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PTC
FY2026 Q3
Raised
PTC Inc. earnings call
Buzzberg read
AI is accelerating demand for PTC's systems of record
PTC reported a strong Q3 FY26, with net new ARR of $60M and free cash flow of $249M, both exceeding guidance. The company raised its full-year ARR growth guidance to 9-9.5% and its FCF guide to ~$850M. Management is confident in the go-to-market transformation and sees AI as a long-term accelerant. Q3 net new ARR was $60M, above guidance, driven by strong demand capture and better-than-expected retention.
Buzzberg read AI is accelerating demand for PTC's systems of record PTC reported a strong Q3 FY26, with net new ARR of $60M and free cash flow of $249M, both exceeding guidance. The company raised its full-year ARR growth guidance to 9-9.5% and its FCF guide to ~$850M. Management is confident in the go-to-market transformation and sees AI as a long-term accelerant. Q3 net new ARR was $60M, above guidance, driven by strong demand capture and better-than-expected retention. Read full analysisCollapse analysis
PTC reported a strong Q3 FY26, with net new ARR of $60M and free cash flow of $249M, both exceeding guidance. The company raised its full-year ARR growth guidance to 9-9.5% and its FCF guide to ~$850M. Management is confident in the go-to-market transformation and sees AI as a long-term accelerant. Q3 net new ARR was $60M, above guidance, driven by strong demand capture and better-than-expected retention.
- ARR growth, excluding divested Kepler and ThingWorx, was 9.1% year-over-year in constant currency.
- Raised FY26 ARR growth guidance to approximately 9-9.5%, with the midpoint now at 9.25%.
- Largest AI deal ever, a near 7-figure ServiceMax AI deal, was signed with a major industrial automation company.
Revenue$0.6B-23% QoQ
EPS$1.58-41% QoQ
Gross margin81.74%Reported
Operating margin27.75%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
AI
PTC won largest AI deal ever with ServiceMax
Go-to-market
Go-to-market transformation has turned the corner
Show 3 more callouts
Guidance
Fiscal 26 ARR growth guidance raised to 9-9.5%
Buybacks
Share repurchases increased to $1.625 billion for FY26
Demand
Deferred ARR roughly doubled for FY27
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $0.6B | -23% QoQ |
| EPS | $1.58 | -41% QoQ |
| Gross margin | 81.74% | Reported |
| Operating margin | 27.75% | Reported |
| Free cash flow | $0.2493B | -22% QoQ |
| Capex | $0.0113B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 Q4 | $7.87–$8.42 | $8.14 | Raised |
| Revenue | FY2026 Q4 | $2.69B–$2.75B | $2.72B | Raised |
AI, capex & demand read
Management read
Confident
Management repeatedly emphasized strong execution, raised guidance, and expressed confidence in go-to-market transformation and AI-driven growth.
Management AI read
Management emphasized that AI is driving customer demand for their systems of record and product data foundations, with standalone AI capabilities expected to become a more meaningful contributor to ARR over the next few years. They highlighted early traction, including their largest AI deal ever, and noted that AI adoption progresses from focused workflows with clear ROI to broader deployments.
Investment and capacity
Capital expenditure is not explicitly discussed in the transcript. However, management noted an investment in solar for green footprint, which implies some capital allocation towards sustainability, with expected tax savings over the medium term.
all 5 named companies below
Companiesreturns since call
Customers
Customers
Neil Barua
Winnebago is standardizing on Onshape, indicating a notable CAD/PLM win for PTC in the recreational vehicle space; adoption by a major OEM validates Onshape's positioning.
Evidence
“we saw that in a massive win. In fact, Onshape's largest win ever was this quarter with a company called Winnebago, where that's actually what has inspired them to move to Onshape.”
Supply chain
Supply chain
Neil Barua
PTC reports its third consecutive quarter with strengthened go-to-market execution, reflected in doubled aggregate value of customer displacements year-over-year; this trend is driving new competitive wins and accelerating PLM modernization. — This signals that PTC is taking more market share from legacy PLM and CAD competitors, potentially impacting their growth in core engineering software segments.
Evidence
“the number of displacements or the aggregate value of displacements year over year has doubled at PTC, which is indicative and shown in some of the customer slides that we said.”
Supply chain
Neil Barua
Demand and usage for PTC's cloud-native CAD (Onshape) is being fueled by AI-related API calls from new AI-native startups; the company notes a tripling of API calls in recent months. — This shows a rising demand for a controlled CAD/PLM data layer from AI developers, a segment that may increasingly become a key battleground against Autodesk's cloud offerings.
Evidence
“the API calls to Onshape by AI-related startups is tripling just in a few months, and it's just started to do that, which is indicative of that gating momentum...”
External signals
Supply-chain alpha · 2returns since call
PTC reports its third consecutive quarter with strengthened go-to-market execution, reflected in doubled aggregate value of customer displacements year-over-year; this trend is driving new competitive wins and accelerating PLM modernization.
Demand and usage for PTC's cloud-native CAD (Onshape) is being fueled by AI-related API calls from new AI-native startups; the company notes a tripling of API calls in recent months.
Methodology & coverage
Management-only analysis. All 5 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.