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PTC
(NASDAQ:PTC)
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Rating:74Outperform
Price Target:
$133.00
▼(-4.82% Downside)
Action:Reiterated
Date:06/12/26
The score is driven primarily by strong financial performance (expanded profitability, improving leverage, and solid cash generation) and a positive earnings-call outlook (raised guidance and solid ARR/cash flow trends). These strengths are tempered by weak technicals (price below major moving averages with bearish momentum) and only moderate top-line growth, despite an undemanding P/E valuation.
Positive Factors
High profitability & margins
Sustained high gross and operating margins indicate strong pricing power, efficient software economics and scalable cost structure. This margin profile provides durable earnings resilience, funds R&D and buybacks, and reduces reliance on top-line volatility to sustain cash generation over multiple quarters.
Negative Factors
Slower top-line growth
Weak and uneven revenue growth raises sensitivity to margin maintenance: the company relies more on elevated margins and buybacks to drive EPS. If ARR or renewals underperform, sustaining margins alone may not offset slower organic expansion across product lines over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability & margins
Sustained high gross and operating margins indicate strong pricing power, efficient software economics and scalable cost structure. This margin profile provides durable earnings resilience, funds R&D and buybacks, and reduces reliance on top-line volatility to sustain cash generation over multiple quarters.
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.
Data provided by:
The Fly
The FlyPTC (PTC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.39B
Dividend YieldN/A
Average Volume (3M)1.91M
Price to Earnings (P/E)11.8
Beta (1Y)0.94
Revenue Growth27.75%
EPS Growth187.41%
CountryUS
Employees7,512
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)10.52
Shares Outstanding115,505,790
10 Day Avg. Volume2,531,611
30 Day Avg. Volume1,910,797
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 Cap1.00
Enterprise Value/Revenue4.82
Enterprise Value/Gross Profit5.72
Enterprise Value/Ebitda8.29
Forecast
1Y Price Target
$176.08Price Target Upside26.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
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 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 Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The call emphasized multiple positive operational and financial trends: ARR growth at the high end of guidance (8.5% YoY), 14% YoY cash flow growth, raised revenue and EPS guidance, aggressive share repurchases, and clear momentum from AI-driven modernization and product releases. Management highlighted measurable go-to-market improvements, higher-quality pipeline, and several displacement/customer wins across PLM, CAD, ALM and SLM. Offsetting these positives are familiar risks: macro uncertainty, comparability challenges from the divestiture, early-stage AI monetization (expected to ramp over time), and dependence on deferred ARR plus strong H2 execution to achieve full-year targets. Overall, the positives and concrete progress materially outweigh the listed risks, though several execution and macro caveats remain.Positive Updates
ARR Growth at High End of Guidance
Constant currency ARR (excl. Kepware and ThingWorx) reached $2.388 billion, up 8.5% year-over-year, reported at the high end of guidance.
Negative Updates
Macro Uncertainty and Approval Cycles
Management highlighted ongoing macro uncertainty and noted that complex customer approval cycles and legacy environments can slow adoption; deals still require lengthy approvals and executive sign-off in many cases.
Read all updates
Q2-2026 Updates
Positive
Negative
ARR Growth at High End of Guidance
Constant currency ARR (excl. Kepware and ThingWorx) reached $2.388 billion, up 8.5% year-over-year, reported at the high end of guidance.
Read all positive updates
Company Guidance
PTC reiterated and sharpened FY‑26 targets: constant‑currency ARR (ex‑Kepware/ThingWorx) was $2.388B at the end of Q2 (up 8.5% YoY) and management expects FY‑26 ARR growth of ~7.5%–9.5% (midpoint implying ~$195M net new ARR), with Q3 ARR growth of ~8%–9% (net new ARR $40M–$55M) and a meaningful step‑up in deferred ARR expected in Q4; FY‑26 free cash flow is guided to $850M (or $950M excluding four one‑time items that net to a $100M FY‑26 impact), Q3 FCF $240M–$245M, revenue raised to $2.58B–$2.82B and non‑GAAP EPS to $6.65–$8.90. Operationally Q2 operating cash flow and free cash flow each grew 14% YoY, and capital return plans include $250M repurchased in Q2, $375M net after‑tax divestiture proceeds deployed into an ASR, roughly $250M planned repurchases in Q3, expected FY repurchases of ~$1.225B–$1.325B, an anticipated diluted share count of ~115–116M (versus 120M in Q3 ’25), and a new $2B buyback authorization effective Oct 1, 2026 through FY‑28.PTC Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.00B | 2.74B | 2.30B | 2.10B | 1.93B | 1.81B |
| Gross Profit | 2.53B | 2.29B | 1.85B | 1.66B | 1.55B | 1.44B |
| EBITDA | 1.74B | 1.13B | 730.02M | 599.14M | 573.41M | 564.77M |
| Net Income | 1.25B | 734.00M | 376.33M | 245.54M | 313.08M | 476.92M |
Balance Sheet | ||||||
| Total Assets | 6.54B | 6.62B | 6.38B | 6.29B | 4.69B | 4.51B |
| Cash, Cash Equivalents and Short-Term Investments | 439.11M | 184.41M | 265.81M | 288.10M | 272.18M | 326.53M |
| Total Debt | 1.38B | 1.37B | 1.93B | 1.89B | 1.54B | 1.65B |
| Total Liabilities | 2.68B | 2.79B | 3.17B | 3.61B | 2.39B | 2.47B |
| Stockholders Equity | 3.86B | 3.83B | 3.21B | 2.68B | 2.30B | 2.04B |
Cash Flow | ||||||
| Free Cash Flow | 928.18M | 856.69M | 731.62M | 586.25M | 409.38M | 343.55M |
| Operating Cash Flow | 938.62M | 867.70M | 749.98M | 610.86M | 435.33M | 368.81M |
| Investing Cash Flow | 510.78M | -17.54M | -124.81M | -866.12M | -201.20M | -687.86M |
| Financing Cash Flow | -1.24B | -929.26M | -650.73M | 268.31M | -264.08M | 370.26M |
PTC Technical Analysis
Neutral
139.74
Price Trends
133.22
Negative
141.58
Negative
161.98
Negative
Market Momentum
-5.25
Negative
50.51
Neutral
69.75
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 above the 20-day moving average (MA) of 121.05, above the 50-day MA of 133.22, and below the 200-day MA of 161.98, indicating a neutral trend. The MACD of -5.25 indicates Negative momentum. The RSI at 50.51 is Neutral, neither overbought nor oversold. The STOCH value of 69.75 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 | $13.41B | 43.34 | 8.71% | ― | 8.68% | 8.27% | |
74 Outperform | $14.39B | 11.84 | 33.14% | ― | 27.75% | 187.41% | |
73 Outperform | $8.98B | 21.46 | 16.91% | ― | 15.55% | 6.91% | |
72 Outperform | $9.84B | 100.68 | 5.02% | ― | 21.05% | ― | |
67 Neutral | $11.20B | 71.15 | 10.99% | ― | 24.92% | 356.37% | |
64 Neutral | $12.80B | -18.68 | -21.33% | ― | 7.55% | -39.50% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
PTC
PTC
124.55
-50.27
-28.76%
GWRE
Guidewire
134.47
-99.12
-42.43%
TYL
Tyler Technologies
318.10
-271.59
-46.06%
HUBS
HubSpot
192.12
-363.46
-65.42%
TTD
Trade Desk
19.10
-54.46
-74.03%
U
Unity Software
29.32
1.46
5.24%
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...
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...
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.