PTC (PTC)
NASDAQ:PTC
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PTC
(NASDAQ:PTC)
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Rating:71Outperform
Price Target:
$152.00
▲(8.77% Upside)
Action:ReiteratedDate: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 profitability and margins
Sustained, above-industry gross and operating margins indicate durable product differentiation and pricing power in industrial software. High margins support reinvestment in R&D, protect earnings through cycles, and enable consistent cash generation to fund strategy and shareholder returns over the medium term.
Negative Factors
Modest revenue growth
Revenue growth is steady but modest relative to high profitability, limiting long-term operating leverage upside. Slower top-line expansion increases reliance on margin stability and buybacks for returns, and makes achieving high long-term EPS growth more dependent on execution and inorganic moves.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and margins
Sustained, above-industry gross and operating margins indicate durable product differentiation and pricing power in industrial software. High margins support reinvestment in R&D, protect earnings through cycles, and enable consistent cash generation to fund strategy and shareholder returns over the medium term.
Read all positive factors
PTC (PTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.36B
Dividend YieldN/A
Average Volume (3M)1.07M
Price to Earnings (P/E)31.2
Beta (1Y)0.94
Revenue Growth23.62%
EPS Growth110.77%
CountryUS
Employees7,512
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.92
Shares Outstanding118,996,120
10 Day Avg. Volume1,206,592
30 Day Avg. Volume1,067,405
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 Cap1.08
Enterprise Value/Revenue6.19
Enterprise Value/Gross Profit7.34
Enterprise Value/Ebitda14.49
Forecast
1Y Price Target
$178.23Price Target Upside27.54% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)7.68
Revenue Forecast (FY)$2.69B
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 t...
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, a...
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.
Data provided by:
The Fly
The FlyPTC Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call emphasized multiple positive operating and financial developments — healthy ARR growth (9% ex-divestitures), 13% YoY free cash flow growth, raised revenue and EPS guidance, record deferred ARR and large deal activity, accelerating AI/product momentum, and an aggressive buyback program. Key concerns include ServiceMax churn carryover, back-end loaded ARR conversion timing (Q4 weighting) which creates short-term seasonality and implementation timing risk, and one-time divestiture costs and cash outflows. Overall, the positives around demand capture, cash generation, product/AI progress, and capital return outweigh the near-term timing and divestiture challenges.Positive Updates
Strong ARR Growth
Constant currency ARR excluding Kepware and ThingWorx reached $2.341B, up 9% year-over-year; including Kepware and ThingWorx ARR was $2.5B, up 8.4% year-over-year.
Negative Updates
ServiceMax Churn and Recovery Work
ServiceMax experienced residual churn that impacted recent quarters; management acknowledged remaining churn effects in Q1 and emphasized ongoing remediation efforts and the need for replication of recent green shoots.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong ARR Growth
Constant currency ARR excluding Kepware and ThingWorx reached $2.341B, up 9% year-over-year; including Kepware and ThingWorx ARR was $2.5B, up 8.4% year-over-year.
Read all positive updates
Company Guidance
PTC guided fiscal 2026 constant‑currency ARR growth of roughly 7.5%–9.5% excluding Kepware and ThingWorx (7%–9% including them), with Q2 ARR growth expected ~8%–8.5% (ex) / ~7.5%–8% (incl.), an illustrative annual net‑new ARR midpoint of $195M and Q2 sequential net‑new ARR of $35M–$50M (Q1 ARR was $2.341B ex / $2.5B incl., up 9% and 8.4% YoY). Cash and P&L guidance: Q1 free cash flow was $267M (up 13% YoY, including $10M divestiture costs); Q2 FCF guidance is $310M–$315M (includes ~ $5M divestiture costs); fiscal‑year FCF is expected to be ~ $1.0B. They raised revenue guidance to $2.675B–$2.94B and non‑GAAP EPS to $6.69–$9.15. Share repurchases: $200M bought in Q1, ~$250M planned in Q2, $150M–$250M planned per quarter in Q3–Q4, and roughly $1.1B–$1.3B of buybacks expected for the year after ~ $365M net after‑tax proceeds from the Kepware/ThingWorx divestiture (target close on or before April 1); total transaction‑related cash outflows this year are expected to be ~ $160M (nonrecurring).PTC Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
84
Very Positive
| 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
Neutral
139.74
Price Trends
150.51
Negative
160.48
Negative
180.41
Negative
Market Momentum
-4.27
Negative
42.25
Neutral
42.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PTC, the sentiment is Neutral. The current price of 139.74 is below the 20-day moving average (MA) of 141.11, below the 50-day MA of 150.51, and below the 200-day MA of 180.41, indicating a bearish trend. The MACD of -4.27 indicates Negative momentum. The RSI at 42.25 is Neutral, neither overbought nor oversold. The STOCH value of 42.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $15.11B | 61.99 | 8.71% | ― | 9.10% | 18.67% | |
74 Outperform | $11.60B | 41.10 | 16.89% | ― | 18.47% | 14.21% | |
72 Outperform | $11.79B | 49.66 | 12.92% | ― | 23.72% | ― | |
71 Outperform | $16.36B | 31.21 | 22.47% | ― | 23.62% | 110.77% | |
66 Neutral | $11.70B | 458.50 | 2.30% | ― | 19.16% | 881.78% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $11.39B | -46.16 | -12.57% | ― | 2.01% | 43.33% |
* Technology Sector Average
PTC
PTC
136.30
-20.04
-12.82%
GWRE
Guidewire
138.39
-66.22
-32.36%
TYL
Tyler Technologies
341.14
-198.46
-36.78%
HUBS
HubSpot
221.76
-402.29
-64.46%
TTD
Trade Desk
23.59
-29.47
-55.54%
U
Unity Software
26.42
5.23
24.68%
PTC Corporate Events
Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
PTC Divests IoT Units and Launches Major Buyback
Positive
Mar 16, 2026
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 Intellig...
Executive/Board ChangesShareholder Meetings
PTC Shareholders Approve Directors, Pay and Auditor Oversight
Positive
Feb 11, 2026
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&#...
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.