PTC (NASDAQ:PTC) Announces Quarterly Earnings Results

PTC (NASDAQ:PTC) posted its earnings results on Wednesday. The technology company reported $1.58 earnings per share for the quarter, topping the consensus estimate of $1.57 by $0.01, FiscalAI reports. PTC had a net margin of 41.81% and a return on equity of 25.84%. The company had revenue of $600.05 million for the quarter, compared to analyst estimates of $611.62 million. During the same period last year, the business posted $1.64 earnings per share. The business’s revenue for the quarter was down 6.8% compared to the same quarter last year. PTC updated its FY 2026 guidance to 7.870-8.420 EPS and its Q4 2026 guidance to 1.630-2.210 EPS.

Here are the key takeaways from PTC’s conference call:

• Q3 execution exceeded expectations, with $60 million in net new ARR and constant-currency ARR and free cash flow growth above the high end of guidance.
• PTC raised its fiscal 2026 constant-currency ARR growth guidance to approximately 9%–9.5%, increased revenue guidance to $2.69 billion–$2.75 billion, and lifted non-GAAP EPS guidance to $7.87–$8.42.
• AI momentum is building, including PTC’s largest AI deal to date—a near-seven-figure ServiceMax AI contract—and rising customer demand for PTC’s governed product-data systems as a foundation for enterprise AI.
• The company repurchased $525 million of stock in Q3 and now expects approximately $1.625 billion of fiscal 2026 repurchases, reducing the expected full-year diluted share count to about 116 million.
• Q4 free cash flow is expected to be only approximately $15 million, reflecting capital-gains-related cash outflows from the Kepware and ThingWorx divestiture; management also emphasized that delivering the expected Q4 ARR step-up still depends on execution.

PTC Stock Up 3.9%

PTC traded up $4.95 during trading hours on Wednesday, hitting $132.46. 2,884,147 shares of the company’s stock were exchanged, compared to its average volume of 1,431,705. The stock has a market cap of $15.30 billion, a price-to-earnings ratio of 12.64, a PEG ratio of 1.83 and a beta of 0.99. PTC has a 1-year low of $108.50 and a 1-year high of $219.69. The stock’s 50-day moving average is $126.29 and its two-hundred day moving average is $142.17. The company has a quick ratio of 1.23, a current ratio of 1.23 and a debt-to-equity ratio of 0.30.

Trending Headlines about PTC

Here are the key news stories impacting PTC this week:

• Positive Sentiment: PTC raised its fiscal 2026 outlook for annual recurring revenue, revenue and earnings per share while reaffirming cash-flow guidance. The company reported constant-currency ARR growth of 9.1% excluding divested businesses, above the high end of its prior target. PTC Announces Third Fiscal Quarter 2026 Results
• Positive Sentiment: PTC generated $260.6 million in operating cash flow and $249.3 million in free cash flow during the quarter, with growth exceeding management’s guidance ranges. It also repurchased approximately $525 million of stock, bringing fiscal-year buybacks above the high end of its target and potentially supporting per-share results. PTC Q3 Revenue Falls 7 Percent as EPS Reaches $1.03
• Neutral Sentiment: Fiscal third-quarter adjusted earnings were reported at $1.58 per share, essentially in line with some analyst estimates but below the $1.60 Zacks consensus. Revenue of approximately $600.0 million missed the $611.6 million consensus estimate. PTC Inc. Q3 Earnings and Revenues Miss Estimates
• Negative Sentiment: Quarterly revenue declined about 7% year over year to $600 million, while net income fell from $141.3 million to $118.8 million. The weaker reported results and lower-than-expected fourth-quarter EPS outlook could limit upside, although the full-year guidance increase is the more favorable signal for investors. PTC Q3 Revenue Falls 7 Percent as EPS Reaches $1.03

Insider Transactions at PTC

In other PTC news, CAO Alice Christenson sold 816 shares of the business’s stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $145.82, for a total transaction of $118,989.12. Following the sale, the chief accounting officer directly owned 1,265 shares of the company’s stock, valued at $184,462.30. The trade was a 39.21% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Insiders own 0.29% of the company’s stock.

Institutional Trading of PTC

Several institutional investors and hedge funds have recently bought and sold shares of PTC. EFG International AG bought a new stake in shares of PTC during the 4th quarter worth approximately $191,000. Smartleaf Asset Management LLC lifted its stake in PTC by 18.7% in the fourth quarter. Smartleaf Asset Management LLC now owns 973 shares of the technology company’s stock valued at $171,000 after acquiring an additional 153 shares during the last quarter. Brown Brothers Harriman & Co. grew its position in shares of PTC by 32.9% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 829 shares of the technology company’s stock valued at $168,000 after acquiring an additional 205 shares during the period. M&G PLC acquired a new position in shares of PTC during the 4th quarter worth about $143,000. Finally, EverSource Wealth Advisors LLC raised its holdings in shares of PTC by 68.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 705 shares of the technology company’s stock valued at $121,000 after purchasing an additional 287 shares during the period. Institutional investors own 95.14% of the company’s stock.

Wall Street Analyst Weigh In

PTC has been the subject of several research reports. Rosenblatt Securities reissued a “buy” rating and set a $190.00 price objective on shares of PTC in a research report on Tuesday, May 5th. Robert W. Baird set a $198.00 price objective on shares of PTC in a research report on Thursday, May 7th. Wall Street Zen lowered shares of PTC from a “buy” rating to a “hold” rating in a research note on Saturday, June 27th. BNP Paribas Exane initiated coverage on PTC in a report on Thursday, June 18th. They set a “neutral” rating and a $130.00 target price for the company. Finally, Berenberg Bank set a $170.00 price target on PTC in a research note on Wednesday, May 27th. Seven analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $172.50.

About PTC

PTC Inc (NASDAQ: PTC) is a global technology company that develops software and services to help manufacturers design, operate, and service physical products. Founded in 1985 as Parametric Technology Corporation, PTC pioneered parametric, feature-based CAD with its Pro/ENGINEER product (now marketed as Creo) and has since expanded its portfolio to address product lifecycle management, Internet of Things (IoT), augmented reality (AR) and industrial connectivity.

Key product lines include Creo for 3D CAD; Windchill for product lifecycle management (PLM); ThingWorx, an IoT platform for connecting devices and building industrial applications; Vuforia, an AR platform for creating immersive service and training experiences; and Kepware, a suite for industrial connectivity and protocol translation.