PTC Inc (PTC)
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symbol.quality_heading
The business works in principle, but one material question is open. As long as it stays open, our findings do not carry a quality verdict.
There is little to argue with on substance: an 84 percent gross margin, a 36 percent operating margin in fiscal 2025, $856.7 million of free cash flow, 95 percent recurring revenue, more than 30,000 customers and a 59.0 percent equity ratio. No going-concern language, no existential dependence on a single counterparty, nothing unusual about the auditor or the leadership. What remains open is a material operating question, and it is measurable in the filings: reported revenue grew 22 percent in the quarter ended March 31, 2026 while contract value grew 3 percent — 11 percent adjusted for the divested businesses. As long as ASC 606 pulls the license portion of long contracts forward and long-term receivables are up 89 percent in fiscal 2025, it is impossible to separate cleanly how much of the growth is timing. On top of that sits a balance sheet whose equity consists entirely of goodwill and intangibles. That is not a break in substance, but it is more than a formality. Hence yellow: proven quality, unproven growth base. The decision is yours.
symbol.quality_note
PTC earned more in the quarter ended March 31, 2026 than ever before: $590.7 million, $4.98 per diluted share, up 270 percent. The 10-Q filed on May 7, 2026 also names the source: $462.6 million came from selling the Kepware and ThingWorx businesses to a private equity firm. That single item is what pushes the price-to-earnings ratio down to roughly 11 — and it never repeats. Let us do the math on what is left once you take it out.
Read the analysis
Stock Watch
This analysis is as of July 26, 2026. Stock Watch will tell you what's changed at PTC since then.
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Appears in These Scanners
This stock currently matches 8 of our scanner strategies — each hit links to the scanner.
Only genuine hits from verified scanners count; pure ranking metrics (P/E, P/S, and similar, which just sort the whole universe) don't count as a hit. View all scanners
Trading Day
Key levels of the most recently completed trading day — not a live quote.
52-Week Range
Current price 137.20 $ — 24% of the range above the low.
Lowest and highest closing price over the last 52 weeks. The marker shows where the current price sits within that range: close to the high speaks for strength, close to the low for weakness.
Basics
Performance
Technical Indicators
Calculated from the price history · as of 08/03/2026
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
This stock currently pays no dividend.
Quality & Screener
AI Rating
Sells AIPTC baut KI-Fähigkeiten laut eigenem Geschäftsbericht in viele der verkauften Software-Produkte ein und verknüpft sie im Quartalsbericht ausdrücklich mit dem erwarteten Vertragswert (ARR) und Mittelzufluss.
View the full file — quotes, sources, reviewed filings
„We are increasingly incorporating AI capabilities into many of our products to enable our customers to become more agile and productive."
Wir bauen zunehmend KI-Fähigkeiten in viele unserer Produkte ein, damit unsere Kunden beweglicher und produktiver werden.
„This includes the growing emphasis on AI-driven transformation across our customers’ teams, operations, and processes. A product data foundation is the backbone of AI-driven transformation."
Dazu gehört die wachsende Bedeutung der KI-getriebenen Transformation in den Teams, dem Betrieb und den Prozessen unserer Kunden. Ein Produktdaten-Fundament ist das Rückgrat der KI-getriebenen Transformation.
„our investments in our software solutions, including the integration of artificial intelligence (AI) capabilities into our software solutions, may not drive expansion of those solutions and/or generate the ARR and/or cash flow we expect if those capabilities are not made available when or as we expect"
unsere Investitionen in unsere Softwarelösungen, einschließlich der Integration von Fähigkeiten der künstlichen Intelligenz (KI) in unsere Softwarelösungen, führen möglicherweise nicht zur Ausweitung dieser Lösungen und erzeugen möglicherweise nicht den Vertragswert (ARR) und/oder Mittelzufluss, den wir erwarten, falls diese Fähigkeiten nicht zu dem Zeitpunkt oder in der Weise bereitstehen, die wir erwarten
Filings Reviewed: 10-Q 2026-05-07 · 10-Q 2026-02-05 · 10-K 2025-11-21 · 10-Q 2025-07-31 · 10-Q 2025-05-01 · 10-K 2024-11-14
Rated on July 26, 2026 · How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Analysts & Price Target
The price target sits 26.3% above the current price.
- Consensus
- Sell
- Analyst Ratings
- 20
Combined picture of the price targets and recommendations of every analyst covering the stock. Price targets are expectations for the next 12 months, not promises — and they often follow the price rather than predict it.
Estimates by Fiscal Year
| Fiscal Year | EPS Estimate ($) | EPS Range ($) | Revenue Estimate ($M) | Expected Growth | Analysts |
|---|---|---|---|---|---|
| 09/30/2026 | 8.18 | 7.92 – 8.39 | 2,726 | 2.2% | 20 |
| 09/30/2027 | 8.87 | 8.32 – 9.56 | 2,896 | 8.4% | 20 |
Average of the analyst estimates for the coming fiscal years. The range shows how far the most optimistic and the most cautious estimate sit apart — the wider it is, the less certain the expectation.
Revenue & Profit
Cash Flow
Balance Sheet
Margins
Per Share
Click the chart or tab into it, then use ← and → to step through the periods.
None of the selected stocks reports this metric. Pick another metric or switch between annual and quarterly.
· Total · per year
These companies report in different currencies — switch on “Indexed” or pick a margin for a fair comparison.
The figures could not be loaded right now.
Source: fundamental data
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.68 | 23.00 | 565 | 2.70 | 14.60 | 238 | 236 |
| 2025: Q1 | 1.35 | 41.90 | 636 | 5.50 | 25.60 | 281 | 279 |
| 2025: Q2 | 1.17 | 105.50 | 644 | 24.20 | 21.90 | 244 | 242 |
| 2025: Q3 | 2.88 | 175.00 | 894 | 42.70 | 38.90 | 104 | 101 |
| 2025: Q4 | 1.39 | 104.40 | 686 | 21.40 | 24.30 | 270 | 267 |
| 2026: Q1 | 4.98 | 270.20 | 774 | 21.70 | 76.30 | 321 | 318 |
| 2026: Q2 | 1.03 | -12.00 | 600 | -6.80 | 19.80 | 261 | 249 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Annual Figures
| Fiscal Year | Revenue ($M) | EBIT ($M) | Net Income ($M) | EPS ($) | Operating Cash Flow ($M) | Equity ($M) | Total Assets ($M) |
|---|---|---|---|---|---|---|---|
| 2016 | 1,141 | -37 | -54 | -0.48 | 183 | 843 | 2,352 |
| 2017 | 1,164 | 41 | 6 | 0.05 | 135 | 885 | 2,360 |
| 2018 | 1,242 | 73 | 52 | 0.44 | 248 | 875 | 2,329 |
| 2019 | 1,256 | 118 | -27 | -0.23 | 285 | 1,202 | 2,665 |
| 2020 | 1,458 | 211 | 131 | 1.12 | 234 | 1,438 | 3,383 |
| 2021 | 1,807 | 381 | 477 | 4.03 | 369 | 2,038 | 4,508 |
| 2022 | 1,933 | 447 | 313 | 2.65 | 435 | 2,296 | 4,687 |
| 2023 | 2,097 | 458 | 246 | 2.06 | 611 | 2,677 | 6,289 |
| 2024 | 2,298 | 588 | 376 | 3.12 | 750 | 3,214 | 6,384 |
| 2025 | 2,739 | 982 | 734 | 6.08 | 868 | 3,826 | 6,617 |
Fiscal years from the audited annual reports, oldest first. EBIT is the operating profit before interest and taxes; total assets are everything the company owns.
Assessment: Opportunities & Risks
PTC earns its money on subscriptions: 95 percent of fiscal 2025 revenue was recurring, gross margin was 84 percent, and operating income reached $982.4 million, or 36 percent of revenue, up from 26 percent a year earlier. Free cash flow rose to $856.7 million (2024: $735.6 million). This is not a revenue story, it is an earnings machine.
Of the $590.7 million in net income for the quarter ended March 31, 2026, $462.6 million came from selling Kepware and ThingWorx — roughly $360 million after $102.4 million of tax. That is $3.04 of the reported $4.98 per diluted share. Without it the quarter would have delivered about $1.94 per share: more than the $1.35 a year earlier, but no record.
Revenue in the quarter ended March 31, 2026 rose 22 percent to $774.3 million, while the annualized value of active contracts grew only 3 percent to $2,364.7 million — 11 percent excluding the divested businesses. The gap comes from ASC 606: the license portion of multi-year contracts is recognized up front. In fiscal 2025 that pushed long-term receivables up by $179 million, or 89 percent.
As of March 31, 2026, equity of $3,859.9 million (59.0 percent of total assets) and $439.1 million of cash stand against $1,200.0 million of debt — comfortable against quarterly operating income of $295.8 million. Two things dim the picture: goodwill and intangibles add up to $4,186.2 million, or 108 percent of equity, and virtually the entire debt stack matures in 2028.
The divestiture proceeds went to shareholders rather than into an expensive acquisition: $626 million of buybacks in the quarter ended March 31, 2026, including $375 million through an accelerated share repurchase entered into on March 17, 2026. Shares outstanding fell from 119,536,000 on September 30, 2025 to 115,505,791 on May 4, 2026. As of March 31, 2026, $950.0 million of the authorization running to September 30, 2026 was still open.
At a market value of roughly $13.7 billion (data as of July 26, 2026), trailing earnings of $10.41 per share imply a price-to-earnings ratio of about 11. Strip out the divestiture gain and about $7.37 per share remains, for a P/E near 16 — not expensive for a company with an 84 percent gross margin, but not a bargain either. The mean price target of 20 analysts stood at $175.35, roughly 48 percent above the implied price.
PTC is a good company with a misleading headline number. The business works: $2,739.2 million of revenue and $734.0 million of net income in fiscal 2025, an 84 percent gross margin, $856.7 million of free cash flow, 95 percent recurring revenue. But three fifths of the record profit in the quarter ended March 31, 2026 came from selling Kepware and ThingWorx, and that same item is what pushes the price-to-earnings ratio down to roughly 11. Take it out and you are left with a solid, fairly priced software company and one open question: how much of the reported revenue growth is contract duration, and how much is new business? Not investment advice.
- PTC reached our research list through our in-house stock scanner: the stock sits in the U.S. selection of the “Fundamental Rank (A / A+)” list, which sorts companies by the quality of their numbers — with a fundamental rating of 76 points out of 100 and therefore grade A (as of July 26, 2026; 38 U.S. names meet the criteria and the page shows the first 25). On the same date PTC appeared in ten lists at once, among them quality growth, EPS acceleration, professional ownership above 80 percent and the Altman-Z balance sheet screen. The lists are recomputed daily.
- Recency: this analysis reflects the Form 10-K for fiscal year 2025 (November 21, 2025), the Form 10-Q for the quarter ended March 31, 2026 (May 7, 2026), and every document filed since. After May 7, 2026 only insider reports (Form 4), a proposed sale notice (Form 144) and a SCHEDULE 13G/A dated May 15, 2026 followed — none of which changes the figures used here.
- Valuation figures are dated and evergreen: the implied price of about $118.50 comes from a market value of roughly $13.7 billion (data as of July 26, 2026) divided by the 115,505,791 shares the 10-Q reports as of May 4, 2026. For context: in February and March 2026 PTC repurchased its own shares at an average of $155.36. Analyses are evergreen; daily prices are not a buy argument.
- Possible confusion: PTC Inc. (Nasdaq: PTC, CIK 0000857005, software from Boston, called Parametric Technology Corporation until January 2013) has nothing to do with PTC Therapeutics (Nasdaq: PTCT).
About the Company
PTC Inc. ist ein Softwareunternehmen in Nord- und Südamerika, Europa und dem asiatisch-pazifischen Raum.
| Employees | 7,000 |
|---|---|
| Headquarters | Boston, MA |
| Address | 121 Seaport Boulevard, 02210 Boston, United States |
| Phone | 781 370 5000 |
| Website | ptc.com |
| IPO Date | 7. Dec 1989 |
| ISIN | US69370C1009 |
| Stock Split | 2:5 on 02/28/2006 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Neil Barua | President, CEO & Director | 1978 |
| Aaron C. Von Staats Esq. | Executive VP, General Counsel & Corporate Secretary | 1966 |
| Catherine A. Kniker | EVP, Chief Marketing & Sustainability Officer | 1966 |
| Robert Dahdah | Executive VP & Chief Revenue Officer | 1968 |
| Jennifer DiRico | Executive VP & CFO | 1985 |
| Alice Christenson | Chief Accounting Officer | – |
| Matthew Shimao | Senior Vice President of Investor Relations | – |
| Beth Conway | Executive VP & Chief People Officer | – |
| Catherine Gorecki | Senior VP of Corporate & Securities Counsel and Assistant Secretary | – |
| Amit Jain | Chief Strategy Officer | – |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 31, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.