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

PTC (NASDAQ:PTC) issued its quarterly 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. The company had revenue of $600.05 million for the quarter, compared to the consensus estimate of $611.62 million. PTC had a net margin of 41.81% and a return on equity of 25.84%. PTC’s quarterly revenue was down 6.8% on a year-over-year basis. During the same quarter in the prior year, the company 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 Price Performance

Shares of NASDAQ:PTC traded up $2.64 during trading on Thursday, reaching $135.10. The stock had a trading volume of 1,348,383 shares, compared to its average volume of 1,430,850. 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 has a 1-year low of $108.50 and a 1-year high of $219.69. The stock has a market cap of $15.60 billion, a PE ratio of 12.91, a PEG ratio of 1.86 and a beta of 0.99. The business has a fifty day moving average price of $126.29 and a 200-day moving average price of $142.17.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on PTC shares. BMO Capital Markets lifted their price objective on PTC from $155.00 to $164.00 and gave the company an “outperform” rating in a research note on Thursday. Robert W. Baird set a $198.00 target price on shares of PTC in a research note on Thursday, May 7th. Citigroup raised their price target on shares of PTC from $146.00 to $155.00 and gave the company a “neutral” rating in a research report on Friday, May 8th. Piper Sandler lowered their target price on shares of PTC from $175.00 to $157.00 and set a “neutral” rating on the stock in a research note on Thursday. Finally, Barclays lifted their price target on PTC from $150.00 to $155.00 and gave the company an “overweight” rating in a research note on Thursday. Seven investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, PTC has an average rating of “Hold” and an average price target of $171.14.

Insiders Place Their Bets

In other PTC news, CAO Alice Christenson sold 816 shares of PTC stock in a transaction on 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 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 document filed with the SEC, which is available through this hyperlink. Insiders own 0.29% of the company’s stock.

Institutional Investors Weigh In On PTC

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Invesco Ltd. grew its holdings in shares of PTC by 26.8% during the 4th quarter. Invesco Ltd. now owns 1,710,141 shares of the technology company’s stock worth $297,924,000 after purchasing an additional 361,038 shares during the period. Corient Private Wealth LLC grew its position in shares of PTC by 139.3% during 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 in the last quarter. Mercer Global Advisors Inc. ADV increased its position in shares of PTC by 19.0% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 3,557 shares of the technology company’s stock valued at $620,000 after purchasing an additional 569 shares during the last quarter. Achmea Investment Management B.V. purchased a new stake in shares of PTC during the 4th quarter worth $1,848,000. Finally, Vident Advisory LLC increased its holdings in PTC by 14.0% in the fourth quarter. Vident Advisory LLC now owns 6,417 shares of the technology company’s stock valued at $1,118,000 after buying an additional 787 shares during the last quarter. Institutional investors and hedge funds own 95.14% of the company’s stock.

Key Stories Impacting PTC

Here are the key news stories impacting PTC this week:

• Positive Sentiment: PTC raised its fiscal 2026 revenue, adjusted EPS and ARR outlook, citing momentum in artificial-intelligence initiatives and its Intelligent Product Lifecycle strategy. Constant-currency ARR excluding divested businesses grew 9.1% year over year, above the company’s guidance range. PTC Q3 Earnings and Outlook Article
• Positive Sentiment: The company repurchased approximately $525 million of stock during the quarter, pushing fiscal-year buybacks above the high end of its target. Operating cash flow and free cash flow also exceeded quarterly guidance, supporting the bullish case for capital returns. PTC Third Fiscal Quarter 2026 Results
• Positive Sentiment: Rosenblatt Securities reaffirmed its “buy” rating and raised or maintained a $190 price target, implying substantial upside from recent trading levels. BMO Capital Markets also raised its target to $164 and retained an “outperform” rating. BMO Raises PTC Price Target
• Neutral Sentiment: Fiscal third-quarter adjusted EPS was $1.58, slightly ahead of the roughly $1.57 consensus, while revenue of $600.1 million fell short of the $611.6 million estimate and declined 6.8% year over year. The mixed results leave investors focused on whether ARR growth can offset weaker reported sales. PTC Q3 Earnings and Revenue Results
• Negative Sentiment: Piper Sandler lowered its price target from $175 to $157 and moved to a “neutral” rating, signaling concerns about near-term growth and the quarterly sales shortfall. Fourth-quarter EPS guidance also brackets the consensus estimate, adding some uncertainty to the immediate outlook. Piper Sandler PTC Rating Update

PTC Company Profile

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.