PTC Inc.
- Open
- 114.98
- Day high
- 120.85
- Day low
- 114.88
- Prev close
- 113.61
- Volume
- 403K
- Mkt cap
- $13.9B
- P/E (TTM)
- 11.5
- EPS (TTM)
- $10.52
- P/B
- 3.6
- P/S
- 4.6
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$119K over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions mixed (13F)
PTC Inc. (PTC) is a Technology company listed on NASDAQ. The stock is down 34% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4).
PTC Inc. (PTC) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 4 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
PTC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 6, 2026 | $2.06 | $2.69 | +30.6% | $774M | +8.7% |
| Feb 4, 2026 | $1.59 | $1.92 | +20.8% | $686M | -0.5% |
| Nov 5, 2025 | $2.27 | $3.47 | +52.9% | $894M | +19.0% |
| Jul 30, 2025 | $1.21 | $1.64 | +35.5% | $644M | +10.4% |
| Apr 30, 2025 | $1.39 | $1.79 | +28.8% | $636M | +4.9% |
| Feb 5, 2025 | $0.89 | $1.10 | +23.7% | $565M | +2.0% |
| Jul 31, 2024 | $0.97 | $0.98 | +1.3% | $519M | -2.1% |
| May 1, 2024 | $1.23 | $1.46 | +18.7% | $603M | +4.4% |
| Jan 31, 2024 | $0.98 | $1.11 | +13.3% | $550M | +2.1% |
| Nov 1, 2023 | $1.14 | $1.20 | +5.3% | $547M | -2.0% |
| Jul 26, 2023 | $1.01 | $0.99 | -2.0% | $542M | -3.1% |
| Feb 1, 2023 | $1.01 | $0.99 | -2.0% | $466M | +0.3% |
PTC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 12, 2026 | CHRISTENSON ALICEofficer: Chief Accounting Officer | Sell | 816 | $145.82 |
| May 8, 2026 | CHRISTENSON ALICEofficer: Chief Accounting Officer | Tax | 370 | $147.65 |
| May 8, 2026 | CHRISTENSON ALICEofficer: Chief Accounting Officer | Grant | 1,186 | — |
| Mar 18, 2026 | Lathan Corinnadirector | Sell | 675 | $157.24 |
| Mar 16, 2026 | Pham Tracdirector | Option | 1,181 | — |
| Mar 4, 2026 | VON STAATS AARON Cofficer: EVP, Chief Legal Officer | Sell | 2,639 | $160.00 |
| Feb 12, 2026 | Katz Michaldirector | Option | 1,500 | — |
| Feb 12, 2026 | Pham Tracdirector | Option | 1,431 | — |
| Feb 12, 2026 | BERNSHTEYN ROBERTdirector | Option | 1,500 | — |
| Feb 12, 2026 | BERNSHTEYN ROBERTdirector | Grant | 1,703 | — |
| Feb 12, 2026 | LACY PAUL Adirector | Option | 1,500 | — |
| Feb 12, 2026 | CHAFFIN JANICEdirector | Grant | 1,703 | — |
| Feb 12, 2026 | VON STAATS AARON Cofficer: EVP, Chief Legal Officer | Sell | 8 | $162.23 |
| Feb 12, 2026 | Lathan Corinnadirector | Option | 1,500 | — |
| Feb 12, 2026 | Lathan Corinnadirector | Grant | 1,703 | — |
Source: PTC SEC Form 4 filings, latest May 12, 2026. For informational purposes only — not investment advice.
See the full PTC insider & 13F page →PTC Inc. company profile
Overview
PTC Inc. (NASDAQ:PTC) is a Boston-based software company founded in 1985 that provides digital transformation solutions for industrial companies. Originally known as Parametric Technology Corporation, the company rebranded to PTC Inc. in 2013. PTC has evolved from a traditional computer-aided design (CAD) software provider into a comprehensive platform company offering product lifecycle management (PLM), application lifecycle management (ALM), service lifecycle management (SLM), Internet of Things (IoT), and augmented reality (AR) solutions. The company went public in 1989 and has undergone significant transformation over the past decade, transitioning from perpetual license sales to a subscription-based software-as-a-service (SaaS) model while expanding its product portfolio through strategic acquisitions.
Business
PTC operates in the industrial software market, providing digital transformation tools that help manufacturers and industrial companies design, develop, manufacture, and service their products more efficiently. The company's solutions enable what it calls the "digital thread" - connecting all aspects of product development and manufacturing through integrated software platforms. The company operates through two main segments: Software Products (representing approximately 90% of revenue) and Professional Services (approximately 10% of revenue). Within Software Products, PTC offers five core product categories: **Computer-Aided Design (CAD)** solutions, primarily through Creo, which enables engineers to create 3D digital models, simulate product performance, and test designs virtually before physical prototyping. This represents roughly one-third of the company's annual recurring revenue (ARR). **Product Lifecycle Management (PLM)** solutions, anchored by Windchill, which manages all product-related data throughout a product's lifecycle from initial concept to end-of-life. This segment has been growing rapidly and represents approximately 45% of total ARR. **Application Lifecycle Management (ALM)** through Codebeamer, which helps companies manage software development within their products, particularly important as products become increasingly software-driven. **Service Lifecycle Management (SLM)** via ServiceMax, which optimizes field service operations and maintenance scheduling for complex industrial equipment. **Industrial Internet of Things and Augmented Reality** solutions through ThingWorx platform and Vuforia, enabling companies to connect physical products to digital systems and create AR experiences for training, maintenance, and operations. Additionally, PTC offers cloud-native solutions including Onshape (browser-based CAD) and Arena (cloud PLM), which represent the company's next-generation SaaS offerings designed for modern collaborative product development.
Revenue model
PTC generates revenue primarily through subscription-based software licenses, with over 95% of new bookings now coming from subscription arrangements rather than traditional perpetual licenses. The company's business model centers on annual recurring revenue (ARR), which reached $2.326 billion in Q2 2025, growing at approximately 10% year-over-year. Revenue streams include software subscriptions (the vast majority), professional services for implementation and training, and maintenance and support services. Customers pay annual or multi-year subscription fees to access PTC's software platforms, with pricing typically based on the number of users, modules deployed, and level of functionality required. The company's primary customers are industrial manufacturers across sectors including automotive, aerospace and defense, electronics, medical devices, and industrial machinery. These enterprises typically make substantial multi-year commitments, with many deals ranging from hundreds of thousands to millions of dollars annually. PTC has built strong relationships with large industrial companies like Volkswagen, Microsoft, and major aerospace manufacturers. Several factors influence PTC's margins and profitability. **Positive margin drivers** include the ongoing transition to higher-margin SaaS subscriptions, operational efficiency improvements from organizational restructuring, and cross-selling opportunities across PTC's integrated product portfolio. The company's digital thread strategy allows it to sell multiple complementary solutions to existing customers, increasing average contract values. **Negative margin pressures** include continued investment in research and development to maintain competitive positioning, particularly in artificial intelligence capabilities, costs associated with the ongoing SaaS transformation, and macroeconomic uncertainties that can delay customer purchasing decisions. The company also faces pricing pressure from competitors and must balance growth investments with profitability targets, aiming for 40% operating margins by fiscal 2025.
Competitive moat
PTC's competitive moat stems from several interconnected factors, though it operates in a highly competitive market with both established players and emerging threats. The company's primary moat lies in its **integrated digital thread ecosystem**, where customers become deeply embedded across multiple PTC solutions (CAD, PLM, ALM, SLM, IoT) that work together seamlessly. This creates significant switching costs, as replacing PTC would require customers to overhaul their entire product development and manufacturing infrastructure. **Customer entrenchment** represents another key moat element. Industrial companies invest months or years implementing PTC's solutions, training employees, and integrating the software with existing systems. The mission-critical nature of product development tools makes customers hesitant to switch providers, especially given the complexity and risk involved in migrating years of product data and established workflows. PTC also benefits from **domain expertise and industry specialization**. The company has developed deep vertical knowledge in automotive, aerospace, electronics, and other industrial sectors, allowing it to offer industry-specific solutions that generic software providers cannot match. This specialization creates barriers for new entrants who would need years to develop equivalent industry expertise. However, PTC's moat faces significant challenges. **Competitive pressure** comes from well-funded rivals including Dassault Systèmes (SOLIDWORKS, CATIA), Siemens (NX, Teamcenter), Autodesk, and cloud-native startups. These competitors often have deeper resources or more modern architectures. **Technology disruption** poses another threat, particularly from cloud-native solutions that offer better user experiences and lower implementation costs. The rise of artificial intelligence and machine learning in design and manufacturing could also disrupt traditional workflows, potentially favoring companies with more advanced AI capabilities. The strength of PTC's moat varies by product category - it's strongest in PLM where switching costs are highest, and weakest in newer areas like IoT and AR where the market remains fragmented and customer relationships are less entrenched.
Risks & safety
PTC demonstrates a moderate margin of safety with mixed financial health indicators that require careful monitoring. **Liquidity and Solvency:** - Cash position of $235 million as of Q2 2025, down from $266 million in Q4 2024 - Current ratio of 0.99, indicating tight short-term liquidity with current liabilities slightly exceeding current assets - Strong free cash flow generation of $279 million in Q2 2025, providing operational flexibility - Total debt of approximately $1.7 billion with debt-to-equity ratio of 0.46, manageable but significant - Company recently paid down $500 million in senior notes, improving leverage ratio to 1.5x **Valuation Metrics:** - Trading at 28.6x P/E ratio, elevated for a mature software company - EV/EBITDA of 19.3x, reflecting premium valuation expectations - Price-to-book ratio of 5.5x, indicating substantial premium to tangible assets - Graham number suggests potential overvaluation relative to conservative metrics **Other Considerations:** - Subscription-based revenue model provides predictable cash flows and high customer retention - ARR growth of 10% demonstrates continued business momentum despite macro headwinds - Ongoing SaaS transformation creates near-term margin pressure but should improve long-term profitability - Management's conservative guidance adjustment reflects prudent planning amid economic uncertainty
Recent development
Over the past several years, PTC has undergone significant strategic transformation focused on three key areas: transitioning to a subscription-based SaaS model, expanding through strategic acquisitions, and implementing artificial intelligence across its product portfolio. The **SaaS transformation** represents PTC's most fundamental strategic shift. The company has moved from traditional perpetual software licenses to subscription-based recurring revenue, with over 95% of new bookings now coming from subscriptions. This transition includes launching cloud-native versions of core products like Windchill+ and continuing to develop Onshape and Arena as fully cloud-based solutions. While this transition temporarily pressures margins, it creates more predictable revenue streams and stronger customer relationships. **Strategic acquisitions** have significantly expanded PTC's capabilities and market reach. The company acquired ServiceMax to enter the service lifecycle management market, Codebeamer to strengthen application lifecycle management for software-driven products, and most recently IncQuery Labs to accelerate AI development. These acquisitions support PTC's "digital thread" strategy of providing integrated solutions across the entire product lifecycle. **Artificial intelligence integration** has become a major focus, with PTC launching AI capabilities across its product lines including Windchill AI, Codebeamer 3.0 with AI features, ServiceMax AI for service scheduling, and Onshape AI Advisor. The company is moving from product-specific AI development to a more centralized approach to ensure consistency and maximize impact across the portfolio. **Organizational restructuring** has been another key development, with PTC implementing a vertical go-to-market approach focused on five key industries: industrial products, federal/aerospace/defense, electronics, automotive, and medical technology. The company eliminated COO and CRO roles while hiring new leadership to drive this vertical specialization. This restructuring aims to improve sales effectiveness, increase industry expertise, and enhance cross-selling capabilities across PTC's integrated product portfolio.
PTC company profile · for informational purposes only — not investment advice.
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