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Gross Margin by Segment
Analyzes profitability margins within each business segment, offering a clear view of operational efficiency and pricing power.PTC’s gross-margin picture is bifurcated: License margins are exceptionally high and have firmed, delivering significant profitability leverage, while Support & Cloud Services sustains steady, SaaS-like margins. The wild card is Professional Services—its volatility and recent negative results, tied to ServiceMax digestion and implementation costs, can materially pull down consolidated margins and slow ARR-to-cash conversion. Management cites improving pipeline, AI-driven product wins, and deferred-ARR strength; if services margins normalize, upside to FCF and EPS is credible, but execution risk remains the key swing factor.
Date | License | Support and Cloud Services | Professional Services |
|---|---|---|---|
Mar 31, 2026 | 97.00 | 80.00 | -3.00 |
Dec 31, 2025 | 95.00 | 80.00 | -10.00 |
Sep 30, 2025 | 97.00 | 80.00 | -9.00 |
Jun 30, 2025 | 95.00 | 80.00 | -9.00 |
Mar 31, 2025 | 96.00 | 80.00 | 14.00 |
Dec 31, 2024 | 94.00 | 80.00 | 4.00 |
Sep 30, 2024 | 94.00 | 80.00 | 16.00 |
Jun 30, 2024 | 92.00 | 79.00 | 1.00 |
Mar 31, 2024 | 95.00 | 80.00 | 1.00 |
Dec 31, 2023 | 94.00 | 80.00 | 9.00 |