PTC COMPLETES DIVESTITURE OF KEPWARE AND THINGWORX BUSINESSES

Core Viewpoint - PTC has successfully completed the divestiture of its Kepware and ThingWorx businesses to TPG, allowing the company to concentrate on its Intelligent Product Lifecycle vision [2][3][5]. Financial Details - PTC received cash proceeds of $523 million from the sale, with net after-tax proceeds expected to be approximately $375 million after accounting for divestiture-related costs and taxes [3][5]. - The company plans to utilize the net after-tax proceeds for share repurchases, including a $375 million accelerated share repurchase agreement in Q2'26 [4][5]. Updated Financial Guidance - PTC has updated its financial guidance for FY'26 and Q2'26 to reflect the impact of the divestiture: - FY'26 revenue guidance is adjusted to $2,540 million to $2,805 million, down from $2,675 million to $2,940 million [6]. - Q2'26 revenue guidance is revised to $685 million to $745 million, compared to previous estimates of $710 million to $770 million [6]. - Operating cash flow guidance for FY'26 is now approximately $880 million, down from $1,030 million [8]. - Free cash flow guidance for FY'26 is adjusted to approximately $850 million, down from $1,000 million [9]. Earnings Per Share (EPS) Guidance - The updated GAAP EPS guidance for FY'26 is now $6.94 to $9.66, reflecting the impact of the divestiture [10]. - Non-GAAP EPS guidance for FY'26 is adjusted to $6.36 to $8.84 [10]. Strategic Focus - The divestiture allows PTC to enhance its focus on its Intelligent Product Lifecycle vision, indicating a strategic shift towards core competencies in product lifecycle management [3][5].