Core Insights - PTC has appointed James Lico to its Board of Directors, effective October 13, 2025, bringing extensive experience in industrial technology and business transformation [1][2][3]. Company Overview - PTC is a global software company focused on enabling digital transformation for industrial and manufacturing sectors, headquartered in Boston, Massachusetts, with over 7,000 employees and more than 30,000 customers worldwide [5]. Leadership Experience - James Lico previously served as President and CEO of Fortive Corporation, where he led significant growth, increasing annual revenue to over $6 billion and overseeing the separation of its Precision Technologies segment [2][3]. - Lico has nearly two decades of experience at Danaher in senior leadership roles, managing global businesses in test and measurement and industrial technologies [3]. Board Contributions - Lico will serve on the Corporate Governance Committee of the PTC Board, contributing his expertise in driving growth and transformation in technology companies [4][3].

Core Points - PTC is scheduled to release its fiscal 2025 fourth quarter and full year results on November 5, 2025, after the stock market closes [1] - A live webcast and conference call will be held on the same day at 5pm Eastern Time to review the results [1][2] - The earnings press release, presentation, and financial data will be available on the Investor Relations section of PTC's website prior to the conference call [1] Company Overview - PTC is a global software company that facilitates digital transformation for manufacturers and product companies [3] - The company is headquartered in Boston, Massachusetts, and employs over 7,000 people [3] - PTC supports more than 30,000 customers worldwide [3]

Core Insights - PTC has launched new AI offerings in its ServiceMax and Servigistics solutions to enhance service lifecycle management [1][2] - The advancements in AI aim to improve efficiency in field service management and service supply chain optimization [1][3] ServiceMax Enhancements - The latest ServiceMax AI features include orchestrated multi-agent execution, AI-driven process automation, and a new Knowledge API for document connectivity [2][3] - These enhancements are designed to streamline workflows for various roles within service organizations, improving work order execution and parts queries [2][6] Servigistics Advancements - Servigistics has strengthened its AI capabilities, focusing on troubleshooting, root-cause analysis, and continuous improvement in service parts planning [3][4] - A new AI Assistant will be available in October 2025, aimed at improving forecast accuracy and accelerating planning cycles [3][4] Industry Context - Organizations face pressure to maintain equipment functionality and customer satisfaction while managing costs [4] - AI-powered capabilities from Servigistics enable faster, smarter decision-making, leading to reduced manual effort and improved service performance [4][6] PTC's Broader AI Portfolio - The new SLM AI solutions are part of PTC's extensive AI offerings across the Intelligent Product Lifecycle, which includes various AI tools for product data management [4][5] - PTC supports manufacturers in leveraging product data to enhance efficiency, reduce costs, and improve product quality [4][5]

Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, which can lead to solid returns, but identifying such stocks is challenging due to their inherent risks and volatility [1] Group 1: Company Overview - PTC Inc. is currently recommended as a strong growth stock due to its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 13.8%, with projected EPS growth of 33.5% this year, significantly outperforming the industry average of 12% [4] Group 2: Financial Metrics - PTC Inc. exhibits year-over-year cash flow growth of 18.6%, surpassing the industry average of 8.9% [5] - The company's annualized cash flow growth rate over the past 3-5 years is 25.7%, compared to the industry average of 10.5% [6] Group 3: Earnings Estimates - There have been upward revisions in current-year earnings estimates for PTC Inc., with the Zacks Consensus Estimate increasing by 0.1% over the past month [8] - The combination of a Growth Score of B and a Zacks Rank 1 positions PTC Inc. well for potential outperformance, making it an attractive option for growth investors [10]

Core Insights - PTC Inc. has launched the Arena AI Assistant, an AI-powered guide integrated into its Arena product lifecycle management (PLM) and quality management system (QMS) platforms [1][10] - The AI Assistant aims to accelerate time to value by providing real-time, context-aware expertise through a conversational interface [2] - PTC's go-to-market realignment is a key strategy for fiscal 2025, focusing on optimizing sales and marketing to enhance customer value and capture new opportunities [6][7] Product Developments - The Arena AI Assistant features a conversational interface that allows users to interact in natural language, supporting various processes such as bill of material reviews and compliance tracking [3] - PTC also introduced Arena Supply Chain Intelligence (SCI), an AI-driven solution that monitors supply chain conditions and offers real-time insights [4] - The Onshape-Arena Connection facilitates seamless management of release and change processes across CAD and PLM environments, enhancing collaboration [5] Market Position and Performance - PTC's fiscal third-quarter results indicate progress in its go-to-market transformation, with improved pipeline creation and win rates [6][7] - The company currently holds a Zacks Rank 1 (Strong Buy), with shares gaining 17.2% over the past year, slightly below the industry growth of 18.2% [9]

Company Overview - PTC Inc. is a Boston-based company that develops technology solutions, including software and services, for discrete manufacturers to design, operate, and maintain complex products, with a market cap of $24.6 billion [1][2] Market Position - PTC is classified as a large-cap stock, highlighting its size and influence in the software application industry, with strong market position and technological expertise driven by its PLM and CAD solutions [2] Stock Performance - PTC's stock has experienced a 7.2% decline from its 52-week high of $219.69, reached on July 31, but has gained 21.8% over the past three months, outperforming the S&P 500 Index's 10.3% gains [3] - Year-to-date, PTC shares have risen 10.9% and 16.1% over the past 52 weeks, although this is below the S&P 500's YTD gains of 12.2% and 17.1% over the last year [4] Recent Financial Results - In Q3, PTC reported an adjusted EPS of $1.64, surpassing Wall Street expectations of $1.22, and revenue of $643.9 million, exceeding forecasts of $582.4 million [5] - The company anticipates full-year adjusted EPS between $6.63 and $7.03, with revenue expected to range from $2.57 billion to $2.63 billion [5] Competitive Landscape - ANSYS, Inc. has shown resilience with an 11% YTD increase, but has lagged behind PTC with 13.3% returns over the past 52 weeks [6] - Wall Street analysts maintain a bullish outlook on PTC, with a consensus "Strong Buy" rating and a mean price target of $226.61, indicating a potential upside of 11.1% from current levels [6]

Core Insights - PTC has launched the Arena AI Assistant, an AI-driven tool designed to enhance productivity in product lifecycle management (PLM) and quality management system (QMS) workflows, providing real-time, context-aware expertise [1][2] Group 1: Arena AI Assistant Features - The Arena AI Assistant offers a conversational interface that helps users navigate engineering change orders, manage corrective and preventive actions (CAPAs), and maintain compliance [1][2] - It is designed to assist both new and experienced users, facilitating onboarding and addressing complex engineering challenges [2][6] - The assistant is available in more than 15 languages, supporting global engineering teams [7] Group 2: Supply Chain Enhancements - The release includes new features for Arena Supply Chain Intelligence (SCI), which monitors emerging risks in supply chains and integrates AI-driven insights into product development workflows [3] - The Onshape-Arena Connection feature allows mechanical engineers to manage the release and change management processes between CAD and PLM systems, streamlining collaboration with supply chain partners [3] Group 3: Company Overview - PTC is a global software company headquartered in Boston, employing over 7,000 people and serving more than 30,000 customers worldwide [4]

Industry Overview - The Zacks Computer Software industry is positioned to benefit from global digital transformation, with a shift to cloud and SaaS models providing recurring revenue visibility and flexibility for users [1] - The industry is experiencing growth driven by the integration of AI and ML technologies into various applications [1] Market Trends - The global software market is projected to grow at a CAGR of 11.3% from 2025 to 2030, reaching $1,397.31 billion [2] - Increased spending on AI and cloud technologies is expected to enhance the industry's prospects, with a focus on automation, personalization, and predictive analytics [4] - Cloud computing is becoming a dominant force, with businesses adopting hybrid and multi-cloud environments for flexibility and scalability [5] - The demand for cybersecurity software is rising due to increased cyberattacks, leading to a focus on performance management monitoring tools [6] Macroeconomic Factors - Global macroeconomic weakness and supply chain volatility are concerns for the industry, with inflation potentially affecting spending among small and medium-sized businesses [7] - Worldwide IT spending is projected to reach $5.43 trillion in 2025, reflecting a 7.9% increase from 2024, which is lower than previous forecasts [7] Industry Performance - The Zacks Computer Software industry has underperformed compared to the broader Zacks Computer and Technology sector and the S&P 500 Index over the past year, gaining 18.2% compared to 18.8% and 30% respectively [11] Valuation Metrics - The industry is currently trading at a forward 12-month P/E ratio of 33.11X, higher than the S&P 500's 23.24X and the sector's 28.69X [14] Company Highlights - **Manhattan Associates (MANH)**: Reported a 22% increase in cloud revenues for Q2 2025, with total revenues up 2.7% year over year. The Zacks Consensus Estimate for 2025 earnings is $4.81 per share, indicating 1.9% growth [18][20][19] - **PTC Inc (PTC)**: Focused on AI strategy with positive customer feedback and a Zacks Consensus Estimate for fiscal 2025 earnings at $6.69 per share, indicating 31.7% growth [23][26] - **Microsoft Corporation (MSFT)**: Achieved total revenue of $281.7 billion in fiscal 2025, with AI business revenue exceeding $13 billion, growing 175% year over year. The Zacks Consensus Estimate for fiscal 2026 earnings is $15.35 per share, indicating 12.5% growth [33][34]

Core Insights - The presentation features PTC's CEO Neil Barua and CFO Kristian Talvitie discussing the company's performance and customer engagement strategies [1] Company Overview - Neil Barua, as the new CEO, prioritized meeting with customers globally to gather insights and feedback on PTC's offerings [1] - The focus on customer interaction is aimed at understanding market needs and enhancing product development [1] Customer Engagement - Barua's travels and discussions with customers revealed surprising takeaways that could influence PTC's strategic direction [1] - The emphasis on customer feedback is expected to drive improvements in PTC's services and solutions [1]

Summary of PTC Conference Call Company Overview - **Company**: PTC (Parametric Technology Corporation) - **Industry**: Software, specifically focusing on product lifecycle management (PLM) and computer-aided design (CAD) solutions - **Key Products**: Windchill (PLM), Creo (CAD), CodeBeamer (Application Lifecycle Management), Onshape (cloud-based CAD), ServiceMax Core Insights and Arguments 1. **Customer Engagement**: The CEO, Neil Barua, emphasized the importance of engaging with customers globally to understand their needs and challenges, particularly the demand for faster product development amidst increasing complexity in business environments [5][10][45] 2. **Strategic Positioning**: PTC is positioned as a critical player in the software vertical, with a strong relationship with customers built over 40 years, which is essential for their product development processes [10][11] 3. **Go-to-Market Transformation**: The company is undergoing a transformation in its go-to-market strategy, focusing on verticalization to enhance customer engagement and increase market share [12][13] 4. **Financial Guidance**: PTC adjusted its full-year growth targets to the high single digits, reflecting a stable macro environment and improved execution in Q3 [15][19] 5. **Product Lifecycle Management**: Windchill is highlighted as a flagship product with significant growth potential, particularly as companies seek to integrate software and hardware development processes [29][30] 6. **AI Integration**: PTC is embedding AI into its solutions, enhancing product capabilities and improving operational efficiency [37][39] 7. **ServiceMax Performance**: The ServiceMax segment faced challenges but is expected to align better with PTC's offerings, creating opportunities for growth [48][50] Additional Important Points 1. **Market Dynamics**: The company noted that while the macro environment remains challenging, it has not worsened, allowing for a more stable outlook [19][20] 2. **Customer Sentiment**: There is a sense of urgency among customers to invest in digital transformation, which PTC is well-positioned to support [45][46] 3. **M&A Strategy**: PTC is focused on tuck-in acquisitions that enhance its product data foundation and align with its strategic vision [62][63] 4. **Cash Flow Management**: PTC operates on a cash basis, providing visibility into cash inflows and outflows, which supports its financial stability [55][58] 5. **Internal AI Utilization**: The company is leveraging AI internally to improve customer support and R&D processes, leading to productivity gains [59][60] This summary encapsulates the key points discussed during the PTC conference call, highlighting the company's strategic direction, product focus, and market positioning.