A Business at a Glance
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PTC INC.
PTC
$14.3B
Mkt Cap
$118.52
+4.84%
PTC INC. (PTC) has a current P/E ratio of 17.5, compared to its historical median P/E of 49.2. The stock is currently considered Cheap based on its historical valuation range.
PTC INC. (PTC) has a 5-year average return on invested capital (ROIC) of 12.4%. This indicates solid capital allocation.
PTC INC. (PTC) has a market capitalization of $13.7B. It is classified as a large-cap stock.
PTC INC. (PTC) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 7.13%.
Based on historical P/E analysis, PTC INC. (PTC) appears cheap. The current P/E of 17.5 is 65% below its historical median of 49.2. The estimated fair value CAGR (P/E method) is 42.8%.
PTC INC. (PTC) operates in the Services-Prepackaged Software industry, within the Technology sector.
PTC INC. (PTC) reported annual revenue of $2.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
PTC is a global software company headquartered in Boston with over 7,000 employees serving more than 30,000 customers across industrials, aerospace and defense, electronics and high tech, automotive, and medical technology and life sciences verticals. The company operates on a subscription-based business model with 95% recurring revenue, delivering the Intelligent Product Lifecycle through a portfolio of PLM (Windchill, Arena), CAD (Creo, Onshape), ALM (Codebeamer, pure::variants), SLM (ServiceMax), and service parts management (Servigistics) solutions that enable customers to establish product data foundations, democratize data access across enterprises, and drive cross-functional collaboration and AI-driven transformation. PTC's unit economics are characterized by high customer retention and engagement driven by the subscription model, with approximately 75% of sales generated through a direct sales force targeting large accounts and the remainder through third-party resellers serving small- and medium-size businesses, while growth is primarily driven by existing customer expansion, multi-product adoption, and commercial optimization initiatives. The company competes with large established players including Autodesk, Dassault Systèmes, Siemens, IBM, Oracle, SAP, and others across specific functional areas, and protects its intellectual property through copyrights, trademarks, patents, and trade secret protections.
【Disciplined growth execution】 Management is focused on delivering consistent ARR growth through improved go-to-market execution and leveraging deferred ARR visibility into fiscal 2027 and beyond, with confidence in the factors within their control despite macro uncertainty. The company is building long-term durable contracts with customers and structuring deals for multi-year benefit, with the divestiture of Kepware and ThingWorx completed in March 2026 allowing PTC to concentrate fully on its intelligent product lifecycle vision. Management expects to see growth acceleration in the second half of fiscal 2026 and into fiscal 2027 as deferred ARR converts and the go-to-market transformation continues to mature, while maintaining disciplined capital allocation with significant share repurchases and continued investment in R&D around product innovation and AI-driven capabilities. The company is seeing strength in electronics and high tech verticals and expects the benefits of elevated C-level customer engagement and AI product releases to materialize more meaningfully in fiscal 2026 and beyond.
| Metric | Target | Period |
|---|---|---|
| Constant currency ARR growth (excluding Kepware and ThingWorx) | 7.5%-9.5% | FY2026 |
| Free cash flow | $850 million | FY2026 |
| Revenue | $2.580 billion-$2.820 billion | FY2026 |
| Non-GAAP EPS | $6.65-$8.90 | FY2026 |
| Constant currency ARR growth (excluding Kepware and ThingWorx) | 8%-9% | Q3 FY2026 |
| Share repurchase | $1.225 billion-$1.325 billion | FY2026 |
| Share repurchase authorization | $2 billion | October 1, 2026 through end of FY2028 |
Constant currency ARR growth (excluding Kepware and ThingWorx) (FY2026): “In fiscal 2026, for constant currency ARR, excluding Kepware and ThingWorx, we continue to expect growth of approximately 7.5%-9.5%.”
Free cash flow (FY2026): “We expect to generate $850 million in free cash flow in fiscal 2026.”
Revenue (FY2026): “we are raising our fiscal 2026 revenue guidance to $2.580 billion-$2.820 billion”
Non-GAAP EPS (FY2026): “we are raising our non-GAAP EPS guidance range to $6.65-$8.90”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 3.0B | 2.7B | 2.3B | 2.1B | 1.9B | 1.8B |
| Net Income | 1.2B | 734M | 376M | 246M | 313M | 477M |
| EPS | $10.60 | $6.08 | $3.12 | $2.06 | $2.65 | $4.03 |
| Free Cash Flow | 928M | 857M | 736M | 587M | 416M | 344M |
| ROIC | 19.9% | 17.1% | 10.8% | 9.1% | 10.8% | 14.3% |
| Gross Margin | 84.7% | 65.1% | 59.3% | 79.0% | 56.0% | 79.5% |
| Debt/Equity | 0.31 | 0.36 | 0.54 | 0.63 | 0.59 | 0.71 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 1.2B | 982M | 588M | 458M | 447M | 381M |
| Operating Margin | 38.7% | 35.9% | 25.6% | 21.9% | 23.1% | 21.1% |
| ROE | 32.3% | 20.9% | 12.8% | 9.9% | 14.4% | 27.4% |
| Shares Outstanding | 115M | 121M | 121M | 119M | 118M | 118M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 1.4B | 1.3B | 1.1B | 1.2B | 1.2B | 1.3B | 1.5B | 1.8B | 1.9B | 2.1B | 2.3B | 2.7B | 3.0B |
| Gross Margin | 72.5% | 73.3% | 71.4% | 71.8% | 73.7% | 74.1% | 77.1% | 79.5% | 56.0% | 79.0% | 59.3% | 65.1% | 84.7% |
| R&D | 226M | 228M | 229M | 236M | 250M | 247M | 257M | 300M | 339M | 394M | 433M | 458M | 475M |
| SG&A | 132M | 159M | 146M | 145M | 143M | 128M | 160M | 206M | 205M | 234M | 232M | 226M | 280M |
| EBIT | 197M | 42M | -37M | 42M | 73M | 63M | 211M | 381M | 447M | 458M | 588M | 982M | 1.2B |
| Op. Margin | 14.5% | 3.3% | -3.2% | 3.6% | 5.8% | 5.0% | 14.5% | 21.1% | 23.1% | 21.9% | 25.6% | 35.9% | 38.7% |
| Net Income | 160M | 48M | -54M | 6.2M | 52M | -27M | 131M | 477M | 313M | 246M | 376M | 734M | 1.2B |
| Net Margin | 11.8% | 3.8% | -4.8% | 0.5% | 4.2% | -2.2% | 9.0% | 26.4% | 16.2% | 11.7% | 16.4% | 26.8% | 41.6% |
| Non-Recurring | 28M | 43M | 76M | 7.9M | 4.8M | 49M | 27M | 2.1M | 62M | 884K | 802K | 16M | 16M |
| Returns on Capital | |||||||||||||
| ROIC | 16.3% | 2.8% | -3.5% | 2.5% | 5.8% | 2.7% | 11.0% | 14.3% | 10.8% | 9.1% | 10.8% | 17.1% | 19.9% |
| ROE | 18.0% | 5.5% | -6.4% | 0.7% | 5.9% | -2.6% | 9.9% | 27.4% | 14.4% | 9.9% | 12.8% | 20.9% | 32.3% |
| ROA | 8.0% | 2.2% | -2.4% | 0.3% | 2.2% | -1.1% | 4.3% | 12.1% | 6.8% | 4.5% | 5.9% | 11.3% | 19.1% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 305M | 180M | 183M | 135M | 248M | 285M | 234M | 369M | 435M | 611M | 750M | 868M | 939M |
| Free Cash Flow | 279M | 149M | 157M | 110M | 212M | 221M | 214M | 344M | 416M | 587M | 736M | 857M | 928M |
| Owner Earnings | 176M | 45M | 31M | -28M | 77M | 121M | 38M | 106M | 173M | 300M | 418M | 549M | 602M |
| CapEx | 25M | 31M | 26M | 25M | 36M | 64M | 20M | 25M | 19M | 24M | 14M | 11M | 10M |
| Maint. CapEx | 77M | 84M | 87M | 87M | 87M | 78M | 81M | 85M | 88M | 105M | 108M | 103M | 101M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 77M | 84M | 87M | 87M | 87M | 78M | 81M | 85M | 88M | 105M | 108M | 103M | 101M |
| CapEx/OCF | 8.3% | 17.0% | 14.3% | 18.8% | 14.5% | 22.6% | 8.6% | 6.7% | 4.5% | 3.9% | 1.9% | 1.3% | 1.1% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 225M | 65M | 0 | 51M | 1.1B | 115M | 0 | 30M | 125M | 0 | 0 | 300M | 976M |
| Buyback Yield | 5.1% | 1.8% | N/A | 0.7% | 8.8% | 1.4% | N/A | 0.2% | 1.0% | N/A | N/A | 1.2% | 7.1% |
| Stock-Based Comp | 51M | 50M | 66M | 77M | 83M | 86M | 115M | 177M | 175M | 206M | 223M | 216M | 235M |
| Debt Repayment | 7.9M | 0 | 6.9M | 6.9M | 0 | 0 | 15M | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | 293M | 963M | 1.2B | 382M | 327M | 342M | 671M | 1.1B | 1.1B | 1.4B | 1.5B | 1.2B | 759M |
| Cash & Equiv. | 294M | 273M | 278M | 280M | 260M | 270M | 275M | 327M | 272M | 288M | 266M | 184M | 439M |
| Long-Term Debt | 587M | 618M | 752M | 712M | 643M | 669M | 1.0B | 1.4B | 1.4B | 1.7B | 1.2B | 1.2B | 1.2B |
| Debt/Equity | 0.69 | 1.44 | 1.79 | 0.80 | 0.74 | 0.56 | 0.70 | 0.71 | 0.59 | 0.63 | 0.54 | 0.36 | 0.31 |
| Interest Coverage | 24.1 | 2.8 | -1.2 | 1.0 | 1.7 | 1.5 | 2.8 | 7.5 | 8.2 | 3.5 | 4.9 | 12.8 | 17.1 |
| Equity | 854M | 860M | 843M | 885M | 875M | 1.2B | 1.4B | 2.0B | 2.3B | 2.7B | 3.2B | 3.8B | 3.9B |
| Total Assets | 2.2B | 2.2B | 2.3B | 2.4B | 2.3B | 2.7B | 3.4B | 4.5B | 4.7B | 6.3B | 6.4B | 6.6B | 6.5B |
| Total Liabilities | 1.3B | 1.3B | 1.5B | 1.5B | 1.5B | 1.5B | 1.9B | 2.5B | 2.4B | 3.6B | 3.2B | 2.8B | 2.7B |
| Intangibles | 337M | 291M | 310M | 258M | 200M | 170M | 238M | 379M | 383M | 941M | 897M | 825M | 783M |
| Retained Earnings | -650M | -603M | -657M | -651M | -599M | -191M | -62M | 415M | 728M | 973M | 1.3B | 2.1B | 2.8B |
| Working Capital | 106M | 87M | -12M | -12M | -101M | 144M | 153M | 294M | 276M | -394M | -368M | 146M | 285M |
| Current Assets | 732M | 705M | 643M | 667M | 634M | 783M | 833M | 1.1B | 1.1B | 1.3B | 1.3B | 1.4B | 1.5B |
| Current Liabilities | 627M | 617M | 655M | 679M | 735M | 638M | 681M | 779M | 792M | 1.7B | 1.7B | 1.2B | 1.2B |
| Per Share Data | |||||||||||||
| EPS | 1.34 | 0.41 | -0.48 | 0.05 | 0.44 | -0.23 | 1.12 | 4.03 | 2.65 | 2.06 | 3.12 | 6.08 | 10.60 |
| Owner EPS | 1.48 | 0.39 | 0.27 | -0.23 | 0.66 | 1.01 | 0.32 | 0.90 | 1.46 | 2.51 | 3.47 | 4.55 | 5.21 |
| Book Value | 7.14 | 7.42 | 7.43 | 7.10 | 7.40 | 10.07 | 12.33 | 17.23 | 19.43 | 22.46 | 26.65 | 31.69 | 33.42 |
| Cash Flow/Share | 2.55 | 1.55 | 1.62 | 1.08 | 2.10 | 2.39 | 2.00 | 3.12 | 3.68 | 5.12 | 6.22 | 7.19 | 11.67 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 119.5M | 116.0M | 113.5M | 124.8M | 118.2M | 119.4M | 116.7M | 118.3M | 118.1M | 119.2M | 120.6M | 120.7M | 115.5M |
| Valuation | |||||||||||||
| P/E Ratio | 27.3 | 77.3 | N/A | N/A | 241.3 | N/A | 74.0 | 30.0 | 40.1 | 68.5 | 58.4 | 33.4 | 11.2 |
| P/FCF | 15.7 | 24.6 | 32.2 | 63.7 | 59.3 | 36.5 | 45.3 | 41.6 | 30.2 | 28.7 | 29.9 | 28.6 | 14.7 |
| EV/EBIT | 22.4 | 97.9 | N/A | 198.5 | 186.6 | 133.5 | 49.2 | 39.7 | 29.8 | 39.2 | 40.3 | 25.8 | 12.5 |
| Price/Book | 5.1 | 4.3 | 6.0 | 7.9 | 14.3 | 6.7 | 6.7 | 7.0 | 5.5 | 6.3 | 6.8 | 6.4 | 3.5 |
| Price/Sales | 15.2 | 3.4 | 3.6 | 5.6 | 7.6 | 8.1 | 6.0 | 8.2 | 7.0 | 7.4 | 9.0 | 8.0 | 4.6 |
| FCF Yield | 6.4% | 4.1% | 3.1% | 1.6% | 1.7% | 2.7% | 2.2% | 2.4% | 3.3% | 3.5% | 3.3% | 3.5% | 6.8% |
| Market Cap | 4.4B | 3.7B | 5.1B | 7.0B | 12.5B | 8.0B | 9.7B | 14.3B | 12.5B | 16.8B | 22.0B | 24.5B | 13.7B |
| Avg. Price | 35.42 | 36.73 | 35.86 | 52.53 | 79.89 | 84.68 | 75.33 | 125.53 | 113.80 | 130.57 | 172.02 | 181.97 | 118.52 |
| Year-End Price | 36.57 | 31.71 | 44.51 | 56.03 | 106.19 | 67.39 | 82.90 | 121.00 | 106.19 | 141.20 | 182.18 | 202.96 | 118.52 |
PTC INC. passes 8 of 9 quality checks, indicating strong fundamentals.
PTC INC. trades at 17.5x trailing earnings, compared to its 15-year median P/E of 49.2x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 15.9x vs a median of 34.3x. The company's 5-year average ROIC is 12.4% with a gross margin of 67.8%. Total shareholder yield (buybacks) is 7.1%. At current prices, the estimated annualized return to fair value is +25.3%.
PTC INC. (PTC) has a net profit margin of 26.8%. This is a strong margin indicating high profitability.
PTC INC. (PTC) generated $857 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
PTC INC. (PTC) has a debt-to-equity ratio of 0.36. This indicates a conservatively financed balance sheet.
PTC INC. (PTC) reported earnings per share (EPS) of $6.08 in its most recent fiscal year.
PTC INC. (PTC) has a return on equity (ROE) of 20.9%. This indicates the company generates strong returns for shareholders.
PTC INC. (PTC) has a 5-year average gross margin of 67.8%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 18 years of financial data for PTC INC. (PTC), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
PTC INC. (PTC) has a book value per share of $31.69, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management is focused on delivering consistent ARR growth through improved go-to-market execution and leveraging deferred ARR visibility into fiscal 2027 and beyond, with confidence in the factors within their control despite macro uncertainty. The company is building long-term durable contracts with customers and structuring deals for multi-year benefit, with the divestiture of Kepware and ThingWorx completed in March 2026 allowing PTC to concentrate fully on its intelligent product lifecycle vision. Management expects to see growth acceleration in the second half of fiscal 2026 and into fiscal 2027 as deferred ARR converts and the go-to-market transformation continues to mature, while maintaining disciplined capital allocation with significant share repurchases and continued investment in R&D around product innovation and AI-driven capabilities. The company is seeing strength in electronics and high tech verticals and expects the benefits of elevated C-level customer engagement and AI product releases to materialize more meaningfully in fiscal 2026 and beyond.
Based on recent SEC filings and earnings calls, PTC INC. (PTC) has provided the following forward guidance: Constant currency ARR growth (excluding Kepware and ThingWorx): 7.5%-9.5% (FY2026); Free cash flow: $850 million (FY2026); Revenue: $2.580 billion-$2.820 billion (FY2026); Non-GAAP EPS: $6.65-$8.90 (FY2026); Constant currency ARR growth (excluding Kepware and ThingWorx): 8%-9% (Q3 FY2026), plus 2 additional metrics.
Constant currency ARR growth (excluding Kepware and ThingWorx) (Q3 FY2026): “In Q3, for constant currency ARR, excluding Kepware and ThingWorx, we expect growth of approximately 8%-9%.”
Share repurchase (FY2026): “For the full year, we expect to repurchase approximately $1.225 billion-$1.325 billion of our common stock.”
Share repurchase authorization (October 1, 2026 through end of FY2028): “Today, we announced that our board has authorized a new $2 billion share repurchase program effective October 1st, 2026 through the end of fiscal year 2028”