PTC Inc
NASDAQ:PTC
PTC Inc
In the bustling world of software solutions, PTC Inc. has carved a distinctive niche for itself by focusing on high-impact digital transformation within the industrial sector. Founded in 1985 and headquartered in Boston, PTC started its journey with a robust CAD software offering, which quickly set the company apart as a leader in design innovation. However, as industries evolved, so did PTC. The company adeptly transitioned from its roots in CAD to embrace a broader spectrum of technologies that propel industrial companies into the digital age. With an eye on the future, PTC invested heavily in areas like the Internet of Things (IoT) and Augmented Reality (AR), providing a comprehensive suite of solutions tailor-made for modern manufacturing, engineering, and service challenges.
Central to PTC’s business model is its ability to blend traditional engineering software with cutting-edge digital innovations to create a seamless ecosystem for its clients. By offering products like ThingWorx for IoT applications and Vuforia for AR experiences, PTC empowers industries to optimize their operations, reduce downtime, and enhance product quality. These solutions are not only transformative but are also offered through subscription-based pricing, ensuring a steady and predictable revenue stream. PTC’s strategic focus on recurring revenue through digital solutions caters aptly to companies intent on thriving in Industry 4.0, placing PTC at the forefront of the industrial software revolution.
In the bustling world of software solutions, PTC Inc. has carved a distinctive niche for itself by focusing on high-impact digital transformation within the industrial sector. Founded in 1985 and headquartered in Boston, PTC started its journey with a robust CAD software offering, which quickly set the company apart as a leader in design innovation. However, as industries evolved, so did PTC. The company adeptly transitioned from its roots in CAD to embrace a broader spectrum of technologies that propel industrial companies into the digital age. With an eye on the future, PTC invested heavily in areas like the Internet of Things (IoT) and Augmented Reality (AR), providing a comprehensive suite of solutions tailor-made for modern manufacturing, engineering, and service challenges.
Central to PTC’s business model is its ability to blend traditional engineering software with cutting-edge digital innovations to create a seamless ecosystem for its clients. By offering products like ThingWorx for IoT applications and Vuforia for AR experiences, PTC empowers industries to optimize their operations, reduce downtime, and enhance product quality. These solutions are not only transformative but are also offered through subscription-based pricing, ensuring a steady and predictable revenue stream. PTC’s strategic focus on recurring revenue through digital solutions caters aptly to companies intent on thriving in Industry 4.0, placing PTC at the forefront of the industrial software revolution.
Divestiture: PTC announced a definitive agreement to sell Kepware and ThingWorx to TPG, sharpening focus on its core product life cycle businesses.
ARR Growth: Q4 constant currency ARR grew 8.5% year-over-year, landing at the midpoint of guidance.
Revenue Beat: Q4 revenue surpassed the midpoint of guidance by $140 million, due to large multiyear deals with longer terms.
Cash Flow: Free cash flow grew 16% year-over-year to $857 million for fiscal 2025, with $100 million generated in Q4.
Guidance: Fiscal 2026 ARR growth is guided to 7%–9% (including divested units), and PTC expects to deliver about $1 billion in free cash flow.
Buybacks: Company plans to buy back $150–250 million of shares per quarter in fiscal 2026, starting with $200 million in Q1.
AI & SaaS Focus: PTC is emphasizing AI and SaaS investments in its product roadmap, with new AI features and releases across core offerings.
