PTC (PTC) AI Stock Analysis

PTC

(BMV:PTC)

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Positive Factors

Recurring Software Revenue ModelPTC's subscription-led software model produces recurring fees from CAD, PLM, industrial IoT and AR, while renewals and expansion within existing accounts can deepen customer relationships. This revenue architecture supports visibility and cross-selling across the engineering-to-service workflow.

Negative Factors

Soft Recent Revenue GrowthNegative TTM revenue growth indicates that PTC's strong margin expansion has not yet been matched by sustained top-line expansion. If this persists, it could constrain operating leverage, reduce the pace of new customer and account growth, and make future earnings increasingly dependent on efficiency gains.

PTC (PTC) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 21.24B
Dividend Yield: ―
Average Volume (3M): 324
Price to Earnings (P/E): 18.8
Beta (1Y): 0.06
Revenue Growth: 9.15%
EPS Growth: 121.25%
Country: Mexico
Employees: 7,000
Sector: Technology
Sector Strength: 61
Industry: Software - Application

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 Profe...

PTC Earnings Call Summary

Earnings Call Date:Jul 28, 2026(Q3-2026)|% Change Since:85.72%|Next Earnings Date:Nov 03, 2026

Earnings Call SentimentPositive

The call emphasized strong operating performance: Q3 beat key metrics (net new ARR, ARR growth, operating and free cash flow), aggressive share repurchases, raised guidance, and clear momentum in AI product adoption and go-to-market transformation. Key positives include $60M net new ARR in Q3, ARR up 9.1% YoY (ex. divestitures), outsized share buybacks, and a growing deferred ARR balance (roughly 2x year-ago). Lowlights are manageable and execution-linked: Q3 revenue missed the midpoint ($600M) due to timing of one large contract, Q4 free cash flow is pressured by divestiture-related capital gains outflows (~$15M), AI monetization is expected to scale over the medium-to-long term (pilots then scale), and comparative reporting is complicated by the Kepware/ThingWorx divestiture. Overall, the positives and raised guidance outweigh the noted risks, but outcomes remain execution-dependent heading into Q4 and FY '27.

Positive Updates

Net New ARR and ARR Growth

Generated $60 million of net new ARR in Q3; constant-currency ARR (ex. Kepware & ThingWorx) of $2.448 billion, up 9.1% year-over-year and above the high end of guidance.

Negative Updates

Q3 Revenue Miss vs Guide Midpoint

Q3 revenue of $600 million was below the midpoint of guidance; management attributed the shortfall to the shortened duration of a single large contract expansion.

Company Guidance

PTC raised and tightened its fiscal 2026 outlook, increasing the midpoint of annual ARR growth to 9.25% (guiding constant‑currency ARR ex‑Kepware/ThingWorx to ~9.0–9.5%) with a fiscal‑year net new ARR midpoint of $214M and an expected Q4 net new ARR range of $79–92M after generating $60M of net new ARR in Q3; Q3 constant‑currency ARR was $2.448B, up 9.1% Y/Y (ex‑Kepware/ThingWorx), Q3 operating cash flow was $261M and free cash flow was $249M (both above guidance), and management now expects full‑year free cash flow of ~ $850M with Q4 FCF of ~ $15M; revenue guidance was raised to $2.69–2.75B and non‑GAAP EPS to $7.87–8.42; capital return activity included $525M of repurchases in Q3 and an increased full‑year repurchase plan of ~$1.625B (vs. prior $1.225–1.325B), reducing diluted shares to ~115M in Q3 and a projected ~116M for the full year (vs. 121M in FY25).

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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MX:PTC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DT	76Outperform	$16.67B	113.47	5.72%	―	17.94%	-69.28%
TTAN	75Outperform	$8.13B	-61.50	-8.33%	―	22.90%	61.40%
BSY	73Outperform	$12.36B	44.46	24.10%	0.68%	12.85%	14.73%
U	72Outperform	$16.59B	-27.72	-18.85%	―	13.98%	-27.86%
PCOR	64Neutral	$9.33B	-235.53	-3.13%	―	15.41%	73.03%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

MX:PTC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:PTC	PTC Inc.	3629.00	-114.49	-3.06%
DT	Dynatrace	57.69	8.06	16.24%
U	Unity Software, Inc.	37.70	1.83	5.10%
BSY	Bentley Systems, Class B	40.90	-7.68	-15.81%
PCOR	Procore Technologies Inc	61.38	-9.31	-13.17%
TTAN	ServiceTitan, Inc. Class A	84.26	-7.87	-8.54%

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.

PTC AI Stock Analysis