Industrial software maker PTC beats Q4 revenue expectations

PTC

05/11/2025 21:09

Overview

PTC Q4 revenue grows 43% yr/yr, beating analyst expectations

Adjusted EPS for Q4 beats consensus, reflecting strong financial performance

Company to increase share repurchases under $2 bln authorization, $200 mln in Q1 2026

Outlook

PTC expects FY26 constant currency ARR growth of 7% to 9%

Company anticipates FY26 operating cash flow of ~$1.03 bln

PTC plans $200 mln share repurchase in Q126

Result Drivers

DIVESTITURE STRATEGY - PTC divested Kepware and ThingWorx to focus on CAD, PLM, ALM, and SLM for its Intelligent Product Lifecycle vision

CASH FLOW RECORD - Co achieved record operating and free cash flow growth of 16%, driven by strategic focus

AI-DRIVEN GROWTH - PTC continues to build a foundation for AI-driven and verticalized growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$894 mln
$750.84 mln (16 Analysts)
Q4 Adjusted EPS
Beat
$3.47
$2.27 (16 Analysts)
Q4 EPS
$2.94
Q4 Operating Margin
49.00%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for PTC Inc is $230.50, about 16.7% above its November 4 closing price of $192.03

The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 30 three months ago

Press Release: ID:nPn1p0bLja

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)