PTC Q3 adjusted EPS beats estimates; raises FY26 guidance

Overview

• U.S. industrial software firm's fiscal Q3 revenue declined and missed analyst expectations

• Adjusted EPS for fiscal Q3 beat consensus

• Company repurchased $525 mln of shares in Q3

Outlook

• PTC raises FY26 guidance for ARR, revenue and EPS, maintains cash flow guidance

• Company expects FY26 revenue of $2.69 bln to $2.75 bln

• PTC projects FY26 EPS of $8.46 to $9.18

Result Drivers

• CUSTOMER ADOPTION - Co said improved demand capture and customer adoption contributed to Q3 performance

• AI INTEREST - Co said growing customer interest in AI is influencing product strategy and customer conversations

• BUSINESS MODEL FOCUS - Co attributed results to a more focused business model following divestitures

Company press release: ID:nPn4VxgQ0a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 9 "hold" and 1 "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 $177.50, about 39.2% above its July 28 closing price of $127.51

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads

• July 27 - Cadence raises annual forecasts as demand booms for AI chip design

• July 29 - Industrial products maker Fortive lifts profit view on strong automation business

• July 28 - Manhattan Associates Q2 results beat on cloud demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)