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Dec 31, 2025
PTC Q1 2026 Earnings Report
PTC reported solid financial results for the first fiscal quarter ended December 31, 2025, driven by large deal volume and competitive displacements.
Key Takeaways
PTC delivered strong financial results in Q1'26, with constant currency ARR growth of 8.4% and operating and free cash flow growth of 13%. The company also executed on its share repurchase authorization, repurchasing $200 million in Q1'26.
Constant currency ARR grew by 8.4%, or 9.0% excluding Kepware and ThingWorx.
Operating and free cash flow both increased by 13% year-over-year.
The company repurchased $200 million of shares in Q1'26 as part of its $2 billion authorization.
PTC's Intelligent Product Lifecycle vision is gaining momentum, with core products serving as trusted systems of record for product data and AI.
Revenue by Segment
Forward Guidance
PTC provided full fiscal year 2026 and second fiscal quarter guidance, anticipating continued growth in ARR, revenue, and earnings per share, while also planning significant share repurchases.
Positive Outlook
- FY'26 constant currency ARR growth is projected to be 7% to 9%.
- FY'26 constant currency ARR excluding Kepware and ThingWorx is expected to grow 7.5% to 9.5%.
- FY'26 revenue is guided between $2,675 million and $2,940 million.
- FY'26 non-GAAP EPS is projected to be between $6.69 and $9.15.
- The company targets repurchasing approximately $1.115 billion to $1.315 billion of shares in FY'26.
Challenges Ahead
- Guidance does not fully account for the effects of the Kepware and ThingWorx divestiture, except for incurred costs.
- Cash flow, revenue, and EPS guidance will be updated upon the closing of the divestiture.
- Approximately $160 million of divestiture-related expense payments and cash taxes are expected in FY'26.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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