PTC Inc. · PTC · FY2025 Q3 · Calendar Q3 2025

PTC Raises FY25 Guidance as ARR and Free Cash Flow Growth Accelerate

PTC's Q3 update supports a constructive operating thesis: constant-currency ARR and free cash flow growth improved, the go-to-market transformation showed traction, and management raised FY25 guidance. The thesis still depends on execution, including converting the pipeline, managing ServiceMax churn and turning AI product investment into adoption.

Reported After market closeNASDAQTechnology $22.36B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $1.64 Consensus $1.21
EPS surprise +35.5% Reported versus consensus
Reported revenue $643.9M Consensus $583.4M
Revenue surprise +10.4% Reported versus consensus

Market reaction

event-close to next-session close
Stock move +6.1% Event window
SPY move -0.4% Same window
Abnormal move +6.4% Stock minus SPY
Volume 1.8× Versus trailing sessions
Subsequent drift +0.1% Up to 20 sessions
PTCSPY benchmark

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Transcript intelligence

What changed

Compared with the prior quarter, management moved from lowered ARR guidance amid macro and trade-policy uncertainty to raised FY25 guidance. The current analysis also emphasizes higher win rates, a $5 million-plus opportunity pipeline, broader AI product integration and a strategic NVIDIA partnership.

Guidance delta

FY25 guidance was raised: ARR growth to 8%-9% and free cash flow to approximately $850 million; EPS guidance was updated.

Key takeaways

  • ARR grew 9.3% year over year on a constant-currency basis, while free cash flow rose 14%.
  • Management cited higher win rates, improved rep productivity and a record-size pipeline of $5 million-plus opportunities.
  • AI capabilities are being embedded across the portfolio, including Creo, Arena and ServiceMax.
  • The company highlighted continued share repurchases and debt reduction.

Management priorities

  • Execute the go-to-market transformation and vertical, outcomes-based messaging.
  • Release additional AI capabilities and publish a FY26 AI roadmap.
  • Simplify Windchill packaging and SaaS migration.
  • Continue share repurchases and debt reduction.
  • Develop physical-AI work with NVIDIA and deepen partnerships with Synopsys and Ansys.

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Earnings History

Estimate Beat Miss Match
PTC EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 3 future estimate-only quarters. Q1 '24 estimate $0.98 Q1 '24 actual $1.11, beat Q2 '24 estimate $1.23 Q2 '24 actual $1.46, beat Q3 '24 estimate $0.97 Q3 '24 actual $0.98, beat Q4 '24 estimate $1.43 Q4 '24 actual $1.54, beat Q3 '25 estimate $1.21 Q3 '25 actual $1.64, beat Q4 '25 estimate $2.27 Q4 '25 actual $3.47, beat Q1 '26 estimate $1.59 Q1 '26 actual $1.92, beat Q2 '26 estimate $2.10 Q2 '26 actual $2.69, beat Q3 '26 estimate $1.57 Q3 '26 actual $1.58, match Q4 '26 estimate $1.96 Q1 '27 estimate $1.88 Q2 '27 estimate $2.49
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Analyst Consensus ?

ConsensusHold31 ratings
Bullish1341.9%
Neutral1651.6%
Bearish26.5%

1 unmapped firm rating excluded from the percentages.

Analyst 52W Price Targets

$193.79Current
$120Low
$186.78Average
$306High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 9, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Oppenheimer Perform OutperformDowngradeOct 6, 2026
Mizuho Neutral NeutralMaintainOct 6, 2026
Citigroup Neutral NeutralMaintainOct 6, 2026
BMO Capital Market Perform OutperformDowngradeOct 6, 2026
Rosenblatt Neutral BuyDowngradeOct 5, 2026
Show 27 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $193.79. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Mizuho SecuritiesSiti Panigrahi$205$192.26 +5.8%Oct 6, 2026
BMO CapitalDaniel Jester$205$192.26 +5.8%Oct 6, 2026
Deutsche BankJohannes Schaller$205$192.26 +5.8%Oct 5, 2026
BarclaysAnalyst unavailable$205$192.45 +5.8%Oct 5, 2026
Stifel NicolausAnalyst unavailable$205$192.68 +5.8%Oct 5, 2026
See 42 more

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Company context

Snapshot as of publication

PTC Inc. operates as a global provider of software and services, with its market presence extending across the Americas, Europe, and the Asia Pacific regions. The company's business is organized into two primary divisions: Software Products and Professional Services. Among its key offerings is the ThingWorx platform, which furnishes enterprises with a suite of functionalities to drive digital innovation across their operations. These solutions are characterized by ease of creation and deployment, scalability for future demands, and their ability to accelerate value realization for customers. Another significant product, Vuforia, enables the visualization of digital information within real-world contexts and facilitates the development of augmented reality applications.…

Historical context

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:55.686058+00:00
  3. Polygon adjusted daily market bars · 2026-10-09T12:10:44.261938+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-09T12:10:44.259350+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-09. For educational purposes only; not investment advice.