PTC (PTC) AI Stock Analysis

• Market Cap: $20.82B
• Dividend Yield: N/A
• Average Volume (3M): 978.62K
• Price to Earnings (P/E): 28.6
• 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: 119,448,260
• 10 Day Avg. Volume: 1,002,220
• 30 Day Avg. Volume: 978,615
• PEG Ratio: 0.34
• Price to Book (P/B): 6.36
• Price to Sales (P/S): 8.89
• P/FCF Ratio: 28.44
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 9.38
• Enterprise Value/Gross Profit: 11.25
• Enterprise Value/Ebitda: 22.83
• 1Y Price Target: $218.00
• Price Target Upside: 24.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 7.8
• Revenue Forecast (FY): $2.79B

• Rating: 73 Outperform
• Price Target: $194.00 ▲(10.66% Upside)

PTC's strong financial performance and positive earnings call outlook are significant strengths, contributing to a solid overall score. However, technical analysis indicates potential bearish momentum, and valuation metrics suggest the stock may be overvalued. The strategic divestiture and board appointment are positive, but concerns about macroeconomic conditions and divestiture impacts slightly temper the outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for PTC's software solutions, enhancing its market position and supporting long-term business expansion.

Cash Flow Strength

Strong cash flow generation supports future investments and shareholder returns, providing financial stability and growth potential.

Strategic Divestiture

The divestiture allows PTC to focus on its core Intelligent Product Lifecycle vision, potentially enhancing operational efficiency and strategic focus.

Negative Factors

Potential Disruption from Divestiture

The divestiture could lead to customer uncertainty and impact fiscal '26 performance, posing a risk to revenue stability and customer retention.

Macro Environment Concerns

Economic uncertainties could affect PTC's growth projections, impacting revenue and profitability if market conditions deteriorate.

Kepware and ThingWorx ARR Decline

Declining ARR for these segments indicates challenges in maintaining growth, which could affect overall revenue performance.

PTC Business Overview & Revenue Model

Company Description

PTC Inc. is a global technology company specializing in software solutions for product development, including computer-aided design (CAD), product lifecycle management (PLM), and Internet of Things (IoT) technologies. Founded in 1985 and headquartered in Needham, Massachusetts, PTC serves various industries such as manufacturing, aerospace, automotive, and electronics, offering innovative tools that enhance product design, development, and service management.

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

PTC demonstrates strong financial performance with robust revenue growth, high profitability, and efficient cash flow management. The company's stable balance sheet and effective leverage management further enhance its financial health, positioning it well for future growth in the competitive software application industry.

Income Statement

PTC has demonstrated strong revenue growth with a 10.81% increase in the latest year, indicating robust demand for its software solutions. The company maintains high profitability with a gross profit margin of 82.08% and a net profit margin of 27.05%, reflecting efficient cost management and strong pricing power. EBIT and EBITDA margins are also healthy at 33.93% and 38.88%, respectively, showcasing operational efficiency.

Balance Sheet

PTC's balance sheet shows a solid financial position with a debt-to-equity ratio of 0.36, indicating manageable leverage. The return on equity is strong at 19.33%, suggesting effective use of shareholder funds to generate profits. The equity ratio of 57.82% highlights a stable capital structure with a significant portion of assets financed by equity.

Cash Flow

The company exhibits strong cash flow performance with a free cash flow growth rate of 28.8%, indicating improved cash generation capabilities. The operating cash flow to net income ratio of 0.70 and free cash flow to net income ratio of 0.99 suggest efficient conversion of earnings into cash, supporting future investments and shareholder returns.

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	2.28B	2.25B	1.85B	1.66B	1.55B	1.44B
EBITDA	1.12B	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	4.51B
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	731.62M	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	-866.12M	-201.20M	-687.86M
Financing Cash Flow	-929.26M	-929.26M	-650.73M	268.31M	-264.08M	370.26M

PTC Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 175.31
• 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 Neutral. The current price of 175.31 is above the 20-day moving average (MA) of 174.68, below the 50-day MA of 185.25, and below the 200-day MA of 181.93, indicating a neutral trend. The MACD of -2.18 indicates Negative momentum. The RSI at 45.65 is Neutral, neither overbought nor oversold. The STOCH value of 38.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PTC.

PTC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PTC	73 Outperform	$20.82B	28.56	21.05%	―	19.18%	96.62%
TTD	70 Outperform	$17.72B	42.41	16.78%	―	20.82%	41.82%
TYL	66 Neutral	$19.37B	62.84	9.17%	―	10.62%	31.43%
GWRE	66 Neutral	$16.46B	183.91	6.57%	―	22.80%	198.93%
U	65 Neutral	$19.07B	―	-13.64%	―	-8.23%	48.57%
HUBS	65 Neutral	$19.40B	-5,576.69	-0.20%	―	19.21%	75.32%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

PTC Corporate Events

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.

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.

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.