PTC Inc
NASDAQ:PTC
PTC Inc
In the bustling world of software solutions, PTC Inc. has carved a distinctive niche for itself by focusing on high-impact digital transformation within the industrial sector. Founded in 1985 and headquartered in Boston, PTC started its journey with a robust CAD software offering, which quickly set the company apart as a leader in design innovation. However, as industries evolved, so did PTC. The company adeptly transitioned from its roots in CAD to embrace a broader spectrum of technologies that propel industrial companies into the digital age. With an eye on the future, PTC invested heavily in areas like the Internet of Things (IoT) and Augmented Reality (AR), providing a comprehensive suite of solutions tailor-made for modern manufacturing, engineering, and service challenges.
Central to PTC’s business model is its ability to blend traditional engineering software with cutting-edge digital innovations to create a seamless ecosystem for its clients. By offering products like ThingWorx for IoT applications and Vuforia for AR experiences, PTC empowers industries to optimize their operations, reduce downtime, and enhance product quality. These solutions are not only transformative but are also offered through subscription-based pricing, ensuring a steady and predictable revenue stream. PTC’s strategic focus on recurring revenue through digital solutions caters aptly to companies intent on thriving in Industry 4.0, placing PTC at the forefront of the industrial software revolution.
In the bustling world of software solutions, PTC Inc. has carved a distinctive niche for itself by focusing on high-impact digital transformation within the industrial sector. Founded in 1985 and headquartered in Boston, PTC started its journey with a robust CAD software offering, which quickly set the company apart as a leader in design innovation. However, as industries evolved, so did PTC. The company adeptly transitioned from its roots in CAD to embrace a broader spectrum of technologies that propel industrial companies into the digital age. With an eye on the future, PTC invested heavily in areas like the Internet of Things (IoT) and Augmented Reality (AR), providing a comprehensive suite of solutions tailor-made for modern manufacturing, engineering, and service challenges.
Central to PTC’s business model is its ability to blend traditional engineering software with cutting-edge digital innovations to create a seamless ecosystem for its clients. By offering products like ThingWorx for IoT applications and Vuforia for AR experiences, PTC empowers industries to optimize their operations, reduce downtime, and enhance product quality. These solutions are not only transformative but are also offered through subscription-based pricing, ensuring a steady and predictable revenue stream. PTC’s strategic focus on recurring revenue through digital solutions caters aptly to companies intent on thriving in Industry 4.0, placing PTC at the forefront of the industrial software revolution.
ARR Growth: Constant currency ARR excluding Kepware and ThingWorx grew 9% year-over-year to $2.341 billion; including them, ARR rose 8.4% to $2.5 billion.
Cash Flow: Free cash flow increased 13% year-over-year to $267 million, including $10 million in divestiture costs.
Guidance Raised: Full-year revenue guidance was raised to $2.675–$2.940 billion and EPS to $6.69–$9.15, reflecting Q1 results above the previous guidance range.
Deferred ARR Momentum: Record-setting levels of deferred ARR under contract; triple last year's Q4 amount is expected to start converting in Q4 and into 2027.
AI Integration: Continued rapid rollout of AI features embedded directly into core products like Windchill and Codebeamer, with more releases planned.
SaaS Adoption: Strong momentum for SaaS products (Windchill+, Creo+), with customers typically seeing 1.5–2.5x ARR uplift when migrating from on-premises solutions.
Share Buybacks: PTC is planning $1.1–$1.3 billion in share repurchases in fiscal 2026, boosted by proceeds from the Kepware and ThingWorx divestiture.
Go-to-Market Transformation: Higher seller productivity, more large deals, and growing competitive displacements are improving long-term growth visibility.
