PTC (PTC)
Market Price (2/20/2026): $154.44 | Market Cap: $18.4 BilSector: Information Technology | Industry: Application Software
PTC (PTC)
Market Price (2/20/2026): $154.44Market Cap: $18.4 BilSector: Information TechnologyIndustry: Application Software
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 39% | Weak multi-year price returns2Y Excs Rtn is -52%, 3Y Excs Rtn is -50% | Key risksPTC key risks include [1] competitive uncertainty and a potentially weakened market position following the divestiture of its Kepware and ThingWorx businesses, Show more. |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 31%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 31% | ||
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -27% | ||
| Low stock price volatilityVol 12M is 34% | ||
| Megatrend and thematic driversMegatrends include Automation & Robotics, and Artificial Intelligence. Themes include Factory Automation, Industrial Robotics, Show more. |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 39% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 31%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 31% |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -27% |
| Low stock price volatilityVol 12M is 34% |
| Megatrend and thematic driversMegatrends include Automation & Robotics, and Artificial Intelligence. Themes include Factory Automation, Industrial Robotics, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -52%, 3Y Excs Rtn is -50% |
| Key risksPTC key risks include [1] competitive uncertainty and a potentially weakened market position following the divestiture of its Kepware and ThingWorx businesses, Show more. |
Qualitative Assessment
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PTC (PTC) stock has lost about 20% since 10/31/2025 because of the following key factors:
1. Strategic Divestiture and Muted Market Reaction to Q4 2025 Earnings
PTC announced its fourth fiscal quarter 2025 results in early November 2025, reporting earnings per share (EPS) of $3.47 and revenue of $894 million, surpassing analyst expectations. However, the market's reaction was described as "muted," with the stock experiencing a slight decline in aftermarket trading. This lukewarm response was largely attributed to the simultaneous announcement of PTC's plan to divest its slower-growth Kepware and Thingworx Internet of Things (IoT) businesses to TPG for up to $725 million. This strategic pivot, intended to streamline the company's portfolio towards core areas like CAD, PLM, ALM, and SLM, introduced short-term uncertainty for investors, overshadowing the otherwise strong quarterly performance.
2. Multiple Analyst Downgrades and Price Target Reductions
Throughout the period, PTC experienced a series of downgrades and reductions in price targets from various financial analysts. In November 2025, Mizuho lowered its price target for PTC to $180 from $220, citing "re-rating and moderating ARR growth." Piper Sandler also maintained a "Neutral" rating but reduced its target price to $175 from $200 in early November 2025. More significantly, towards the end of January and into early February 2026, several firms adjusted their outlooks. Citigroup maintained a "Neutral" rating but lowered its price target to $181 from $185 on January 28, 2026, and Oppenheimer reduced its price target from $240 to $200 on the same day while maintaining an "Outperform" rating. Most impactful was JP Morgan's downgrade of PTC to "Underweight" from "Neutral" on February 2, 2026, simultaneously cutting its price target to $162 from $205, representing a nearly 21% decrease.
3. Moderating Annual Recurring Revenue (ARR) Growth Guidance for FY2026
PTC's guidance for fiscal year 2026 constant currency Annual Recurring Revenue (ARR) growth was set at 7%-9%. This projection, while aligned with or slightly below some consensus estimates, was noted by analysts as a reason for a "re-rating and moderating ARR growth." This outlook may have led investors to adjust their growth expectations for the company downward, contributing to a more cautious sentiment and subsequently impacting the stock price.
4. Anticipation of Weaker Q1 2026 Earnings
Leading up to PTC's scheduled first-quarter fiscal 2026 earnings release on February 4, 2026, analysts projected lower financial performance compared to the robust Q4 2025 results. Consensus estimates for Q1 2026 anticipated revenues between $600 million and $660 million and non-GAAP EPS in the range of $1.26 to $1.82. These anticipated figures represented a sequential decline from the Q4 2025 reported EPS of $3.47 and revenue of $894 million. The market often prices in expectations ahead of official announcements, and the anticipation of these comparatively weaker Q1 results likely contributed to the downward pressure on PTC's stock as investors adjusted their positions.
Updated on 2/1/2026 Show more
1. Strategic Divestiture and Muted Market Reaction to Q4 2025 Earnings
PTC announced its fourth fiscal quarter 2025 results in early November 2025, reporting earnings per share (EPS) of $3.47 and revenue of $894 million, surpassing analyst expectations. However, the market's reaction was described as "muted," with the stock experiencing a slight decline in aftermarket trading. This lukewarm response was largely attributed to the simultaneous announcement of PTC's plan to divest its slower-growth Kepware and Thingworx Internet of Things (IoT) businesses to TPG for up to $725 million. This strategic pivot, intended to streamline the company's portfolio towards core areas like CAD, PLM, ALM, and SLM, introduced short-term uncertainty for investors, overshadowing the otherwise strong quarterly performance.
2. Multiple Analyst Downgrades and Price Target Reductions
Throughout the period, PTC experienced a series of downgrades and reductions in price targets from various financial analysts. In November 2025, Mizuho lowered its price target for PTC to $180 from $220, citing "re-rating and moderating ARR growth." Piper Sandler also maintained a "Neutral" rating but reduced its target price to $175 from $200 in early November 2025. More significantly, towards the end of January and into early February 2026, several firms adjusted their outlooks. Citigroup maintained a "Neutral" rating but lowered its price target to $181 from $185 on January 28, 2026, and Oppenheimer reduced its price target from $240 to $200 on the same day while maintaining an "Outperform" rating. Most impactful was JP Morgan's downgrade of PTC to "Underweight" from "Neutral" on February 2, 2026, simultaneously cutting its price target to $162 from $205, representing a nearly 21% decrease.
3. Moderating Annual Recurring Revenue (ARR) Growth Guidance for FY2026
PTC's guidance for fiscal year 2026 constant currency Annual Recurring Revenue (ARR) growth was set at 7%-9%. This projection, while aligned with or slightly below some consensus estimates, was noted by analysts as a reason for a "re-rating and moderating ARR growth." This outlook may have led investors to adjust their growth expectations for the company downward, contributing to a more cautious sentiment and subsequently impacting the stock price.
4. Anticipation of Weaker Q1 2026 Earnings
Leading up to PTC's scheduled first-quarter fiscal 2026 earnings release on February 4, 2026, analysts projected lower financial performance compared to the robust Q4 2025 results. Consensus estimates for Q1 2026 anticipated revenues between $600 million and $660 million and non-GAAP EPS in the range of $1.26 to $1.82. These anticipated figures represented a sequential decline from the Q4 2025 reported EPS of $3.47 and revenue of $894 million. The market often prices in expectations ahead of official announcements, and the anticipation of these comparatively weaker Q1 results likely contributed to the downward pressure on PTC's stock as investors adjusted their positions.
Updated on 2/1/2026 Show more
Stock Movement Drivers
Fundamental Drivers
The -22.2% change in PTC stock from 10/31/2025 to 2/19/2026 was primarily driven by a -51.5% change in the company's P/E Multiple.| (LTM values as of) | 10312025 | 2192026 | Change |
|---|---|---|---|
| Stock Price ($) | 198.54 | 154.40 | -22.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,472 | 2,860 | 15.7% |
| Net Income Margin (%) | 20.7% | 28.6% | 37.9% |
| P/E Multiple | 46.4 | 22.5 | -51.5% |
| Shares Outstanding (Mil) | 120 | 119 | 0.5% |
| Cumulative Contribution | -22.2% |
Market Drivers
10/31/2025 to 2/19/2026| Return | Correlation | |
|---|---|---|
| PTC | -22.2% | |
| Market (SPY) | 0.4% | 43.5% |
| Sector (XLK) | -6.7% | 38.7% |
Fundamental Drivers
The -28.1% change in PTC stock from 7/31/2025 to 2/19/2026 was primarily driven by a -55.2% change in the company's P/E Multiple.| (LTM values as of) | 7312025 | 2192026 | Change |
|---|---|---|---|
| Stock Price ($) | 214.81 | 154.40 | -28.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,472 | 2,860 | 15.7% |
| Net Income Margin (%) | 20.7% | 28.6% | 37.9% |
| P/E Multiple | 50.2 | 22.5 | -55.2% |
| Shares Outstanding (Mil) | 120 | 119 | 0.5% |
| Cumulative Contribution | -28.1% |
Market Drivers
7/31/2025 to 2/19/2026| Return | Correlation | |
|---|---|---|
| PTC | -28.1% | |
| Market (SPY) | 8.6% | 44.6% |
| Sector (XLK) | 6.9% | 39.8% |
Fundamental Drivers
The -20.2% change in PTC stock from 1/31/2025 to 2/19/2026 was primarily driven by a -63.5% change in the company's P/E Multiple.| (LTM values as of) | 1312025 | 2192026 | Change |
|---|---|---|---|
| Stock Price ($) | 193.48 | 154.40 | -20.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,298 | 2,860 | 24.4% |
| Net Income Margin (%) | 16.4% | 28.6% | 74.7% |
| P/E Multiple | 61.8 | 22.5 | -63.5% |
| Shares Outstanding (Mil) | 120 | 119 | 0.7% |
| Cumulative Contribution | -20.2% |
Market Drivers
1/31/2025 to 2/19/2026| Return | Correlation | |
|---|---|---|
| PTC | -20.2% | |
| Market (SPY) | 14.7% | 53.5% |
| Sector (XLK) | 22.1% | 50.7% |
Fundamental Drivers
The 14.5% change in PTC stock from 1/31/2023 to 2/19/2026 was primarily driven by a 76.7% change in the company's Net Income Margin (%).| (LTM values as of) | 1312023 | 2192026 | Change |
|---|---|---|---|
| Stock Price ($) | 134.88 | 154.40 | 14.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,933 | 2,860 | 47.9% |
| Net Income Margin (%) | 16.2% | 28.6% | 76.7% |
| P/E Multiple | 50.6 | 22.5 | -55.5% |
| Shares Outstanding (Mil) | 117 | 119 | -1.6% |
| Cumulative Contribution | 14.5% |
Market Drivers
1/31/2023 to 2/19/2026| Return | Correlation | |
|---|---|---|
| PTC | 14.5% | |
| Market (SPY) | 74.7% | 56.9% |
| Sector (XLK) | 110.5% | 52.7% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| PTC Return | 1% | -1% | 46% | 5% | -5% | -11% | 30% |
| Peers Return | 28% | -21% | 39% | 24% | 6% | -13% | 60% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 1% | 83% |
Monthly Win Rates [3] | |||||||
| PTC Win Rate | 58% | 42% | 67% | 67% | 42% | 0% | |
| Peers Win Rate | 60% | 33% | 63% | 63% | 52% | 10% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| PTC Max Drawdown | -11% | -19% | -2% | -6% | -26% | -14% | |
| Peers Max Drawdown | -11% | -34% | -5% | -9% | -22% | -20% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -1% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: ADSK, TRMB, SNPS, CDNS, ORCL. See PTC Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 2/19/2026 (YTD)
How Low Can It Go
| Event | PTC | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -36.1% | -25.4% |
| % Gain to Breakeven | 56.4% | 34.1% |
| Time to Breakeven | 566 days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -45.3% | -33.9% |
| % Gain to Breakeven | 82.9% | 51.3% |
| Time to Breakeven | 151 days | 148 days |
| 2018 Correction | ||
| % Loss | -40.9% | -19.8% |
| % Gain to Breakeven | 69.3% | 24.7% |
| Time to Breakeven | 416 days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -66.9% | -56.8% |
| % Gain to Breakeven | 201.9% | 131.3% |
| Time to Breakeven | 603 days | 1,480 days |
Compare to ADSK, TRMB, SNPS, CDNS, ORCL
In The Past
PTC's stock fell -36.1% during the 2022 Inflation Shock from a high on 7/23/2021. A -36.1% loss requires a 56.4% gain to breakeven.
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About PTC (PTC)
PTC Inc. operates as software and services company in the Americas, Europe, and the Asia Pacific. The company operates in two segments, Software Products and Professional Services. It offers ThingWorx platform, which offers a set of capabilities that enable enterprises to digitally transform every aspect of their business with innovative solutions that are simple to create, easy to implement, scalable to meet future needs, and designed to enable customers to accelerate time to value; and Vuforia, which enables the visualization of digital information in a physical context and the creation of AR. The company also provides Onshape, a software-as-a-service product development platform unites computer-aided design with data management, collaboration tools, and real-time analytics; Arena, a PLM solution enables product teams to collaborate virtually anytime and anywhere; Creo, a 3D CAD technology enables the digital design, testing, and modification of product models; and Windchill, a product lifecycle management software. In addition, it offers Integrity, an application lifecycle management solution; Servigistics, service parts management solution; and consulting, implementation, training, cloud, and license and support services. The company was formerly known as Parametric Technology Corporation and changed its name to PTC Inc. in January 2013. PTC Inc. was incorporated in 1985 and is headquartered in Boston, Massachusetts.
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Here are 1-3 brief analogies for PTC:
- PTC is like Autodesk for industrial product design and lifecycle management.
- PTC is like SAP for product creation and industrial digital operations.
- PTC is like Salesforce, but for managing the entire lifecycle of industrial products instead of customer relationships.
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- Creo: A suite of 3D CAD (Computer-Aided Design) software for product design and development.
- Windchill: A PLM (Product Lifecycle Management) software system that manages product data and processes throughout the entire lifecycle.
- ThingWorx: An industrial IoT (Internet of Things) platform used for connecting devices, building applications, and analyzing data.
- Vuforia: An augmented reality (AR) platform that enables the creation of immersive AR experiences for industrial and enterprise use cases.
- Onshape: A cloud-native product development platform that unifies CAD, data management, and collaboration in a web browser.
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PTC (symbol: PTC) primarily sells its software and services to other companies, operating on a Business-to-Business (B2B) model. Its solutions, which include CAD (Computer-Aided Design), PLM (Product Lifecycle Management), IoT (Internet of Things), and AR (Augmented Reality), are utilized across various manufacturing and industrial sectors.
According to its recent 10-K filings (e.g., for the fiscal year ended September 30, 2023), PTC states that it has a broad base of thousands of customers globally, and no single customer accounted for more than 10% of its total revenue for the fiscal years 2023, 2022, or 2021. This indicates that PTC does not rely on a few "major" customers in terms of revenue concentration.
However, PTC serves numerous large, well-known companies across its target industries. The following are examples of prominent public companies that have been identified through PTC's case studies, press releases, or general industry knowledge as users of PTC's technologies. These companies represent the caliber and type of organizations that utilize PTC's offerings, rather than being "major" in the sense of dominating PTC's revenue:
- Volvo Group (OM: VOLV B) - A global manufacturer of trucks, buses, construction equipment, and marine and industrial engines.
- Lockheed Martin Corporation (NYSE: LMT) - A global security and aerospace company.
- Caterpillar Inc. (NYSE: CAT) - The world's largest construction equipment manufacturer.
- Rockwell Automation, Inc. (NYSE: ROK) - A global leader in industrial automation and digital transformation (also a strategic alliance partner).
- Toyota Motor Corporation (NYSE: TM) - One of the world's largest automotive manufacturers.
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- Amazon.com, Inc. (AMZN)
- Microsoft Corporation (MSFT)
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Neil Barua, President and Chief Executive Officer
Neil Barua assumed the role of President and Chief Executive Officer of PTC on February 14, 2024. His career spans over 23 years across global operations, financial, and executive positions. Prior to joining PTC, Mr. Barua served as CEO of ServiceMax, transforming it into a leader in field service management. Following PTC's acquisition of ServiceMax in January 2023, he led PTC's Service Lifecycle Management business. Earlier in his career, Mr. Barua was CEO of IPC Systems, a global provider of specialized technology solutions, and served as an operating partner at Silver Lake, a technology investing firm.
Kristian Talvitie, Executive Vice President and Chief Financial Officer
Kristian Talvitie has served as Executive Vice President and Chief Financial Officer at PTC since May 2019. He is responsible for overseeing worldwide accounting, financial planning and analysis, tax and treasury, investor relations, and information technology functions. Mr. Talvitie previously worked at PTC from 2008 to 2016 in various capacities, including Corporate Vice President of Finance and Vice President of Investor Relations and Corporate Communications. In his time away from PTC, he held CFO roles at SaaS company Sovos and software company Syncsort. He has over 25 years of experience in finance, sales, and marketing, and has been instrumental in driving margin expansion, reducing operating expenses, and facilitating PTC's shift to a subscription business model.
Lisa Reilly, Executive Vice President and Chief People Officer
Lisa Reilly is the Executive Vice President and Chief People Officer at PTC, a role she has held since 2022. She initially joined the company in June 2020 as Senior Vice President of Global HR Business Partners. Prior to her tenure at PTC, Ms. Reilly held global HR leadership positions at Cisco Systems, Motorola, G+J Publishing, and Text100 PR.
Aaron von Staats, Executive Vice President, General Counsel & Corporate Secretary
Aaron von Staats serves as Executive Vice President, General Counsel & Corporate Secretary for PTC, overseeing the company's worldwide legal, compliance, and cyber risk management functions. His extensive responsibilities include corporate governance, SEC reporting and compliance, mergers and acquisitions, customer and partner transactions, intellectual property, technology licensing, litigation, and employment law. He also manages PTC's compliance programs focused on anti-corruption, export compliance, insider trading, and data privacy.
Jon Stevenson, Executive Vice President and Chief Product Officer
Jon Stevenson brings more than three decades of experience in product development, engineering leadership, and technology innovation across CAD, PLM, AI, and SaaS domains to his role as Executive Vice President and Chief Product Officer. Before his current position, he held executive roles at Stratasys and Grab CAD. Mr. Stevenson has also served as a board member, advisor, and investor for various product development, SaaS, and AI-focused companies, and previously held positions as a Vice President in PTC's R&D Group and Executive Vice President of PTC's CAD business unit.
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PTC Inc. (symbol: PTC) faces several key risks to its business operations and financial performance:- Technological Disruption and Intense Competition: PTC operates in a highly competitive and rapidly evolving software market, requiring continuous innovation to keep pace with technological advancements and customer preferences. The company faces significant pressure from established competitors like Autodesk, Dassault Systèmes, and Siemens, as well as emerging startups. The rapid industry shift towards cloud-based and Software-as-a-Service (SaaS) solutions necessitates substantial investment and strategic foresight to maintain a competitive edge. Additionally, the recent divestiture of its Kepware and ThingWorx businesses introduces uncertainty regarding future revenue composition and growth trajectory, and could potentially weaken PTC's competitive positioning in comprehensive digital transformation projects by losing technological synergies.
- Exposure to Macroeconomic Headwinds and Dependence on the Discrete Manufacturing Sector: A significant portion of PTC's business is tied to the discrete manufacturing sector, making it vulnerable to broader macroeconomic factors. These include tariffs, supply chain disruptions, currency fluctuations, and overall economic uncertainty, which can lead to delayed software investments and unpredictable revenue streams. Roughly 50% of PTC's revenue and 35% of its expenses are transacted in foreign currencies, subjecting the company to foreign exchange rate volatility, particularly with the Euro and Japanese Yen, which can materially affect its financial results.
- Cybersecurity Threats: As a global software company that increasingly integrates AI into its products and relies on third-party cloud infrastructure, PTC is subject to ongoing and evolving cybersecurity risks. Despite implementing a "holistic, multi-layered" cybersecurity strategy, the company faces threats related to data security, service disruptions, and potential failures from third-party technology providers. Such incidents could harm PTC's reputation, increase expenses, and adversely impact its business operations and financial condition.
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The increasing capability and adoption of hyperscaler cloud platforms (such as AWS IoT, Microsoft Azure IoT, and Google Cloud IoT) for comprehensive industrial IoT solutions pose an emerging threat to PTC's ThingWorx platform. These hyperscaler offerings provide robust infrastructure, analytics, and machine learning capabilities, often integrated with broader cloud ecosystems, enabling customers to build and manage their IoT applications with increasing ease and scale, potentially reducing reliance on specialized industrial IoT platforms.
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PTC offers a portfolio of software products and services, with its main offerings including Product Lifecycle Management (PLM), Computer-Aided Design (CAD), Industrial Internet of Things (IIoT), and Augmented Reality (AR). The addressable markets for these main products are as follows:
- Product Lifecycle Management (PLM): The global Product Lifecycle Management (PLM) market size was valued at USD 26.24 billion in 2024 and is projected to grow to USD 46.81 billion by 2032. Another estimate places the global PLM market size at approximately USD 36.57 billion in 2025. North America dominated the global market with the largest market share of 36% in 2024.
- Computer-Aided Design (CAD): The global Computer-Aided Design (CAD) market was valued at USD 10.67 billion in 2024 and is estimated to reach USD 11.40 billion in 2025. Another report estimates the global CAD software market size at USD 23.75 billion in 2025, projected to reach USD 44.38 billion by 2035. North America holds the largest share of the global CAD market, at 39.87%.
- Industrial Internet of Things (IIoT) / Internet of Things (IoT) Platforms: The global Internet of Things (IoT) Platform market size is estimated at USD 60.54 billion in 2025 and is expected to reach USD 112.23 billion by 2030. North America accounts for the largest market share in the IoT Platform market in 2025.
- Augmented Reality (AR): The enterprise augmented reality market size is estimated at USD 112.91 billion in 2025 and is forecast to reach USD 422.61 billion by 2030. The global augmented reality market (broader scope) was estimated at USD 83.65 billion in 2024 and is projected to reach USD 599.59 billion by 2030. North America accounted for the highest revenue share in the augmented reality market, over 33% in 2024.
- Service Lifecycle Management (SLM): null
- Application Lifecycle Management (ALM): null
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Expected Drivers of Future Revenue Growth for PTC (PTC)
PTC is poised for future revenue growth over the next 2-3 years, driven by several strategic initiatives and strong market demand for its core offerings. Key drivers include the continued strength and evolution of its core product portfolio, significant integration of artificial intelligence, an accelerated shift towards cloud and SaaS models, a focused go-to-market strategy, and the strong performance of specific product lines.
- Expansion of Core PLM and CAD Solutions with an "Intelligent Product Lifecycle" Focus: PTC's foundational Product Lifecycle Management (PLM) and Computer-Aided Design (CAD) solutions remain critical revenue drivers. The company's strategic vision revolves around the "Intelligent Product Lifecycle," which aims to enhance how physical products are engineered, manufactured, and serviced. This focus is expected to fuel continued demand for its robust PLM and CAD offerings, including Creo and Windchill.
- Integration of Artificial Intelligence (AI) Across Product Portfolio: PTC is actively embedding advanced AI capabilities into its core platforms, including CAD, PLM, Application Lifecycle Management (ALM), and Service Lifecycle Management (SLM). This initiative is designed to help customers establish structured product data foundations, crucial for advanced analytics and automation. New AI features in platforms like Onshape, ServiceMax, and Arena are anticipated to boost portfolio momentum and drive adoption.
- Accelerated Cloud and SaaS Adoption: The ongoing transition to a subscription-based model and increased investment in cloud and Software-as-a-Service (SaaS) offerings are significant growth catalysts. PTC's pure-SaaS CAD and PDM platform, Onshape, has been identified as an industry growth leader. Furthermore, the introduction of SaaS capabilities to its Creo product via the Atlas platform underscores PTC's commitment to capitalizing on the advantages of cloud delivery.
- Optimized Go-to-Market Strategy and Customer Engagement: PTC is implementing a realignment of its go-to-market organization to better serve customers across key verticals by increasing the specialization of its sales and customer success teams. This strategic shift, coupled with strong demand from industries undergoing rapid digital transformation such as automotive, federal, aerospace, and defense, is expected to drive customer acquisition and expansion. Large multiyear renewals and contracts are also contributing significantly to revenue growth.
- Strong Performance and Cross-Selling of Key Products like Codebeamer and Windchill: Specific products like Codebeamer and Windchill are demonstrating strong performance and making considerable inroads in various sectors. Codebeamer is gaining traction in the software-defined vehicles space within the automotive industry. Windchill PLM has proven to be a trusted source for real-time product data, leading to significant productivity improvements and increased adoption, as seen in a medical technology customer standardizing on the platform.
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Share Repurchases
- PTC's Board of Directors authorized a share repurchase program of up to $2 billion through September 30, 2027.
- The company plans to repurchase approximately $300 million of its common stock in fiscal year 2025. By the third fiscal quarter of 2025, PTC had already repurchased $225 million of this planned amount.
- During Q3'25, PTC allocated $75 million towards share repurchases.
Share Issuance
- PTC's shares outstanding increased by 0.03% in one year to 119.79 million.
- For fiscal year 2025, stock-based compensation expense is expected to be approximately $210 million to $220 million, which impacts the number of shares issued.
- The company expects its share count to remain approximately flat for fiscal year 2025, balancing repurchases with stock-based compensation.
Inbound Investments
No significant inbound investments by third parties were reported during the last 3-5 years.
Outbound Investments
- PTC acquired ServiceMax for approximately $1.46 billion, with the first installment of $835 million paid in January 2023 and the second of $650 million in October 2023. This acquisition aims to strengthen PTC's closed-loop product lifecycle management (PLM) offerings.
- In 2022, PTC acquired Intland Software for approximately $280 million to broaden its Application Lifecycle Management (ALM) footprint in safety-critical and regulated industries.
- In October 2023, PTC acquired pure-systems GmbH for $93.5 million to expand its product lifecycle management offerings.
- PTC has invested over $350 million in India over the last five years and anticipates investing $100 million annually to expand its operations in the country.
Capital Expenditures
- PTC reported capital expenditures of -$14.38 million in fiscal year 2024.
- For fiscal year 2025, capital expenditures are expected to be approximately $10 million.
- Expected capital expenditures for fiscal year 2026 are $30 million, which includes $20 million for relocating a major research and development (R&D) center.
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| 01302026 | CVLT | CommVault Systems | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 2.3% | 2.3% | -5.1% |
| 01302026 | NTNX | Nutanix | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 6.2% | 6.2% | -6.3% |
| 01302026 | FICO | Fair Isaac | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -8.1% | -8.1% | -9.2% |
| 01022026 | PTC | PTC | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -7.8% | -7.8% | -12.3% |
| 03312025 | PTC | PTC | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 31.6% | 1.2% | -11.8% |
| 08312022 | PTC | PTC | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 7.8% | 28.1% | -9.3% |
| 02282022 | PTC | PTC | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 2.9% | 12.6% | -12.3% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 192.82 |
| Mkt Cap | 64.6 |
| Rev LTM | 6,050 |
| Op Inc LTM | 1,372 |
| FCF LTM | 1,119 |
| FCF 3Y Avg | 1,299 |
| CFO LTM | 1,568 |
| CFO 3Y Avg | 1,446 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 15.3% |
| Rev Chg 3Y Avg | 13.0% |
| Rev Chg Q | 16.1% |
| QoQ Delta Rev Chg LTM | 3.8% |
| Op Mgn LTM | 27.7% |
| Op Mgn 3Y Avg | 25.3% |
| QoQ Delta Op Mgn LTM | 0.9% |
| CFO/Rev LTM | 31.2% |
| CFO/Rev 3Y Avg | 29.6% |
| FCF/Rev LTM | 23.7% |
| FCF/Rev 3Y Avg | 24.9% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 64.6 |
| P/S | 7.2 |
| P/EBIT | 32.1 |
| P/E | 44.4 |
| P/CFO | 34.9 |
| Total Yield | 2.3% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | 2.3% |
| D/E | 0.1 |
| Net D/E | 0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -7.0% |
| 3M Rtn | -9.7% |
| 6M Rtn | -23.0% |
| 12M Rtn | -11.3% |
| 3Y Rtn | 23.5% |
| 1M Excs Rtn | -7.9% |
| 3M Excs Rtn | -13.9% |
| 6M Excs Rtn | -30.6% |
| 12M Excs Rtn | -23.1% |
| 3Y Excs Rtn | -44.6% |
Comparison Analyses
Price Behavior
Price Behavior
| Market Price | $154.40 | |
| Market Cap ($ Bil) | 18.5 | |
| First Trading Date | 03/26/1990 | |
| Distance from 52W High | -28.7% | |
| 50 Days | 200 Days | |
| DMA Price | $166.70 | $184.26 |
| DMA Trend | indeterminate | down |
| Distance from DMA | -7.4% | -16.2% |
| 3M | 1YR | |
| Volatility | 28.8% | 34.4% |
| Downside Capture | 185.45 | 116.31 |
| Upside Capture | 80.63 | 92.16 |
| Correlation (SPY) | 36.7% | 55.9% |
PTC Betas & Captures as of 1/31/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.52 | 1.10 | 1.21 | 1.05 | 0.98 | 0.99 |
| Up Beta | 1.97 | 1.69 | 0.71 | 1.15 | 1.00 | 0.95 |
| Down Beta | 1.13 | 0.78 | 1.50 | 1.10 | 1.02 | 1.01 |
| Up Capture | 30% | 43% | 37% | 35% | 62% | 78% |
| Bmk +ve Days | 11 | 22 | 34 | 71 | 142 | 430 |
| Stock +ve Days | 7 | 19 | 28 | 56 | 125 | 396 |
| Down Capture | 327% | 190% | 183% | 153% | 106% | 102% |
| Bmk -ve Days | 9 | 19 | 27 | 54 | 109 | 321 |
| Stock -ve Days | 13 | 22 | 33 | 69 | 125 | 354 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with PTC | |
|---|---|---|---|---|
| PTC | -10.4% | 34.4% | -0.28 | - |
| Sector ETF (XLK) | 16.4% | 27.5% | 0.53 | 53.0% |
| Equity (SPY) | 13.0% | 19.4% | 0.51 | 56.1% |
| Gold (GLD) | 71.2% | 25.5% | 2.08 | -4.2% |
| Commodities (DBC) | 7.3% | 16.9% | 0.25 | 11.0% |
| Real Estate (VNQ) | 6.4% | 16.7% | 0.20 | 38.0% |
| Bitcoin (BTCUSD) | -30.2% | 44.9% | -0.66 | 21.5% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with PTC | |
|---|---|---|---|---|
| PTC | 1.3% | 31.1% | 0.09 | - |
| Sector ETF (XLK) | 16.1% | 24.8% | 0.59 | 59.9% |
| Equity (SPY) | 13.4% | 17.0% | 0.62 | 61.0% |
| Gold (GLD) | 22.0% | 17.1% | 1.05 | 6.3% |
| Commodities (DBC) | 11.0% | 19.0% | 0.47 | 12.4% |
| Real Estate (VNQ) | 4.8% | 18.8% | 0.16 | 43.2% |
| Bitcoin (BTCUSD) | 6.9% | 57.1% | 0.34 | 27.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with PTC | |
|---|---|---|---|---|
| PTC | 18.6% | 32.8% | 0.60 | - |
| Sector ETF (XLK) | 23.2% | 24.2% | 0.87 | 61.0% |
| Equity (SPY) | 15.8% | 17.9% | 0.76 | 61.3% |
| Gold (GLD) | 15.0% | 15.6% | 0.80 | 3.8% |
| Commodities (DBC) | 8.7% | 17.6% | 0.41 | 20.5% |
| Real Estate (VNQ) | 6.8% | 20.7% | 0.29 | 42.8% |
| Bitcoin (BTCUSD) | 67.7% | 66.7% | 1.07 | 15.8% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 2/4/2026 | 1.7% | 2.8% | |
| 11/5/2025 | -8.4% | -6.2% | -8.2% |
| 7/30/2025 | 6.1% | 6.5% | 6.2% |
| 2/5/2025 | -9.6% | -12.2% | -14.3% |
| 11/6/2024 | -4.0% | -2.3% | 1.5% |
| 7/31/2024 | -1.1% | -6.0% | -0.4% |
| 5/1/2024 | -2.5% | 1.9% | 0.7% |
| 1/31/2024 | -0.7% | -0.2% | 3.9% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 10 | 12 | 13 |
| # Negative | 13 | 11 | 9 |
| Median Positive | 6.3% | 5.1% | 9.2% |
| Median Negative | -4.0% | -6.0% | -9.6% |
| Max Positive | 17.2% | 20.9% | 31.7% |
| Max Negative | -10.0% | -12.2% | -14.3% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 12/31/2025 | 02/05/2026 | 10-Q |
| 09/30/2025 | 11/21/2025 | 10-K |
| 06/30/2025 | 07/31/2025 | 10-Q |
| 03/31/2025 | 05/01/2025 | 10-Q |
| 12/31/2024 | 02/06/2025 | 10-Q |
| 09/30/2024 | 11/14/2024 | 10-K |
| 06/30/2024 | 08/02/2024 | 10-Q |
| 03/31/2024 | 05/03/2024 | 10-Q |
| 12/31/2023 | 02/02/2024 | 10-Q |
| 09/30/2023 | 11/20/2023 | 10-K |
| 06/30/2023 | 08/04/2023 | 10-Q |
| 03/31/2023 | 05/03/2023 | 10-Q |
| 12/31/2022 | 02/09/2023 | 10-Q |
| 09/30/2022 | 11/15/2022 | 10-K |
| 06/30/2022 | 08/05/2022 | 10-Q |
| 03/31/2022 | 05/05/2022 | 10-Q |
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Talvitie, Kristian | EVP, Chief Financial Officer | Direct | Sell | 12112025 | 173.14 | 50,291 | 8,707,634 | 2,144,574 | Form |
| 2 | Talvitie, Kristian | EVP, Chief Financial Officer | Direct | Sell | 12082025 | 173.34 | 2,320 | 402,160 | 11,270,018 | Form |
| 3 | Talvitie, Kristian | EVP, Chief Financial Officer | Direct | Sell | 12082025 | 174.71 | 2,338 | 408,461 | 10,950,013 | Form |
| 4 | Von, Staats Aaron C | EVP, Chief Legal Officer | Direct | Sell | 12082025 | 174.79 | 6,328 | 1,106,085 | 3,926,008 | Form |
| 5 | Christenson, Alice | Chief Accounting Officer | Direct | Sell | 11262025 | 173.52 | 1,323 | 229,567 | 209,439 | Form |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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