Core Viewpoint - PTC Inc. has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in a company's earnings picture, which significantly influences stock price movements [2][4]. - Rising earnings estimates for PTC Inc. suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [9][10]. Earnings Estimate Revisions for PTC Inc. - PTC Inc. is expected to earn $6.69 per share for the fiscal year ending September 2025, with no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for PTC Inc. has increased by 14.7%, reflecting analysts' positive revisions [8].

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates is challenging due to inherent risks and volatility [1] Group 1: Company Overview - PTC Inc. is highlighted as a recommended growth stock based on the Zacks Growth Style Score, which evaluates a company's growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2] Group 2: Earnings Growth - PTC Inc. has a historical EPS growth rate of 13.8%, with projected EPS growth of 21.7% for the current year, significantly surpassing the industry average of 12.1% [5] Group 3: Cash Flow Growth - The year-over-year cash flow growth for PTC Inc. stands at 18.6%, exceeding the industry average of 9.4% [6] - Over the past 3-5 years, the company's annualized cash flow growth rate has been 25.7%, compared to the industry average of 10.8% [7] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for PTC Inc., with the Zacks Consensus Estimate for the current year increasing by 16.6% over the past month [8] Group 5: Conclusion - PTC Inc. has achieved a Growth Score of A and a Zacks Rank of 2, indicating it is a strong candidate for growth investors [9][10]

Core Viewpoint - PTC Inc. shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2]. Earnings Estimates - Analysts' optimism regarding PTC's earnings prospects is leading to higher estimates, which is expected to positively impact the stock price [2]. - The Zacks Rank system indicates a strong correlation between earnings estimate revisions and stock price movements, with PTC benefiting from this trend [2][3]. Current Quarter Estimates - For the current quarter, PTC is projected to earn $2.01 per share, reflecting a year-over-year increase of +30.5% [6]. - The Zacks Consensus Estimate for the current quarter has risen by 10.17% over the last 30 days, with no negative revisions reported [6]. Current Year Estimates - For the full year, PTC is expected to earn $6.18 per share, representing a year-over-year change of +21.7% [7]. - The consensus estimate for the current year has increased by 16.57%, supported by two upward revisions and no negative changes [7][8]. Zacks Rank - PTC has achieved a Zacks Rank 2 (Buy), indicating favorable estimate revisions that enhance its investment appeal [9]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500, suggesting a positive outlook for PTC [9]. Stock Performance - PTC shares have increased by 23.8% over the past four weeks, indicating strong investor confidence in the company's earnings growth prospects [10].

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the short term [2][3] - Each stock receives a rating from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score focuses on identifying undervalued stocks by analyzing financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Style Score assesses a company's financial health and future growth potential by examining projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score identifies optimal entry points for stocks based on price trends and earnings estimate changes [5] VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive assessment of stocks based on multiple investment styles [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +23.75% since 1988 [7][9] - There are over 800 stocks rated 1 or 2, making it essential for investors to use Style Scores to narrow down their choices [8] Stock Highlight: PTC Inc. - PTC Inc., a software provider based in Boston, MA, is rated 2 (Buy) on the Zacks Rank and has a VGM Score of B [11] - The company is projected to experience a year-over-year earnings growth of 21.7% for the current fiscal year, supported by a Growth Style Score of A [12] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate increasing by $0.09 to $6.18 per share, and PTC has an average earnings surprise of +23.2% [12]

Table of Contents OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_ to_ Commission File Number: 0-18059 PTC Inc. (Exact name of registrant as specified in its charter) Massachusetts 04-2866152 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 (State or other jurisdicti ...

Core Insights - PTC Inc. reported third-quarter fiscal 2025 non-GAAP EPS of $1.64, exceeding the Zacks Consensus Estimate by 34.4% and up from 98 cents in the prior-year quarter [1][9] - Revenues reached $644 million, a 24% year-over-year increase, surpassing the consensus estimate by 10.6% [2][9] - The company is focusing on digital product innovation and transitioning to SaaS and subscription models, which is establishing a stable revenue base [2][3] Financial Performance - Recurring revenues were $613.6 million, up 27.4% year over year, while perpetual licenses increased by 10.1% to $7.8 million [6] - License revenues accounted for 39% of total revenues at $251.5 million, a 68.6% increase from the previous year, while support and cloud services revenues rose 8.9% to $370 million [7] - PLM revenues were $404 million, growing 23% year over year, and CAD revenues were $240 million, up 27% [10] Operating Metrics - Total operating expenses were $324 million, compared to $310.9 million in the prior-year quarter, with non-GAAP operating income rising to $285.2 million from $164.4 million [12] - The non-GAAP operating margin increased by 1,260 basis points year over year to 44% [12] Cash Flow and Balance Sheet - As of June 30, 2025, cash and cash equivalents were $199 million, down from $235 million as of March 31, 2025, while total debt decreased to $1.23 billion from $1.54 billion [13] - Cash provided by operating activities was $244 million, up from $214 million in the prior-year quarter, and free cash flow was $242 million compared to $212 million [13] Shareholder Returns - During the fiscal third quarter, PTC repurchased $75 million worth of its stock as part of a $300 million buyback plan for fiscal 2025 [14] Future Guidance - PTC now projects fiscal 2025 revenues in the range of $2,570 to $2,630 million, indicating a 12-14% year-over-year increase, and non-GAAP EPS is estimated to be between $6.63 and $7.03, suggesting a rise of 31-38% [15] - For the fourth quarter of fiscal 2025, revenues are estimated to be between $725 and $785 million, with non-GAAP EPS projected in the range of $2.10 to $2.50 [17]

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. PTC In ...

Group 1 - PTC Inc. reported quarterly earnings of $1.64 per share, exceeding the Zacks Consensus Estimate of $1.22 per share, and showing an increase from $0.98 per share a year ago, resulting in an earnings surprise of +34.43% [1][2] - The company achieved revenues of $643.94 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 10.57%, compared to $518.64 million in the same quarter last year [2] - PTC Inc. has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2][6] Group 2 - The stock has gained approximately 11.1% since the beginning of the year, outperforming the S&P 500's gain of 8.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4][7] - The current consensus EPS estimate for the upcoming quarter is $1.96 on revenues of $709.64 million, and for the current fiscal year, it is $6.09 on revenues of $2.49 billion [7] Group 3 - The Computer - Software industry, to which PTC Inc. belongs, is currently ranked in the top 21% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

Financial Data and Key Metrics Changes - The company reported a constant currency Annual Recurring Revenue (ARR) of $2,372 million, reflecting a 9.3% year-over-year growth [17] - Free cash flow for Q3 was $242 million, up 14% year-over-year [17] - Total debt at the end of Q3 was $1,236 million, with a leverage ratio of 1.2 times [17] Business Line Data and Key Metrics Changes - ARR growth in the CAD segment was 8%, primarily driven by CREO, while PLM saw a 10% increase, mainly from Windchill, CodeBeamer, and IoT [17] - The Americas experienced an 8% growth in constant currency ARR, Europe and Asia Pacific both saw an 11% increase [17] Market Data and Key Metrics Changes - The company noted that policy and trade uncertainties had led some customers to slow or phase deals, but signs of stabilization were observed by quarter-end [9] - Demand remained resilient across various verticals and geographies, indicating that the company's solutions are considered mission-critical [9] Company Strategy and Development Direction - The company is focused on enhancing its product data foundation strategy, which is central to its vision of AI-driven transformation [12][13] - The relationship with NVIDIA is highlighted as a significant opportunity for innovation and collaboration in AI and product data intelligence [14] - The company aims to maintain a net debt position and return excess cash to shareholders through share repurchases [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position in the market and the ongoing transformation of its go-to-market strategy [6][15] - There is optimism regarding the pipeline for Q4, with several meaningful opportunities identified [15] - Management acknowledged the challenges posed by input costs and tariff discussions but noted that customers are adapting to the environment [9] Other Important Information - The company is actively repurchasing shares under a $2 billion authorization, having repurchased $75 million worth of shares in Q3 [17] - The company expects to buy back approximately $300 million of common stock in fiscal '25, with $75 million expected in Q4 [17] Q&A Session Summary Question: Update on go-to-market initiatives and verticalization - Management noted progress in the go-to-market transformation, with improvements in win rates and rep productivity [29][30] Question: Confidence going into Q4 amid macro outlook - Management highlighted a strong pipeline and increased clarity in customer conversations, contributing to confidence for Q4 [36][38] Question: Changes in customer behavior due to tariff uncertainty - Management observed that while uncertainty has decreased, customers are still facing challenges with higher input costs [48][50] Question: Impact of AI on ARR uplift - Management indicated that AI is becoming a critical part of customer conversations, with positive feedback from early adopters [64][66] Question: Thoughts on M&A speculation - Management refrained from commenting on market speculation but emphasized the company's strategic leadership in its space [60] Question: Progress of ServiceMax business - Management discussed the importance of ServiceMax in cross-selling opportunities and its connection to core products like Windchill [76][82] Question: Improvement in multi-solution sales - Management noted an increase in discussions around multi-product offerings, indicating a positive trend in the pipeline [92][93] Question: Timeline for seeing outcomes from go-to-market transition - Management expects to see more significant outcomes from the go-to-market transition by mid to late next year [100][101] Question: Long-term commercial optimization strategies - Management is rigorously discussing commercial levers and believes there are opportunities for growth through pricing strategies [104][106]

Financial Data and Key Metrics Changes - In Q3, the company reported a constant currency ARR of $2,372,000,000, reflecting a 9.3% year-over-year growth [15] - Free cash flow for Q3 was $242,000,000, up 14% year-over-year [15] - The company ended Q3 with cash and cash equivalents of $199,000,000 and total debt of $1,236,000,000, resulting in a leverage ratio of 1.2 times [17] Business Line Data and Key Metrics Changes - Constant currency ARR growth was 8% in CAD, driven primarily by CREO, and 10% in PLM, driven by Windchill, CodeBeamer, and IoT [16] - The Americas saw an 8% growth in constant currency ARR, while Europe and Asia Pacific both experienced an 11% growth [16] Market Data and Key Metrics Changes - The company noted that policy and trade uncertainty led some customers to slow or phase deals, but signs of stabilization were observed by quarter-end [7] - Demand remained resilient across verticals and geographies, indicating that the company's solutions are considered mission-critical by customers [7] Company Strategy and Development Direction - The company is focused on enhancing its product data foundation strategy, which is central to its vision of AI-driven transformation [11] - The relationship with NVIDIA is highlighted as a significant opportunity for innovation and collaboration in AI and product data intelligence [12] - The company is actively engaged in a go-to-market transformation, aiming to build a more consistent operating rhythm and improve collaboration across sales, marketing, and customer success [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position in the market and the resilience of its solutions amid macroeconomic uncertainties [5] - The company anticipates a strong Q4 pipeline with several meaningful opportunities across verticals and core products [13] - Management noted that while there are still challenges, the digital transformation needs of customers have become more pronounced, positioning the company as a strategic partner [53] Other Important Information - The company is committed to a $2,000,000,000 share repurchase program and has repurchased $75,000,000 worth of shares in Q3 [17] - The company expects to maintain a low cash balance and return excess cash to shareholders through share repurchases [19] Q&A Session Summary Question: Update on go-to-market initiatives and verticalization - Management indicated that progress in go-to-market transformation is building confidence, with improvements in win rates and rep productivity [31][32] Question: Confidence going into Q4 amid macro outlook - Management highlighted a strong pipeline with the highest number of $5,000,000+ deals and improved alignment across functions to maximize pipeline opportunities [39][40] Question: Changes in customer behavior due to tariff uncertainty - Management noted that while uncertainty remains, there is more clarity in customer conversations, and digital transformation is increasingly viewed as mission-critical [50][51] Question: Impact of AI on ARR uplift - Management stated that AI is becoming central to customer conversations, with positive feedback on AI capabilities, but cautioned that it is still early to quantify ARR impact [64][65] Question: Thoughts on M&A speculation - Management refrained from commenting on market speculation but emphasized the company's strategic leadership and focus on execution [59][60] Question: Progress of ServiceMax business - Management acknowledged challenges due to churn but remains optimistic about the strategic importance of ServiceMax in relation to core products [84][86] Question: Improvement in multi-solution sales - Management reported an increase in discussions around multi-product offerings, indicating a positive trend in pipeline development [92][93] Question: Timing for seeing outcomes from go-to-market transition - Management expects to see more significant outcomes from the go-to-market transition by mid to late next year [102]