The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 68 | 10.8x | 20.8x | Top tier | |
Growth | 77 | 27.7% | 6.1% | Top tier | |
Quality | 88 | 20.1% | 6.6% | Top tier | |
Safety | 82 | 0.6x | 0.7x | Top tier | |
Capital Return | 82 | — | 2.02% | Top tier | |
Momentum | 6 | -30.2% | 4.1% | Bottom tier | |
Sentiment | 83 | 12 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
PTC Inc. is one of the leading global companies in the 3D engineering design software and industrial software solutions sector, focusing on enabling digital transformation for enterprises through leading platforms such as Creo for computer-aided design (CAD), Windchill for product lifecycle management (PLM), Codebeamer for application lifecycle management (ALM), and ServiceMax for service lifecycle management (SLM). The company relies on a business model centered on software subscriptions and hybrid cloud solutions, ensuring stable and predictable recurring revenue streams by serving a wide range of critical sectors such as aerospace and defense, automotive, and advanced electronics.
In its Q2 fiscal year 2026 results, PTC's financial statements demonstrated strong financial performance, with total revenue reaching $774.3 million, and the company achieving a gross profit of $660.7 million, reflecting a very high gross margin of approximately 85.3%. Net income for the period was $590.7 million, with earnings per share (EPS) of $4.98, while constant currency Annual Recurring Revenue (ARR) grew by 8.5% to reach $2.388 billion after excluding the recently divested Kepware and ThingWorx units, placing the company's performance at the high end of its previous guidance range.
PTC stock commands a strong positive consensus among analysts with a Buy rating, and an average price target of $190.88, with analyst targets ranging from a low of $170 to a high of $210. Considering the stock's 52-week trading range of $108.5 to $219.69, it is trading at levels that reflect market confidence in its transition strategy toward cloud and AI. However, Citi's recent price target of $155 with a Neutral rating indicates divergence in some research houses' estimates regarding the pace of this growth relative to the forward P/E multiple.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
PTC completed the sale of its Kepware and ThingWorx units on March 13, 2026, receiving net after-tax cash proceeds of $375 million. This transaction did not meet the criteria for discontinued operations, meaning historical financial statements were not restated, which impacts year-over-year growth comparisons for cash flows and revenues. Management directed the entirety of these $375 million cash proceeds to execute an accelerated share repurchase program of its common stock to enhance shareholder value.
AI technologies contribute in two main ways: first, by encouraging customers to modernize and upgrade their engineering data infrastructure using Windchill+ systems, as AI cannot operate efficiently without a structured database. Second, through the intelligence layer the company is building on top of its systems, such as integrating intelligent agents in Creo, Onshape, and ServiceMax to accelerate engineering and maintenance workflows. The company plans to nearly double its AI releases in 2026, reaching 14 new releases compared to 8 in the prior year.
PTC expects constant currency annual recurring revenue (ARR) growth of 8% to 9% in Q3 fiscal 2026, which equates to net new ARR of $40 million to $55 million. For Q3 free cash flow, the company is guiding for $240 million to $245 million, with an expectation of generating $850 million for the full fiscal year. Management is confident in achieving a larger jump in Q4 due to clear visibility on deferred ARR that has already been booked.
Automated analysis for informational purposes only — not investment advice.
PTC follows a flexible capital return strategy heavily focused on common stock repurchases, expecting to buy back between $1.225 billion and $1.325 billion of its shares during the full fiscal year 2026. Additionally, the Board of Directors approved a new $2 billion repurchase program authorization that becomes active on October 1, 2026, and extends through the end of fiscal year 2028. These steps aim to reduce the company's diluted share count to a range of 115 million to 116 million shares during Q3 fiscal 2026.
PTC has achieved remarkable success in displacing competitors and growing in strategic sectors, most notably the US Army's adoption of Windchill as its official standard for PLM systems. The company also announced a significant competitive win with Hamilton Medical using Codebeamer to manage complex software requirements, in addition to its ongoing partnership with BMW in the electric and software-defined vehicle sector. These wins demonstrate the strength of the integrated portfolio and the company's ability to capture market share directly from traditional competitors.