PTC (NASDAQ:PTC) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

PTC (NASDAQ:PTC) announced its quarterly earnings results on Wednesday. The technology company reported $1.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.57 by $0.01, FiscalAI reports. The firm had revenue of $600.05 million during the quarter, compared to the consensus estimate of $611.62 million. PTC had a return on equity of 24.69% and a net margin of 41.67%.The firm’s quarterly revenue was down 6.8% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.64 EPS. 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 Performance

Shares of PTC stock traded up $2.33 during trading on Friday, hitting $138.62. 884,177 shares of the stock were exchanged, compared to its average volume of 1,440,008. PTC has a 12 month low of $108.50 and a 12 month high of $219.69. The stock has a market cap of $16.01 billion, a PE ratio of 13.40, a P/E/G ratio of 1.94 and a beta of 0.99. The stock’s fifty day moving average is $126.10 and its 200 day moving average is $141.92. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.23 and a current ratio of 1.23.

PTC News Roundup

Here are the key news stories impacting PTC this week:

• Positive Sentiment: PTC reported constant-currency annual recurring revenue growth of 9.1% excluding divested businesses, above the high end of its target range. Management also cited momentum in artificial intelligence and its “Intelligent Product Lifecycle” strategy. PTC Announces Third Fiscal Quarter 2026 Results
• Positive Sentiment: The company raised its fiscal 2026 outlook for ARR, revenue and EPS while reaffirming cash-flow guidance. PTC also repurchased approximately $525 million of stock in the quarter and increased its fiscal-year repurchase target to about $1.625 billion, supporting per-share results. PTC Raises Outlook and Share Repurchase Target
• Positive Sentiment: Adjusted third-quarter EPS of $1.58 slightly exceeded the roughly $1.57 consensus estimate. Analysts at BMO Capital Markets and Rosenblatt Securities raised or maintained favorable views, with price targets of $164 and $190, respectively.
• Neutral Sentiment: Management’s earnings call emphasized AI-related product opportunities and growth initiatives, but investors will likely seek evidence that these efforts translate into faster revenue growth. PTC Earnings Call Highlights Growth and AI Momentum
• Negative Sentiment: Quarterly revenue of approximately $600 million missed the $611.6 million consensus estimate and fell 6.8% year over year. Earnings were also below the prior-year level, while fourth-quarter EPS guidance includes a low end below analysts’ expectations. Piper Sandler consequently cut its price target to $157 and kept a neutral rating.
• Neutral Sentiment: PTC announced an exclusive sponsorship of Pacific Women in Telco, a positive industry and inclusion initiative but one unlikely to materially affect near-term financial results. PTC Announces Exclusive Sponsorship

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on PTC. BNP Paribas Exane started coverage on shares of PTC in a research report on Thursday, June 18th. They issued a “neutral” rating and a $130.00 price objective for the company. Wall Street Zen lowered shares of PTC from a “buy” rating to a “hold” rating in a report on Saturday, June 27th. Barclays increased their price target on shares of PTC from $150.00 to $155.00 and gave the stock an “overweight” rating in a research report on Thursday. BMO Capital Markets boosted their price objective on PTC from $155.00 to $164.00 and gave the company an “outperform” rating in a report on Thursday. Finally, Rosenblatt Securities restated a “buy” rating and set a $190.00 price objective on shares of PTC in a research note on Thursday. Seven analysts have rated the stock with a Buy rating, six have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, PTC currently has a consensus rating of “Hold” and a consensus target price of $171.14.

Insider Activity at PTC

In other PTC news, CAO Alice Christenson sold 816 shares of the company’s stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $145.82, for a total value of $118,989.12. Following the completion of the sale, the chief accounting officer directly owned 1,265 shares of the company’s stock, valued at approximately $184,462.30. This represents a 39.21% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.29% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in PTC. Invesco Ltd. boosted its position in shares of PTC by 26.8% in the 4th quarter. Invesco Ltd. now owns 1,710,141 shares of the technology company’s stock valued at $297,924,000 after purchasing an additional 361,038 shares during the period. Corient Private Wealth LLC boosted its holdings in shares of PTC by 139.3% in the fourth quarter. Corient Private Wealth LLC now owns 18,416 shares of the technology company’s stock worth $3,208,000 after buying an additional 10,719 shares during the period. Mercer Global Advisors Inc. ADV boosted its holdings in shares of PTC by 19.0% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 3,557 shares of the technology company’s stock worth $620,000 after buying an additional 569 shares during the period. Achmea Investment Management B.V. purchased a new position in shares of PTC in the fourth quarter worth approximately $1,848,000. Finally, Vident Advisory LLC raised its holdings in shares of PTC by 14.0% during the fourth quarter. Vident Advisory LLC now owns 6,417 shares of the technology company’s stock valued at $1,118,000 after acquiring an additional 787 shares during the period. Institutional investors and hedge funds own 95.14% of the company’s stock.

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.