PTC US S&P 500Russell 1000 Earnings call · transcribed from the recording
PTC Inc. (PTC) · Q2 2026 results and valuation
Share price: $196.14 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q3 2026 · published 29 Jul 2026 and 6 May 2026
Net income down 79.9% on the previous quarter, guidance raised. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−79.9%
Net income vs Q1 2026
Guidance raised
Net income 118.8M vs 590.7M
Revenue −22.5%
Against the same quarter last year (Q2 2025) it is −16.0% — part of the move on last quarter is seasonal.
2 · How management spoke
Typical
Less upbeat than 53% of company calls
Answers to analysts: upbeat, in line with the script.
Similar to last call.
3 · What stood out
Key theme
PTC's Intelligent Product Lifecycle solutions continued driving customer demand and business performance across verticals, geographies and products.
Valuation
Is PTC Inc. undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-09-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 12.3% growth a year (3-year revenue growth), the model's fair value is $211.94 a share — the stock trades 7% below it. Today's price assumes 11.3% growth a year.
Current price
$196.14
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+11.3% for 10 yrs
Fair value / share
$211.94
Buy below
$158.95
Price vs fair value
Undervalued 7%
Price vs buy-below price
Overvalued 23%
Read between the lines
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Key theme
In Q3, PTC won its largest AI deal ever, a near 7-figure More broadly, its customers tell us its embedded AI capabilities are the fastest path to adoption and value because AI is delivered in the context of trusted…
Source quote
“In Q3, we won our largest AI deal ever, a near 7-figure More broadly, our customers tell us our embedded AI capabilities are the fastest path to adoption and value because AI is delivered in the context of trusted systems and governed workflows.”
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Guidance ↑
For the full year, PTC expects common stock repurchases to be approximately $1.625 billion, an increase to its previous guidance of $1.225 billion to $1.325 billion.
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Guidance
PTC expects its fully diluted share count to decrease to approximately 116 million shares for the full year compared to 121 million shares in FY '25.
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Figure
At the end of Q3, PTC's constant currency ARR was $2.448 billion, up 9.1% year-over-year, excluding Kepware and ThingWorx, above the high end...
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Given the momentum we have built and the opportunities in front of us, we are entering Q4 from a place of strength and are well positioned for a strong finish...”
“We are entering Q4 with stronger execution, growing strategic relevance with customers with our intelligent product life cycle strategy and increasing confidence that AI will expand the value of our...”
“Year-over-year constant currency ARR and free cash flow growth, both exceeded the high end of our guidance range.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 600.0M | 774.3M | −22.5% | 643.9M | −6.8% |
| Gross profit | 490.5M | 660.7M | −25.8% | 533.9M | −8.1% |
| Operating income | 166.5M | 295.8M | −43.7% | 209.8M | −20.6% |
| Net income | 118.8M | 590.7M | −79.9% | 141.3M | −16.0% |
| EPS | 1.03 | 4.98 | −79.3% | 1.17 | −12.0% |
| P/E today 18.9 | 11.0 | 13.7 | −2.7 | 40.6 | −29.6 |
Topics
Most discussed now
- Like and PTC is very proud of its Q3 performance because it really, from what it is seeing, solidified its go-to-market...
- New This outsized repurchasing decreased fully diluted share count to 115 million shares in Q3.
- PTC also mentioned today about turn the corner, it has created now this go-to-market motion that's got this new operating standard.
- Q3 was a quarter of strong and consistent execution, highlighted by $60 million of net new ARR and broad-based strength...
- This is why PTC has chosen to increase the midpoint of its annual ARR growth guidance to 9.25%.
Faded since Q1 2026
- Fading This customer moved forward because they understood that to take advantage of AI, they first need to modernize their product...
- Fading PTC grew constant currency ARR 8.5% at the high end of guidance and free cash flow 14% year-over-year, exceeding its...
- Fading That Windchill manages the authoritative product data their business runs on; and second, a clear road map for AI...
- Fading PTC also deployed the entire $375 million of net after-tax proceeds from the divestiture into an accelerated share repurchase program.
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Material agreement; Regulation FD disclosure · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Regulation FD disclosure · SEC 8-K
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K