Ptc Stock Earnings Reports

PTC reported a strong Q2 as a more focused company following the March divestiture of Kepware and ThingWorx. Constant currency ARR (ex-divested businesses) was $2.388 billion, up 8.5% YoY (high end of guidance). Free cash flow and operating cash flow grew 14% YoY and free cash flow came in above guidance. Management highlighted clear go-to-market progress: improved rep productivity, stronger renewals, and a higher-quality, well-balanced pipeline for H2. PTC is emphasizing AI as a major demand driver — positioning Windchill, Creo/Onshape, Codebeamer and ServiceMax as the product-data foundations and specialized agent hosts required for industrial AI; management expects AI to accelerate modernization and create monetization opportunities over time. The company is building deferred ARR (notably into Q4 and FY27) and expects FY26 constant-currency ARR growth (ex divestitures) of ~7.5%-9.5% and ~$850M free cash flow for FY26 (with a $950M baseline after removing one-time items). PTC repurchased $250M in Q2, deployed divestiture proceeds into an accelerated share repurchase, expects another ~$250M repurchase in Q3, targets ~$1.225B–$1.325B total repurchases for FY26, and announced a new $2B buyback authorization effective Oct 1, 2026. Revenue and non-GAAP EPS guidance ranges were raised for FY26 ($2.58B–$2.82B revenue; $6.65–$8.90 non-GAAP EPS). Management reiterated confidence in a stronger second half driven by deferred ARR, pipeline conversion, and continued execution on product releases and go-to-market transformation.