Core Insights - PTC Inc. reported quarterly earnings of $3.47 per share, significantly exceeding the Zacks Consensus Estimate of $2.26 per share, and showing a year-over-year increase from $1.54 per share, resulting in an earnings surprise of +53.54% [1] - The company achieved revenues of $893.8 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 20.18%, and up from $626.55 million a year ago [2] - PTC Inc. has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of PTC Inc. shares will largely depend on management's commentary during the earnings call and the sustainability of the stock's price movement based on recent earnings and future expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.54 on revenues of $649.29 million, and for the current fiscal year, it is $7.43 on revenues of $2.78 billion [7] Industry Context - The Computer - Software industry, to which PTC Inc. belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Data and Key Metrics Changes - In Q4, the company achieved 8.5% constant currency ARR growth and 16% free cash flow growth year-over-year [7][24] - The company generated $100 million of free cash flow in Q4, with total free cash flow for Fiscal 2025 reaching $857 million, up 16% [23][24] - The operating efficiency percentage expanded by 310 basis points to 45% in Fiscal 2025 compared to 42% in Fiscal 2024 [24] Business Line Data and Key Metrics Changes - ARR attributable to Kepware and ThingWorx was approximately $160 million, with constant currency ARR growth of -1% [16] - The company closed its largest Codebeamer deal ever and the largest Onshape deal ever, indicating strong performance in the automotive and medtech verticals [8][9] Market Data and Key Metrics Changes - The company ended the year with record-deferred ARR under contract, providing strong visibility into Fiscal 2026 and beyond [9] - The average term length for contracts increased from approximately two years in Q4 of 2024 to approximately three years in Q4 of 2025 [21] Company Strategy and Development Direction - The company has reached a definitive agreement for TPG to acquire its Kepware and ThingWorx businesses, allowing it to focus on CAD, PLM, ALM, and SLM, with an emphasis on SaaS and AI [5][6] - The company is enhancing its offerings in CAD, PLM, ALM, and SLM to facilitate the building of product data foundations and embedding more AI capabilities [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Fiscal 2026, guiding for ARR growth of 7%-9% including Kepware and ThingWorx, and 7.5%-9.5% excluding them [11][26] - The company anticipates a strong pipeline and deferred ARR balance, which is heavily skewed to Q4, indicating a positive outlook for net new ARR growth [30] Other Important Information - The company plans to return excess cash to shareholders, expecting to buy back between $150 million and $250 million worth of shares per quarter during Fiscal 2026 [13] - The transaction for Kepware and ThingWorx is expected to close in the first half of calendar 2026, with potential cash consideration of up to $725 million [15] Q&A Session Summary Question: Context behind the decision to divest ThingWorx and Kepware - Management emphasized the focus on core priorities and the intelligent product lifecycle vision, stating that the divestiture allows for greater concentration on strategic areas [33][34] Question: OBBA benefit expected in free cash flow guidance - Management confirmed that the $1 billion free cash flow guidance includes some tailwind from the new Section 174 decision, but also noted the impact of increased CapEx related to transitioning an R&D facility [39][40] Question: Characterization of deal structures this quarter - Management clarified that ramp deals were contracted commitments, indicating strong customer demand and a focus on capturing that demand [43][44] Question: Impact of divestiture on CAM business - Management expressed confidence in the addressable market for the intelligent product lifecycle, stating that the divestiture allows for a stronger focus on existing strategies [49][50] Question: Plans for go-to-market changes in Q1 - Management highlighted the successful vertical alignment and the importance of consistent messaging, with plans to integrate AI into industry-specific communications [58][62] Question: Roadmap execution and RPO comments - Management discussed improvements in product execution and the importance of aligning teams to deliver customer value, with approximately 55% of total RPO expected to be recognized over the next 12 months [66][70] Question: Growth potential and key levers for the business - Management indicated that the foundation for sustainable growth is being established, with a focus on executing the intelligent product lifecycle vision and capturing customer demand [74][75]

Financial Data and Key Metrics Changes - In Q4 of Fiscal 2025, the company achieved 8.5% constant currency ARR growth and 16% free cash flow growth year over year [5][22] - The total constant currency ARR at the end of Q4 was $2.446 billion, reflecting an 8.5% increase year over year [19] - Free cash flow for the full fiscal year was $857 million, up 16% from the previous year [22][23] Business Line Data and Key Metrics Changes - ARR attributable to Kepware and ThingWorx was approximately $160 million, with constant currency ARR growth at negative 1% [16] - The revenue contribution from Kepware and ThingWorx, including perpetual licenses and professional services, was approximately $200 million [16] - The average term length for contracts increased from approximately two years in Q4 of 2024 to approximately three years in Q4 of 2025 [20] Market Data and Key Metrics Changes - The company closed its largest Codebeamer deal in the automotive vertical and a significant Windchill competitive displacement win in the medtech vertical [6] - The company reported a record increase in RPO, which was up more than $550 million both sequentially and year over year [21][68] Company Strategy and Development Direction - The company has reached a definitive agreement for TPG to acquire its Kepware and ThingWorx businesses, allowing it to focus on CAD, PLM, ALM, and SLM, with an emphasis on SaaS and AI [4][5] - The strategic decision to divest from Kepware and ThingWorx aligns with the company's focus on the intelligent product lifecycle vision [32][34] - The company plans to return excess cash to shareholders and expects to buy back between $150 million and $250 million worth of shares per quarter during Fiscal 2026 [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving $1 billion of free cash flow in Fiscal 2026, with ARR growth guidance of 7-9% including Kepware and ThingWorx [10][25] - The company anticipates that the divestiture will not significantly disrupt operations and expects to maintain momentum in its go-to-market strategy [10][53] - Management highlighted the importance of structured product data foundations and the role of AI in enhancing customer offerings [11][72] Other Important Information - The company appointed John Stevenson as Chief Product Officer to enhance product operating rhythm and improve roadmap execution [9] - The transaction for the divestiture is expected to close in the first half of calendar 2026, with potential cash consideration of up to $725 million [14][15] Q&A Session Summary Question: Context behind the decision to divest from ThingWorx and Kepware - Management emphasized the focus on core priorities and the intelligent product lifecycle vision, stating that the divestiture allows for greater concentration on these areas [32][33] Question: Impact of cash tax implications on free cash flow guidance - Management confirmed that the $1 billion free cash flow guidance includes some tailwind from the new Section 174 decision, but also factors in increased CapEx related to transitioning an R&D facility [38][39] Question: Characterization of deal structures in Q4 - Management clarified that the majority of large transactions were closed, with ramp deals being contracted commitments rather than uncertain spending [42][44] Question: Thoughts on the CAM business post-divestiture - Management expressed confidence in the addressable market for intelligent product lifecycle and the potential for AI to enhance product data foundations [47][49] Question: Guidance for net new ARR growth - Management indicated a disciplined approach to guidance, factoring in strong deferred ARR and the potential impact of the divestiture on future performance [50][53] Question: Future go-to-market changes - Management highlighted the importance of vertical alignment and the integration of AI into messaging to improve traction and win rates [56][60] Question: Improvements in roadmap execution - Management discussed the focus on aligning teams to execute on AI initiatives and the importance of delivering customer value through product enhancements [64][66][68] Question: Growth potential and key levers for the business - Management noted that building momentum and focusing on the intelligent product lifecycle vision are critical for achieving sustainable growth [71][74]

Financial Performance & Guidance - Q4'25 ARR as reported reached $2478 million, a 10% YoY increase[22] - FY'25 Free Cash Flow was $857 million, a 16% YoY increase[23] - FY'26 Free Cash Flow guidance is approximately $1000 million[19,29] - FY'26 constant currency ARR growth guidance, excluding Kepware and ThingWorx, is 75% to 95%[16,29] - Q1'26 Free Cash Flow guidance is $265 million to $270 million[29] Kepware and ThingWorx Divestiture - The divestiture involves Kepware industrial connectivity and ThingWorx IoT businesses[9] - Estimated net transaction proceeds from the divestiture are approximately $365 million[12,14] - Kepware and ThingWorx contribute approximately $160 million of ARR and $200 million of revenue[15] - Kepware and ThingWorx contribute an estimated $70 million of free cash flow[17] Capital Allocation - The company intends to repurchase between $150 million and $250 million of its common stock per quarter in FY'26[40,80]

Financial Performance - Q4'25 reported ARR of $2,478 million, a 10% increase year-over-year, with constant currency ARR growth of 8.5%[5] - FY'25 total revenue reached $2,739 million, representing a 19% year-over-year growth, with Q4'25 revenue at $894 million, a 43% increase year-over-year[10] - Non-GAAP earnings per share for Q4'25 was $3.47, a 126% increase compared to $1.54 in Q4'24, with FY'25 non-GAAP EPS at $8.00, up 57% year-over-year[10] - Recurring revenue for the three months ended September 30, 2025, was $861,071,000, a 47.8% increase from $582,430,000 for the same period in 2024[38] - Total revenue for the twelve months ended September 30, 2025, reached $2,739,226,000, up 19.2% from $2,298,472,000 in 2024[38] - Net income for the three months ended September 30, 2025, was $354,828,000, compared to $126,523,000 for the same period in 2024, representing a 180.5% increase[38] - Earnings per share for the twelve months ended September 30, 2025, was $6.18, up from $3.14 in 2024, reflecting a 96.2% increase[38] - Non-GAAP net income for the twelve months ended September 30, 2025, was $965.8 million, compared to $613.4 million for the same period in 2024, reflecting a 57.5% growth[42] Cash Flow and Expenses - Operating cash flow for Q4'25 was $104 million, up 6% from $98 million in Q4'24, while free cash flow increased by 7% to $100 million[5] - The company expects FY'26 constant currency ARR growth of 7% to 9%, with operating cash flow projected at approximately $1.03 billion[9] - Total operating expenses for the twelve months ended September 30, 2025, were $1,311,858,000, an increase from $1,265,594,000 in 2024[38] - Free cash flow for the twelve months ended September 30, 2025, was $856.7 million, compared to $735.6 million in 2024, reflecting a 16.5% increase[48] Stock and Shareholder Actions - PTC plans to repurchase approximately $200 million of its common stock in Q1'26 as part of a $2 billion share repurchase authorization[9] - The company anticipates a decrease in Q1'26 fully diluted share count to approximately 120 million shares from 121 million shares in Q1'25[21] Profitability and Margins - The company reported a gross margin of $776,896,000 for the three months ended September 30, 2025, compared to $513,722,000 in 2024, indicating a significant improvement in profitability[38] - GAAP gross margin for Q3 2025 was $776.9 million, up from $513.7 million in Q3 2024, representing a 51.3% increase[42] - GAAP operating income for Q3 2025 was $433.6 million, significantly higher than $194.0 million in Q3 2024, representing a 123.8% increase[42] Revenue Streams - License revenue for the three months ended September 30, 2025, was $484,081,000, a substantial increase from $239,448,000 in 2024[40] - Support and cloud services revenue for the twelve months ended September 30, 2025, was $1,469,180,000, compared to $1,359,355,000 in 2024, marking a growth of 8.1%[40] Company Strategy and Market Position - The divestiture of Kepware and ThingWorx is expected to enhance the company's focus on CAD, PLM, ALM, and SLM solutions[3] - PTC employs over 7,000 people and supports more than 30,000 customers globally, indicating a strong market presence[35] Future Outlook and Risks - The company anticipates potential risks affecting future performance, including macroeconomic conditions and customer adoption of new software solutions[34] - FY'26 guidance includes an expected increase in GAAP and non-GAAP operating expenses by approximately 4% due to growth investments[21] Assets and Equity - Total assets as of September 30, 2025, were $6.62 billion, compared to $6.38 billion a year earlier, showing a 3.8% increase[45] - Stockholders' equity increased to $3.83 billion as of September 30, 2025, from $3.21 billion in 2024, a growth of 19.2%[45]

Core Insights - TPG has reached a definitive agreement to acquire PTC's Kepware and ThingWorx businesses, aiming to enhance their growth and leadership in industrial connectivity and IoT solutions [1][2][7] - The transaction is expected to close in the first half of 2026, pending regulatory approvals and other conditions [4] Company Focus - PTC is shifting its focus towards its Intelligent Product Lifecycle vision, concentrating resources on core offerings such as CAD, PLM, ALM, and SLM, while leveraging AI and SaaS technologies [3][7] - The sale of Kepware and ThingWorx will allow PTC to better address customer challenges by optimizing product data utilization throughout the product lifecycle [3][7] Investment and Growth Potential - TPG plans to invest in the acquired businesses through its U.S. and European private equity platform, providing additional capital and expertise to accelerate growth [2][3] - The acquisition is seen as a generational opportunity to enhance manufacturing processes by bridging operational and information technology [3][7] Business Operations - Kepware serves as a communication platform that facilitates data exchange across various industries, including manufacturing and utilities, while ThingWorx is an IoT platform that enables remote device management and data analysis [3][7] - The partnership with TPG is expected to support the scaling and evolution of these software platforms to meet the changing needs of customers [3][7]

Core Insights - PTC reported strong financial results for Q4 and FY'25, highlighting a strategic focus on its core offerings and a simplified portfolio following the divestiture of Kepware and ThingWorx [2][4][7] - The company achieved record annual cash flow and significant growth in revenue and earnings per share, indicating robust operational execution [2][4][8] Financial Performance - Q4'25 revenue reached $894 million, a 43% increase year-over-year, with constant currency revenue growth of 39% [2][3] - Annual recurring revenue (ARR) was reported at $2.478 billion, reflecting a 10% increase from the previous year, with constant currency ARR growth of 8.5% [2][4] - Operating cash flow for FY'25 was $868 million, a 16% increase year-over-year, while free cash flow also grew by 16% to $857 million [4][8] Earnings Metrics - Earnings per share (EPS) for Q4'25 was $2.94, up 182% from $1.04 in Q4'24, with non-GAAP EPS at $3.47, a 126% increase [2][4] - For FY'25, GAAP EPS was $6.14, compared to $3.12 in FY'24, indicating a 97% increase, while non-GAAP EPS rose to $8.00 from $5.08 [5][6] Strategic Focus - The divestiture of non-core businesses is expected to enhance PTC's focus on its Intelligent Product Lifecycle vision, which includes CAD, PLM, ALM, and SLM [2][4][7] - The company plans to increase share repurchases under a $2 billion authorization, with approximately $200 million expected in Q1'26 [4][8] Future Guidance - For FY'26, PTC anticipates constant currency ARR growth of 7% to 9%, operating cash flow of approximately $1.03 billion, and free cash flow of around $1 billion [4][8] - Revenue guidance for FY'26 is set between $2.650 billion and $2.915 billion, reflecting a potential year-over-year change of -3% to 6% [8][9]

Core Insights - PTC Therapeutics reported a strong third quarter for 2025, driven by the global launch of Sephience, which is expected to become the standard of care for individuals with PKU [1][4][5] Financial Performance - Total revenue for Q3 2025 was $211 million, an increase from $196.8 million in Q3 2024 [5] - Sephience generated $19.6 million in revenue during Q3 2025, with $14.4 million from the US and $5.2 million from international markets [5] - The DMD franchise contributed $85.9 million in revenue, with Translarna at $50.7 million and Emflaza at $35.2 million [5] - Royalty revenue from Evrysdi was $70.8 million for Q3 2025, up from $61.4 million in Q3 2024 [5] Expense Overview - GAAP R&D expenses were $100.2 million for Q3 2025, down from $161.4 million in Q3 2024 [5] - GAAP SG&A expenses increased to $84 million in Q3 2025 from $73.5 million in Q3 2024 [5] - Non-GAAP R&D expenses were $91 million, while non-GAAP SG&A expenses were $73.8 million for Q3 2025 [5] Net Income and Cash Position - The company reported a net income of $15.9 million for Q3 2025, a significant improvement from a net loss of $106.7 million in Q3 2024 [5] - Cash, cash equivalents, and marketable securities totaled $1.688 billion as of September 30, 2025, compared to $1.140 billion at the end of 2024 [5] Future Guidance - PTC anticipates full-year 2025 total revenue between $750 million and $800 million [4][8] - The company is planning additional marketing authorization reviews for Sephience, including in Japan, with a decision expected in Q4 2025 [5]

Core Insights - Vishay Intertechnology, Inc. has launched a new series of insulated, surface-mount inrush current limiting positive temperature coefficient (PTC) thermistors aimed at enhancing board-level efficiency and reducing costs in automotive and industrial applications [1][2]. Product Features - The PTCES series devices can handle maximum energy up to 340 J and high maximum voltages of 1200 VDC, which is significantly higher than competing devices [1][2]. - Compared to competitors, the PTC thermistors provide up to 260% higher energy handling capabilities, allowing for fewer components in circuits, thus saving board space and lowering overall costs [2]. - The series offers 20% higher maximum voltages than competing devices, accommodating a wider range of design requirements [2]. Applications - These thermistors are designed for current limitation and overload protection in various applications, including AC/DC and DC/DC converters, DC-Link, energy dump, emergency discharge circuits, on-board chargers, battery charging equipment, and motor drives [3]. - The devices are self-protecting and can withstand over 100,000 inrush power cycles, and they are AEC-Q200 qualified for shock and vibration, negating the need for reinforced mounting adhesives [3]. Technical Specifications - The PTCES series consists of barium titanate thermistors with a solder-connected homogeneous ceramic PTC, encapsulated in a UL 94 V-0 compliant, self-extinguishing, washable plastic housing with insulation up to 3 kVAC [4]. - The devices have a low profile of 9.6 mm and are RoHS-compliant and halogen-free, allowing for automatic mounting by pick and place equipment to reduce placement costs [4]. - Key specifications include R25 values ranging from 60 to 1000 Ω, maximum AC voltage from 350 to 800 VRMS, maximum DC voltage from 500 to 1200 VDC, and operating temperatures from -40 to +105 °C [5]. Company Overview - Vishay Intertechnology is a major manufacturer of discrete semiconductors and passive electronic components, serving various markets including automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical [6]. - The company is listed on the NYSE under the ticker VSH and is recognized as a Fortune 1000 Company [6].

Core Insights - PTC Inc. is a global provider of software solutions and services for manufacturing companies, with a market cap of $24.3 billion and operations in the Americas, Europe, and the Indo-Pacific [1] Financial Performance - Analysts expect PTC to report an EPS of $1.90 for Q4, representing a 63.8% increase from $1.16 in the same quarter last year [2] - For the full fiscal year 2025, PTC's EPS is projected to be $5.42, up 47.7% from $3.67 in fiscal 2024, with further growth expected in fiscal 2026 to $5.81 per share, a 7.2% year-over-year increase [3] Stock Performance - PTC's stock has increased by 11.6% over the past 52 weeks, underperforming compared to the S&P 500 Index's 14.8% and the Technology Select Sector SPDR Fund's 24.8% gains during the same period [4] - Following the release of strong Q3 results, PTC's stock rose by 6.1%, with total revenues for the quarter increasing by 24.2% year-over-year to $643.9 million, exceeding expectations by 10.6% [5] Analyst Ratings - The consensus rating for PTC is "Moderate Buy," with 12 "Strong Buys," one "Moderate Buy," and six "Holds" among 19 analysts [6] - The mean price target for PTC is $227.17, indicating a potential upside of 10.3% from current price levels [6]