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PTC
FY2026 Q2
Raised
PTC Inc. earnings call
Buzzberg read
AI driving need to modernize product data foundation
PTC reported strong Q2 FY26 results, with ARR growth at the high end of guidance and raised its full-year revenue and EPS outlook. The company emphasized that AI-led modernization demands are driving customer engagement and displacement wins, positioning it for a stronger second half. Q2 ARR growth of 8.5% YoY, at the high end of guidance.
Buzzberg read AI driving need to modernize product data foundation PTC reported strong Q2 FY26 results, with ARR growth at the high end of guidance and raised its full-year revenue and EPS outlook. The company emphasized that AI-led modernization demands are driving customer engagement and displacement wins, positioning it for a stronger second half. Q2 ARR growth of 8.5% YoY, at the high end of guidance. Read full analysisCollapse analysis
PTC reported strong Q2 FY26 results, with ARR growth at the high end of guidance and raised its full-year revenue and EPS outlook. The company emphasized that AI-led modernization demands are driving customer engagement and displacement wins, positioning it for a stronger second half. Q2 ARR growth of 8.5% YoY, at the high end of guidance.
- Raised FY26 revenue and non-GAAP EPS guidance.
- Divestiture of Kepware and ThingWorx completed, leaving a more focused business.
- Management expressed high confidence in a Q4 ARR step-up driven by AI demand and deferred ARR.
Revenue$0.7743B+13% QoQ
EPS$2.69+40% QoQ
Gross margin83.78%Reported
Operating margin38.2%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
AI
PTC nearly doubling AI releases in 2026
Guidance
Q4 step-up backed by deferred ARR
Show 3 more callouts
Guidance
Expect growth increase in fiscal 27 with no incremental performance
Buybacks
New $2 billion share repurchase authorization
AI
AI monetization to be material in fiscal 27
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $0.7743B | +13% QoQ |
| EPS | $2.69 | +40% QoQ |
| Gross margin | 83.78% | Reported |
| Operating margin | 38.2% | Reported |
| Free cash flow | $0.3182B | +19% QoQ |
| Capex | $0.0027B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $6.65–$8.90 | $7.78 | Raised |
| Free cash flow | FY2026 | $0.85B | $0.85B | Maintained |
| Free cash flow | FY2026 Q3 | $0.24B–$0.245B | $0.2425B | Guided |
| Revenue | FY2026 | $2.58B–$2.82B | $2.7B | Raised |
AI, capex & demand read
Management read
Confident
Management expressed confidence in their growth strategy and execution, citing strong demand capture, a high-quality pipeline, and AI-driven momentum, while acknowledging macro uncertainty but focusing on controllable factors.
Management AI read
Management emphasized that AI is driving modernization demand as customers need to modernize their product data foundations to leverage AI. They are scaling AI releases significantly, with embedded agents in their systems, and expect monetization to become more material in fiscal 2027, though it's early days.
all 8 named companies below
Companiesreturns since call
Customers
ANDURIL
Customers
Neil Barua
Indicates strong adoption of PTC's Onshape CAD product in the robotics/defense tech space, suggesting a high-growth customer base.
Evidence
“Onshape by the way from a vertical perspective is kicking butt in the robotics and automation space as well as in the physical ai space hence the reason why Jensen himself actually talked about Onshape and PTC in his keynote”
Customers
Neil Barua
Implies a continued strategic relationship with BMW, leveraging PTC's ALM (CodeBeamer) and PLM (Windchill) solutions for software-defined vehicles.
Evidence
“We continue to play in the automotive sector different than some of our competitors, where the predominance of our automotive thrust is around code beamer and windshield”
Partners
Partners
Neil Barua
Management highlighted that Jensen Huang (NVIDIA CEO) referenced PTC's Onshape in an NVIDIA keynote, a significant endorsement that validates PTC's strategy in the physical AI space.
Evidence
“Jensen himself actually talked about Onshape and PTC in his keynote”
Supply chain
Supply chain
Neil Barua
PTC's go-to-market is increasingly focused on displacing competitors, particularly in PLM and ALM, driven by customer urgency to modernize data foundations for AI. — Strong displacement anecdotes in PLM/ALM signal potential share loss for legacy and competing PLM vendors like Dassault Systèmes and Siemens.
Evidence
“We're seeing displacements happen because consolidating PLM systems onto the best one, which is Windchill, is paramount.”
Supply chain
Neil Barua
PTC is seeing significant traction in the electronics and high-tech vertical, driven by data center buildouts and the need for agile product development. — Increased spending on physical data center infrastructure is driving demand for PTC's design and PLM software from hardware manufacturers.
Evidence
“the verticals that we're seeing strengthen is around electronics and high tech I don't think that should be a surprise given the data center modernization that's occurring. Those customers are coming to us to build their infrastructure.”
Supply chain
Jen DeRigo
Management expects a 'significant step-up' in Q4 net new ARR, partly driven by a build-up in deferred ARR, not just organic sales performance. — The shift towards longer-duration contracts boosts deferred revenue, creating a more predictable ARR trajectory and potentially signaling a competitive shift away from annual licensing models.
Evidence
“we have clear visibility into a significant step-up in deferred ARR starting in Q4.”
External signals
Supply-chain alpha · 3returns since call
PTC's go-to-market is increasingly focused on displacing competitors, particularly in PLM and ALM, driven by customer urgency to modernize data foundations for AI.
PTC is seeing significant traction in the electronics and high-tech vertical, driven by data center buildouts and the need for agile product development.
Management expects a 'significant step-up' in Q4 net new ARR, partly driven by a build-up in deferred ARR, not just organic sales performance.
Methodology & coverage
Management-only analysis. All 8 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.