation and investment. Persistent churn can erode ARR base and increase sales/retention costs, reducing long‑term margin durability if not fully resolved.

Modest organic top‑line growth versus high margins

TTM revenue growth remains modest relative to very high margins, limiting organic upside. With top-line expansion constrained, long‑term return generation may rely more on efficiency, buybacks or M&A rather than sustained high‑rate organic growth.

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 generates revenue primarily through software licensing, subscription fees, and professional services. The company's key revenue streams include sales of its flagship products like Creo (CAD software), Windchill (PLM software), and ThingWorx (IoT platform). PTC offers both perpetual licenses and subscription-based models, allowing customers to choose according to their needs. Additionally, the company provides training and consulting services, which contribute to its earnings. Significant partnerships with companies in diverse industries further enhance PTC's market reach and drive sales, as they collaborate on integrated solutions that leverage PTC's technologies.

PTC Financial Statement Overview

Summary

Strong profitability and cash generation (very high gross margin ~84%, operating/EBITDA margins ~36%/~41%, and ~$0.89B TTM free cash flow). Growth is steady but moderate (TTM revenue ~4.4%). Balance-sheet leverage trends look improved, but the latest TTM balance-sheet data has internal inconsistencies (debt/equity fields), reducing confidence in the most recent snapshot.

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: 150.88
• 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 150.88 is below the 20-day moving average (MA) of 156.19, below the 50-day MA of 165.87, and below the 200-day MA of 184.26, indicating a bearish trend. The MACD of -3.49 indicates Negative momentum. The RSI at 40.10 is Neutral, neither overbought nor oversold. The STOCH value of 40.16 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
PTC	73 Outperform	$18.27B	22.43	23.34%	―	19.18%	96.62%
TYL	72 Outperform	$13.92B	44.96	8.90%	―	10.62%	31.43%
TTD	70 Outperform	$12.06B	28.45	16.78%	―	20.82%	41.82%
HUBS	70 Outperform	$12.27B	267.36	2.31%	―	19.21%	75.32%
GWRE	65 Neutral	$10.89B	121.52	6.57%	―	22.80%	198.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
U	54 Neutral	$7.92B	-19.13	-12.53%	―	-8.23%	48.57%

PTC Corporate Events

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.

PTC Announces New CFO Appointment Effective January 2026

PTC Inc. announced the appointment of Jennifer DiRico as the new Executive Vice President and Chief Financial Officer, effective January 1, 2026. DiRico, who previously held leadership roles at Commvault Systems and Toast, Inc., will succeed Kristian Talvitie, whose departure is not due to any disagreements with the company. PTC also reaffirmed its financial guidance for the fiscal year ending September 30, 2026, amidst various risks and uncertainties that could impact its financial performance.

The most recent analyst rating on (PTC) stock is a Buy with a $197.00 price target. To see the full list of analyst forecasts on PTC stock, see the PTC Stock Forecast page.