olivLaw · US equity research
PTC Inc. PTC
Services-Prepackaged Software · SIC 7372 · Vertical: Services-Prepackaged Software (SIC 7372)
PTC Inc. is a global software company headquartered in Boston, focused on product lifecycle management (PLM) and CAD software. Revenue grew 19% in fiscal 2025 to 2,739.2 million USD, and ARR reached 2.48 billion USD. In the third fiscal quarter of 2026 revenue fell 7%, largely due to the divestiture of Kepware and ThingWorx, while ARR was broadly flat.
At the close of 03 Nov 2026, PTC Inc. (PTC) stock was 194.06 USD (−0.13% on the day), with market capitalisation 21.1 bn USD, P/E 18.9 on diluted EPS of 10.28 USD over the last 12 months, beta 0.85, 52-week range 112.33–195.54 USD. Latest reported quarter (Q3 2026): revenue of 600.0 m USD (−6.8% YoY), net income of 118.8 m USD (−16.0% YoY), diluted EPS 1.03 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 74.4
- overbought (≥ 70)
- Bollinger (20, 2)
- 192.75 – 195.35
- in the upper half of the band · %B 0.50 · band width 1.3%
- SMA 50 / 200
- 164.51 / 147.36
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 8.75 / 10.57
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +34.7% | −2.0% | +36.7 pp | — |
| 3 months | +37.0% | −2.2% | +39.1 pp | — |
| 6 months | +41.1% | +4.3% | +36.8 pp | — |
| Year to date | +11.4% | +10.6% | +0.8 pp | — |
| 1 year | −1.2% | +10.5% | −11.6 pp | −4.8% |
| 3 years | +31.6% | +73.7% | −42.1 pp | +18.5% |
| 5 years | +60.5% | +61.7% | −1.3 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 626.5 m | 565.1 m | 636.4 m | 643.9 m | 893.8 m | 685.8 m | 774.3 m | 600.0 m |
| Cost of revenue | 112.8 m | 111.8 m | 106.3 m | 110.0 m | 116.9 m | 117.7 m | 113.6 m | 109.6 m |
| Gross profit | 513.7 m | 453.3 m | 530.1 m | 533.9 m | 776.9 m | 568.1 m | 660.7 m | 490.5 m |
| Research & development | 110.0 m | 115.5 m | 111.0 m | 116.6 m | 114.5 m | 120.0 m | 124.1 m | 115.7 m |
| Operating income | 194.0 m | 115.5 m | 223.5 m | 209.8 m | 433.6 m | 221.1 m | 295.8 m | 166.5 m |
| Depreciation & amortisation | 26.8 m | 25.8 m | 25.4 m ≈ | 25.5 m ≈ | 25.7 m | 25.3 m | 24.7 m ≈ | 24.2 m ≈ |
| Interest expense | 24.9 m | 22.0 m | 19.6 m | 18.4 m | 17.0 m | 17.3 m | 15.3 m | 15.8 m |
| Pre-tax income | 170.2 m | 93.2 m | 205.2 m | 193.7 m | 428.1 m | 203.0 m | 746.8 m | 152.4 m |
| Income tax | 43.7 m | 10.9 m | 42.6 m | 52.3 m | 80.3 m | 36.5 m | 156.1 m | 33.7 m |
| Net income | 126.5 m | 82.2 m | 162.6 m | 141.3 m | 347.8 m | 166.5 m | 590.7 m | 118.8 m |
| Diluted EPS | 1.04 ≈ | 0.68 | 1.35 | 1.17 | 2.88 ≈ | 1.39 | 4.98 | 1.03 |
| Operating cash flow | 98.1 m | 238.4 m | 281.3 m ≈ | 243.9 m ≈ | 104.0 m | 269.7 m | 320.9 m ≈ | 260.6 m ≈ |
| Capex | 4.5 m | 2.8 m | 2.8 m ≈ | 1.9 m ≈ | 3.5 m | 2.3 m | 2.7 m ≈ | 11.3 m ≈ |
| Share repurchases | 0 | 75.0 m | 75.0 m ≈ | 75.0 m ≈ | 75.0 m | 200.0 m | 626.1 m ≈ | 500.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 6 percentile of its own 33-quarter history (min 11.0, median 69.1, max 1,527.8; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.2 bn | 1.3 bn | 1.5 bn | 1.8 bn | 1.9 bn | 2.1 bn | 2.3 bn | 2.7 bn |
| Revenue YoY | +6.7% | +1.1% | +16.1% | +23.9% | +7.0% | +8.5% | +9.6% | +19.2% |
| Net income | 52.0 m | -27.5 m | 130.7 m | 476.9 m | 313.1 m | 245.5 m | 376.3 m | 734.0 m |
| Net income YoY | +733.3% | −152.8% | unavailable | +264.9% | −34.4% | −21.6% | +53.3% | +95.0% |
| Diluted EPS | 0.44 | -0.23 | 1.12 | 4.03 | 2.65 | 2.06 | 3.12 | 6.08 |
| Diluted EPS YoY | +780.0% | −152.3% | unavailable | +259.8% | −34.2% | −22.3% | +51.5% | +94.9% |
| net % | 4.2% | -2.2% | 9.0% | 26.4% | 16.2% | 11.7% | 16.4% | 26.8% |
| Free cash flow | 211.7 m | 220.7 m | 213.6 m | 344.1 m | 415.8 m | 587.0 m | 735.6 m | 856.7 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 30 Sept 2025
- Cash
- 184.4 m USD
- Financial debt
- 1.2 bn USD
- Net debt
- 1.0 bn USD
- Equity
- 3.8 bn USD
- Total assets
- 6.6 bn USD
- Debt / equity
- 0.31x
- Current ratio
- 1.12x
- ROE
- 20.9%
- ROA
- 11.3%
- FCF margin
- 31.3%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.5 bn | 1.8 bn | 1.9 bn | 2.1 bn | 2.3 bn | 2.7 bn | SEC (XBRL)· 21 Nov 2025verified |
| Cost of revenue | 334.3 m | 371.1 m | 386.0 m | 441.0 m | 444.8 m | 445.0 m | SEC (XBRL)· 21 Nov 2025verified |
| Gross profit | 1.1 bn | 1.4 bn | 1.5 bn | 1.7 bn | 1.9 bn | 2.3 bn | SEC (XBRL)· 21 Nov 2025verified |
| Research & development | 256.6 m | 299.9 m | 338.8 m | 394.4 m | 433.0 m | 457.7 m | SEC (XBRL)· 21 Nov 2025verified |
| Operating income | 210.9 m | 380.7 m | 447.4 m | 458.5 m | 588.1 m | 982.4 m | SEC (XBRL)· 21 Nov 2025verified |
| Depreciation & amortisation | 80.8 m | 85.2 m | 87.7 m | 104.8 m | 108.1 m | 102.5 m | SEC (XBRL)· 21 Nov 2025verified |
| EBITDA | 291.7 m ≈ | 466.0 m ≈ | 535.1 m ≈ | 563.2 m ≈ | 696.2 m ≈ | 1.1 bn ≈ | SEC (XBRL)· 21 Nov 2025derived |
| Interest expense | 76.4 m | 50.5 m | 54.3 m | 129.4 m | 119.7 m | 77.0 m | SEC (XBRL)· 21 Nov 2025verified |
| Pre-tax income | 134.7 m | 391.8 m | 397.1 m | 332.6 m | 469.0 m | 920.2 m | SEC (XBRL)· 21 Nov 2025verified |
| Income tax | 4.0 m | -85.2 m | 84.0 m | 87.0 m | 92.6 m | 186.2 m | SEC (XBRL)· 21 Nov 2025verified |
| Net income | 130.7 m | 476.9 m | 313.1 m | 245.5 m | 376.3 m | 734.0 m | SEC (XBRL)· 21 Nov 2025verified |
| Diluted EPS | 1.12 | 4.03 | 2.65 | 2.06 | 3.12 | 6.08 | SEC (XBRL)· 21 Nov 2025verified |
| Weighted average diluted shares | 116.3 m | 118.4 m | 118.2 m | 119.3 m | 120.7 m | 120.8 m | SEC (XBRL)· 21 Nov 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 275.5 m | 326.5 m | 272.2 m | 288.1 m | 265.8 m | 184.4 m | SEC (XBRL)· 21 Nov 2025verified |
| Receivables | 415.2 m | 541.1 m | 636.6 m | 811.4 m | 862.0 m | 1.0 bn | SEC (XBRL)· 21 Nov 2025verified |
| Current assets | 833.4 m | 1.1 bn | 1.1 bn | 1.3 bn | 1.3 bn | 1.4 bn | SEC (XBRL)· 21 Nov 2025verified |
| Property, plant & equipment, net | 101.5 m | 100.2 m | 98.1 m | 88.4 m | 75.2 m | 60.8 m | SEC (XBRL)· 21 Nov 2025verified |
| Goodwill | 1.6 bn | 2.2 bn | 2.4 bn | 3.4 bn | 3.5 bn | 3.5 bn | SEC (XBRL)· 21 Nov 2025verified |
| Intangibles (excl. goodwill) | 237.6 m | 379.0 m | 382.7 m | 941.2 m | 897.5 m | 824.7 m | SEC (XBRL)· 21 Nov 2025verified |
| Total assets | 3.4 bn | 4.5 bn | 4.7 bn | 6.3 bn | 6.4 bn | 6.6 bn | SEC (XBRL)· 21 Nov 2025verified |
| Accounts payable | 24.9 m | 33.4 m | 40.2 m | 43.5 m | 24.2 m | 11.5 m | SEC (XBRL)· 21 Nov 2025verified |
| Short-term debt | — | — | 0 | 9.4 m | 521.5 m | 25.0 m | SEC (XBRL)· 21 Nov 2025verified |
| Long-term debt | 1.0 bn | 1.4 bn | 1.4 bn | 1.7 bn | 1.2 bn | 1.2 bn | SEC (XBRL)· 21 Nov 2025verified |
| Current liabilities | 680.8 m | 779.3 m | 792.3 m | 1.7 bn | 1.7 bn | 1.2 bn | SEC (XBRL)· 21 Nov 2025verified |
| Total liabilities | 1.9 bn | 2.5 bn | 2.4 bn | 3.6 bn | 3.2 bn | 2.8 bn | SEC (XBRL)· 21 Nov 2025verified |
| Equity | 1.4 bn † | 2.0 bn † | 2.3 bn † | 2.7 bn † | 3.2 bn † | 3.8 bn † | SEC (XBRL)· 21 Nov 2025verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 233.8 m | 368.8 m | 435.3 m | 610.9 m | 750.0 m | 867.7 m | SEC (XBRL)· 21 Nov 2025verified |
| Capex | 20.2 m | 24.7 m | 19.5 m | 23.8 m | 14.4 m | 11.0 m | SEC (XBRL)· 21 Nov 2025verified |
| Free cash flow | 213.6 m ≈ | 344.1 m ≈ | 415.8 m ≈ | 587.0 m ≈ | 735.6 m ≈ | 856.7 m ≈ | SEC (XBRL)· 21 Nov 2025derived |
| Investing cash flow | -526.0 m | -687.9 m | -201.2 m | -866.1 m | -124.8 m | -38.3 m | SEC (XBRL)· 21 Nov 2025verified |
| Financing cash flow | 297.4 m | 370.3 m | -264.1 m | 268.3 m | -650.7 m | -908.5 m | SEC (XBRL)· 21 Nov 2025verified |
| Share repurchases | 0 | 30.0 m | 125.0 m | 0 | 0 | 300.0 m | SEC (XBRL)· 21 Nov 2025verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 67 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
03 Nov 2026Source: olivLaw, closing series
Market cap: 21.1 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet32
- Valuation55
- Quality100
- Growth57
- Returns100
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 110.81 – 287.76 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)136.94 – 218.20 (Mid 168.28)WACC 9.0% · starting FCFF 987.7 m USD · terminal value share of EV 74%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 18.7%
- Peers: EV/Sales110.81 – 172.31 (Mid 143.27)9 companies used · median multiple 5.6x · quartiles 4.4x – 6.7xADBE, ADSK, INTU, NOW, RBLX, SNPS, SSNC, TTWO, TWLO
- Peers: EV/EBITDA114.25 – 287.76 (Mid 185.04)4 companies used · median multiple 17.4x · quartiles 11.1x – 26.5xADBE, ADSK, SNPS, SSNC
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 67/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 84.5% | 100 (on a fixed band) | 11% |
| EBIT margin · Quality | 37.8% | 100 (vs peers) | 9% |
| FCF margin · Quality | 31.7% | 100 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | 12.3% | 49 (on a fixed band) | 17% |
| Revenue growth (YoY) · Growth | 19.2% | 74 (vs peers) | 9% |
| Net debt / EBITDA · Balance sheet | 0.9x | 50 (vs peers) | 6% |
| Current ratio · Balance sheet | 1.0x | 13 (on a fixed band) | 6% |
| EV/Sales · Valuation | 7.5x | 30 (vs peers) | 17% |
| FCF yield · Valuation | 4.4% | 89 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 6.7% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet32/100 · 2/2 factors with a value
- Growth57/100 · 2/2 factors with a value
- Quality100/100 · 3/3 factors with a value
- Returns100/100 · 1/1 factors with a value
- Valuation55/100 · 2/2 factors with a value
Memo
PTC Inc. (PTC). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 2.7 bn USD in 2025; YoY growth 19.2%; net margin 41.4%; ROE 35.1%; net debt/EBITDA 0.9x.
The estimated value range is 114.25–218.20 USD per share (median of 3 methods, agreement: high); assumptions are illustrative. Against the central value of 168.28 USD, the price of 194.06 USD leaves a potential of -13.3% (value / price − 1) and a margin of safety of -15.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 67/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Gross margin: 84.5%
- EBIT margin: 37.8%
- FCF margin: 31.7%
- Revenue growth (YoY): 19.2%
- FCF yield: 4.4%
- Shareholder yield (distributions): 6.7%
What contradicts it
- Current ratio: 1.0x
- EV/Sales: 7.5x
Versus the vertical median
Services-Prepackaged Software (SIC 7372) · same industry (4-digit SIC) · compared with 19 companies
Only companies with a capitalisation between 2.6 bn and 168.4 bn (within 8× of the company's); 202 of the vertical were left out.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| NOWServicenow, Inc. | 113.3 bn | 78.3 | 11.8% | 9.4% | +20.9% | −33% / −20% |
| SNOWSnowflake Inc. | 104.1 bn | — | -48.2% | -20.1% | +29.2% | +17% / +57% |
| ADBEAdobe Inc. | 95.8 bn | 13.7 | 61.9% | 28.0% | +10.5% | −23% / −60% |
| INTUIntuit Inc. | 92.1 bn | 20.9 | 23.6% | 21.3% | +13.9% | −46% / −40% |
| CDNSCadence Design Systems, Inc. | 88.8 bn | 64.3 | 22.9% | 22.5% | +14.1% | +4% / +18% |
| SNPSSynopsys Inc | 88.7 bn | 81.8 | 3.7% | 11.4% | +15.1% | +11% / −15% |
| ADSKAutodesk, Inc. | 52.7 bn | 32.7 | 53.9% | 21.1% | +17.5% | −17% / +16% |
| VEEVVeeva Systems Inc. | 49.1 bn | 49.6 | 14.4% | 29.3% | +16.3% | +26% / +74% |
| TTWOTake-Two Interactive Software, Inc. | 36.5 bn | — | -9.0% | -4.8% | +18.2% | −21% / +23% |
| TWLOTwilio Inc. | 33.1 bn | 26.9 | 14.9% | 21.8% | +13.7% | +65% / +231% |
| RBLXRoblox Corporation | 32.5 bn | — | -478.2% | -16.5% | +35.8% | −52% / +16% |
| MDBMongodb, Inc. | 27.0 bn | 458.7 | 2.0% | 2.1% | +22.8% | +1% / −19% |
| PTCPTC Inc. | 21.1 bn | 18.9 | 35.1% | 41.4% | +19.2% | −1% / +32% |
| SSNCSs&C Technologies Holdings, Inc. | 19.0 bn | 23.3 | 12.7% | 13.2% | +6.6% | −6% / +44% |
| UUnity Software Inc. | 17.8 bn | — | -18.9% | -29.0% | +2.0% | −5% / +37% |
| NTNXNutanix, Inc. | 17.5 bn | 12.5 | 37,460.2% | 52.8% | +12.4% | +35% / +50% |
| TYLTyler Technologies, Inc. | 16.1 bn | 50.9 | 10.5% | 13.5% | +9.1% | −14% / −1% |
| DOCUDocusign, Inc. | 15.0 bn | 49.0 | 17.8% | 9.8% | +8.2% | +16% / +86% |
| DTDynatrace, Inc. | 13.5 bn | 87.4 | 6.4% | 7.4% | +18.8% | +6% / −12% |
| GWREGuidewire Software, Inc. | 13.2 bn | 98.8 | 10.5% | 9.4% | +22.7% | −25% / +61% |
1- and 3-year price returns: for PTC from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 135.71 Total return -30% · Per year -30% | 239.08 Total return 23% · Per year 23% | 358.98 Total return 85% · Per year 85% |
| 3 years | 153.21 Total return -21% · Per year -8% | 301.59 Total return 55% · Per year 16% | 494.06 Total return 155% · Per year 37% |
| 5 years | 172.97 Total return -11% · Per year -2% | 380.45 Total return 96% · Per year 14% | 679.97 Total return 250% · Per year 29% |
- Exit P/E± 75.40
- Net margin± 52.78
- Annual revenue growth± 40.31
- Annual dilution± 4.43
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
PTC Inc. is a global software company headquartered in Boston, focused on product lifecycle management (PLM) and CAD software 1. Revenue grew 19% in fiscal 2025 to 2,739.2 million USD, and ARR reached 2.48 billion USD 1. In the third fiscal quarter of 2026 revenue fell 7%, largely due to the divestiture of Kepware and ThingWorx, while ARR was broadly flat 23.
SWOT
Strengths
- The subscription model delivers a high share of recurring revenue and good business predictability 1.
- The PLM and CAD portfolio is broad, with customers in critical industries such as aerospace and automotive 1.
- Operating cash flow rose sharply in fiscal 2025, allowing share repurchases and debt reduction 13.
Weaknesses
- Revenue is concentrated in discrete manufacturing, exposing the company to the cycles of that sector 1.
- The move to SaaS requires large investment and can disrupt revenue recognition, making period comparisons harder 12.
- Revenue in the third quarter of fiscal 2026 declined, showing how sensitive results are to large contracts and their timing 2.
Opportunities
Threats
- Larger competitors could win customers if they offer more attractive SaaS solutions 1.
- Import tariffs, geopolitical tensions and costly financing could slow customer purchasing decisions 12.
- Cybersecurity risks and tighter sustainability reporting requirements could generate costs and customer losses 1.
Risks
- Intense competitionmedium
Competitors with greater reputation and resources could reduce the company's ability to win new customers 1.
- Exposure to discrete manufacturinghigh
Manufacturers delaying investment could directly affect sales and ARR 12.
- SaaS transitionmedium
If the transition falls short, the company could lose customers or incur additional costs 1.
- Cybersecuritymedium
A security breach could affect products, customer data and reputation, with significant costs 1.
- Compliance and regulationlow
Growing sustainability and international compliance requirements could raise costs and legal exposure 1.
Investment thesis
What would need to be true (bull case)
- The subscription model and high share of recurring revenue could support predictable growth if customers keep expanding their use of the products 1.
- Strong interest in artificial intelligence could accelerate customers' need to modernise product data, an advantage for PTC 23.
- An active share repurchase policy and cash generation could support per-share results in coming periods 3.
What would break the thesis
- The revenue decline in the third quarter of fiscal 2026 shows results can be sensitive to large contracts and their timing 2.
- Dependence on discrete manufacturing could expose the company to a weaker economic cycle or tariffs that delay purchases 12.
- Larger, better-resourced competitors could limit growth if PTC's SaaS offerings are not adopted as the company expects 1.
What to watch
- Development of constant currency ARR excluding divested businessesQ4 2026
- Customer adoption of SaaS solutions and AI capabilities2027
- Completion of share repurchases and use of divestiture proceedsQ1 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
PTC runs mainly on a subscription model: 95% of 2025 revenue was recurring in nature 1. The company serves more than 30,000 customers in industrials, aerospace and defense, electronics, automotive and medical technology 1. Its product range includes Windchill and Codebeamer for PLM and application lifecycle management, ServiceMax and Servigistics for service management, and Creo, Onshape and Arena for CAD and collaboration 1.
In November 2025 PTC agreed to sell Kepware and ThingWorx to an affiliate of TPG for up to 725 million USD if targets are met 1. The transaction was completed in March 2026 3, and the company's capital plan centres on returning excess cash to shareholders through share repurchases 23.
Market context
PTC's customers are largely in discrete manufacturing, whose activity depends on macroeconomic conditions, import tariffs and the cost of financing 1. In the third quarter of fiscal 2026 the company noted that geopolitical and tariff uncertainty could lead customers to delay purchases or reduce subscriptions, which would weigh on ARR and cash flow 2.
Demand for SaaS solutions is rising, and PTC has introduced Windchill+ and Creo+ in this model, but customers could adopt these solutions more slowly than the company expects 1. The transition to SaaS and the timing of revenue recognition over contract terms can make results harder to compare from one period to the next 1.
Trends
- Artificial intelligence and product data modernisationtailwind
Management links growth to the need to modernise product data foundations, seen as essential for AI-driven transformation; if customers adopt these capabilities quickly, they could support ARR 23.
- Macroeconomic uncertainty and tariffsheadwind
Import tariffs, supply chain disruption and high interest rates could lead discrete manufacturers to delay purchases, which could slow growth 12.
- Shift to SaaSmixed
Moving customers from perpetual and on-premises subscriptions to SaaS could improve revenue predictability, but it requires investment and can change the timing of revenue recognition 1.
- Capital return and share repurchasesmixed
Large share repurchases in fiscal 2026 could support per-share metrics, but they use cash that could otherwise fund investment or acquisitions 3.
Competitive position
PTC faces large, established competitors in CAD and PLM, including Autodesk, Dassault Systèmes and Siemens, and in ALM including IBM, Jama Software and Siemens 1. In SLM it competes with enterprise software companies such as Oracle, SAP, IFS, Microsoft and Salesforce 1.
Competitors with greater financial resources and name recognition could limit PTC's ability to win new customers, especially if they offer more competitive SaaS solutions 1.
- AutodeskADSK
Competitor in enterprise CAD and PLM, named by PTC in its annual report.
- Dassault Systèmes
Competitor in enterprise CAD and PLM, named by PTC in its annual report.
- Siemens
Competitor in CAD, PLM and ALM, named by PTC in its annual report.
- IBMIBM
Competitor in the ALM segment, named by PTC in its annual report.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report05 Oct 2026Material agreement · Regulation FD disclosure · Financial statements and exhibits
- Quarterly report31 Jul 2026
- Current report29 Jul 2026Results of operations · Financial statements and exhibits
- Quarterly report07 May 2026
- Current report06 May 2026Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report16 Mar 2026Regulation FD disclosure · Financial statements and exhibits
- Current report11 Feb 2026Shareholder vote
- Quarterly report05 Feb 2026
- Current report04 Feb 2026Results of operations · Financial statements and exhibits
- Proxy statement23 Dec 2025
Sources
- [1] Form 10-K, fiscal year ended 2025-09-30 · SEC / PTC Inc. · 21 Nov 2025
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / PTC Inc. · 31 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / PTC Inc. · 29 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.