PTC ANNOUNCES FIRST FISCAL QUARTER 2026 RESULTS

Core Insights - PTC reported strong financial results for Q1 2026, driven by large deal volumes and competitive displacements, indicating a robust demand capture strategy [2][4] - The company's Intelligent Product Lifecycle vision is gaining traction, emphasizing the importance of product data as a key asset for AI-driven transformation [3] Financial Performance - Annual Recurring Revenue (ARR) for Q1 2026 was $2,494 million, a 13% increase from $2,205 million in Q1 2025 [4] - Revenue reached $686 million, reflecting a 21% year-over-year growth [4][5] - Operating cash flow increased by 13% to $270 million, while free cash flow also rose by 13% to $267 million [4][7] - Earnings per share (EPS) for Q1 2026 was $1.39, up 104% from $0.68 in Q1 2025 [4][6] Strategic Initiatives - The company is executing a $2 billion share repurchase program, having repurchased $200 million worth of shares in Q1 2026 [7][9] - PTC is embedding AI across its portfolio to enhance customer adoption and value [7] - The divestiture of Kepware and ThingWorx is progressing, with expected net after-tax proceeds of approximately $365 million to be used for further share repurchases [11][20] Guidance and Future Outlook - For FY 2026, PTC expects constant currency ARR growth of 7% to 9%, with guidance for revenue between $2,675 million and $2,940 million [10][20] - Operating cash flow is projected to be around $1,030 million, with free cash flow also expected to be approximately $1,000 million [10][20] - The company anticipates a decrease in fully diluted shares to approximately 119 million by Q2 2026 [20]