Ptc Inc. (PTC)

Price$140.30Cached quoteAs of 2026-10-01 03:59 UTC

AI: Fair-priced

Price checkPTC now looks reasonably valued, with solid recurring growth offset by a still-demanding cash-flow multiple.

PTC traded at $153.71 on August 20, 2026, implying a market value near $17 billion using June's 110.7 million shares. Management expects fiscal 2026 free cash flow—cash left after running and investing in the business—of about $850 million, so the stock offers roughly a 5% cash yield. It also guides to adjusted earnings of $7.87-$8.42 per share, putting the price near 19 times the midpoint. With recurring contract value growing about 9%, that valuation looks reasonable rather than clearly cheap.

Big pictureRecurring software growth and rising cash generation are strong, even though reported revenue can move unevenly between quarters.

Revenue rose from $1.46 billion in fiscal 2020 to $2.74 billion in 2025, while operating cash flow climbed from $234 million to $868 million. In the latest quarter, recurring contract value excluding divested businesses grew 9.1% at constant exchange rates, and free cash flow rose 3% to $249 million. Reported quarterly revenue fell 7%, partly because software accounting can shift revenue timing between periods. PTC's industrial customers can delay projects during downturns, but subscription contracts and low customer departures make cash generation less cyclical than traditional manufacturing spending.

Business strengthHigh recurring revenue and aggressive buybacks strengthen each share, while modest debt remains manageable.

At June 2026, PTC had $351 million of cash and $1.40 billion of debt, leaving about $1.05 billion of net debt, modest relative to its cash generation. Capital allocation has become unusually aggressive: PTC repurchased about $525 million of shares in the third quarter after roughly $625 million in the second. Shares outstanding fell from 119.5 million in September 2025 to 110.7 million by June 2026, more than offsetting stock compensation. Management now expects about $1.63 billion of fiscal 2026 repurchases, materially increasing each remaining shareholder's ownership.

What could change the storyFaster artificial-intelligence adoption could create upside, while stalled recurring growth would make today’s valuation less attractive.

The bull case is that manufacturers need cleaner product data and PTC's design and lifecycle software becomes a foundation for artificial-intelligence tools. Management raised fiscal 2026 recurring-growth guidance to 9% to 9.5% and expects low-double-digit growth in fiscal 2027. The bear case is that industrial customers delay large software expansions or competitors capture the artificial-intelligence opportunity. At about 19 times adjusted earnings and roughly 20 times guided free cash flow, today's price requires durable high-single-digit growth and continued strong retention, but not extraordinary growth.

AI: News

Growth guidance raisedStronger recurring software demand led PTC to raise its annual growth outlook despite lower reported quarterly revenue.

On July 29, 2026, PTC reported 9.1% constant-currency recurring contract growth excluding divested businesses, above its 8%-9% guidance, while free cash flow of $249 million also beat its target. Revenue fell 7% to $600 million because of divestitures and contract timing. PTC raised full-year recurring-growth guidance to 9%-9.5% and increased revenue and earnings forecasts. Trading around the release was volatile, so no single share-price move can be reliably attributed solely to the results.

Buybacks accelerate sharplyPTC used its falling share price to retire stock aggressively, increasing the ownership represented by remaining shares.

On July 29, PTC disclosed roughly $525 million of third-quarter repurchases, more than twice its previously targeted amount, after management judged the valuation unusually compressed. That followed approximately $625 million used for repurchases in the March quarter. The company lifted expected fiscal 2026 buybacks to about $1.63 billion. This matters directly to per-share value because June shares outstanding were about 7% below September 2025 levels, although repurchases create value only when the shares are bought below their long-term worth.

Industrial software businesses soldSelling Kepware and ThingWorx sharpened PTC’s product focus and supplied additional cash for share repurchases.

On March 16, 2026, PTC completed the sale of Kepware and ThingWorx to TPG, receiving $523 million of cash proceeds and expecting about $375 million after taxes and transaction costs. PTC committed those net proceeds to an accelerated share repurchase. The divestiture reduced reported revenue and cash flow during fiscal 2026, complicating year-over-year comparisons, but management argues that concentrating on product design and lifecycle software creates a more coherent growth platform. The long-term benefit depends on the retained businesses growing faster than the assets sold.

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Total cash / debt

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Revenue	$2.74B	$2.30B	$2.10B	$1.93B	$1.81B	$1.46B	$1.26B	$1.24B	$1.16B	$1.14B	$1.26B	$1.36B	$1.29B	$1.26B	$1.17B	$1.01B	$938.2M	$1.07B
Gross profit	$2.29B	$1.85B	$1.66B	$1.55B	$1.44B	$1.12B	$930.3M	$915.3M	$835.5M	$814.9M	$920.5M	$983.3M	$920.5M	$883.6M	$810.2M	$702.4M	$658.4M	$769.7M
Gross margin	83.76%	80.65%	78.97%	80.04%	79.46%	77.08%	74.09%	73.71%	71.78%	71.45%	73.33%	72.46%	71.16%	70.36%	69.43%	69.54%	70.18%	71.91%
Research & development	$457.7M	$433.0M	$394.4M	$338.8M	$299.9M	$256.6M	$246.9M	$249.8M	$236.0M	$229.3M	$227.5M	$226.5M	$221.9M	$215.0M	$211.4M	$201.6M	$188.5M	$182.0M
Operating expenses	$1.31B	$1.27B	$1.20B	$1.10B	$1.06B	$913.3M	$867.2M	$842.7M	$793.8M	$851.9M	$878.9M	$786.7M	$793.2M	$755.5M	$1.05B	$935.3M	$918.9M	$945.1M
Operating income	$982.4M	$588.1M	$458.5M	$447.4M	$380.7M	$210.9M	$63.0M	$72.6M	$41.8M	−$37.0M	$41.6M	$196.6M	$127.3M	$128.1M	$117.1M	$74.8M	$19.3M	$125.2M
Operating margin	35.86%	25.58%	21.86%	23.14%	21.07%	14.46%	5.02%	5.85%	3.59%	−3.25%	3.32%	14.49%	9.84%	10.20%	10.04%	7.40%	2.06%	11.70%
EBITDA	$1.08B	$696.2M	$563.2M	$535.1M	$466.0M	$291.7M	$140.9M	$160.0M	$128.5M	$49.5M	$126.0M	$273.9M	$203.9M	$194.6M	$179.5M	$137.0M	$80.9M	$185.3M
EBITDA margin	39.61%	30.29%	26.86%	27.68%	25.79%	20.00%	11.22%	12.89%	11.04%	4.34%	10.04%	20.18%	15.76%	15.49%	15.38%	13.56%	8.62%	17.31%
Net income	$734.0M	$376.3M	$245.5M	$313.1M	$476.9M	$130.7M	−$27.5M	$52.0M	$6.2M	−$54.5M	$47.6M	$160.2M	$143.8M	−$35.4M	$85.4M	$24.4M	$31.5M	$79.7M
Net profit margin	26.80%	16.37%	11.71%	16.19%	26.39%	8.96%	−2.19%	4.19%	0.54%	−4.78%	3.79%	11.81%	11.11%	−2.82%	7.32%	2.41%	3.36%	7.45%
Basic EPSper basic share	$6.12	$3.14	$2.07	$2.67	$4.08	$1.13	-$0.23	$0.45	$0.05	-$0.48	$0.41	$1.36	$1.20	-$0.30	$0.73	$0.21	$0.27	$0.70
Diluted EPSper diluted share	$6.08	$3.12	$2.06	$2.65	$4.03	$1.12	-$0.23	$0.44	$0.05	-$0.48	$0.41	$1.34	$1.19	-$0.30	$0.71	$0.20	$0.27	$0.68

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

11.78%of listed shares

T. Rowe Price Investment Management, Inc.13.05M shares · Jun 30, 2026

View holders

Top 20 reported holders of PTC
Holder	% owned
T. Rowe Price Investment Management, Inc.	11.78%13.05M shares
BlackRock, Inc.	10.39%11.5M shares
VANGUARD CAPITAL MANAGEMENT LLC	6.82%7.55M shares
STATE STREET CORP	5.83%6.45M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	5.17%5.73M shares
GEODE CAPITAL MANAGEMENT, LLC	3.39%3.75M shares
Jupiter Topco LLC	3.33%3.68M shares
Pictet Asset Management Holding SA	3.32%3.68M shares
NORGES BANK	2.83%3.14M shares
Invesco Ltd.	2.42%2.68M shares
CITADEL ADVISORS LLC	2.05%2.27M shares
Standard Investments LLC	1.64%1.81M shares
MORGAN STANLEY	1.38%1.53M shares
VAN LANSCHOT KEMPEN INVESTMENT MANAGEMENT N.V.	1.34%1.48M shares
NORTHERN TRUST CORP	1.28%1.42M shares
JANE STREET GROUP, LLC	1.14%1.26M shares
PRICE T ROWE ASSOCIATES INC /MD/	1.06%1.17M shares
UBS AM, a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC	1.01%1.12M shares
FERNBRIDGE CAPITAL MANAGEMENT LP	0.99%1.1M shares
DIMENSIONAL FUND ADVISORS LP	0.94%1.04M shares

Percentages use 110.72M shares of this listed class outstanding on Jun 30, 2026.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)52$21.74M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 12, 2026Form 4	CHRISTENSON ALICEChief Accounting Officer	SellCommon Stock	816	$145.83	$119.0K	1.3K
Mar 16, 2026Form 4 · 10b5-1	Lathan CorinnaDirector	SellCommon Stock	675	$157.24	$106.1K	8.4K
Mar 3, 2026Form 4 · 10b5-1	VON STAATS AARON CEVP, Chief Legal Officer	SellCommon Stock	2.6K	$160.00	$422.2K	19.6K
Feb 11, 2026Form 4 · 10b5-1	VON STAATS AARON CEVP, Chief Legal Officer	SellCommon Stock	8	$162.23	$1.3K	22.2K
Feb 11, 2026Form 4 · 10b5-1	VON STAATS AARON CEVP, Chief Legal Officer	SellCommon Stock	232	$161.06	$37.4K	22.2K

Review ownership filings at SEC.gov ↗

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Ptc Inc. (PTC)

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