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PTC to Release Q2 Earnings: Here's What Investors Should Expect
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Key Takeaways
PTC is set to report Q2 FY26 results May 6, with revenue seen at $710M-$770M and EPS at $1.93-$2.54.
PTC's PLM and CAD segments, along with ARR growth and AI integration, are expected to drive performance.
PTC benefits from strong pipeline momentum, improved sales execution and expanding AI-powered offerings.
PTC Inc. (PTC - Free Report) is scheduled to report second-quarter fiscal 2026 results on May 6, after market close.
For the quarter, PTC anticipates revenues in the $710-$770 million band. Non-GAAP EPS is projected in the range of $1.93-$2.54.
The Zacks Consensus Estimate for revenues is pegged at $713.1 million, up 12.1% from the year-ago reported number. The consensus estimate for earnings is pinned at $2.06 per share, up 15.1% from a year ago, unchanged in the past 30 days.
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters. It delivered a trailing four-quarter average earnings surprise of 34.6%.
Image Source: Zacks Investment Research
In the past year, shares of PTC have lost 13% compared with the Zacks Computer – Software industry’s decline of 6.5%.
Factors Shaping PTC’s Q2 Results
PTC's core business segments, product lifecycle management (PLM) and computer-aided design (CAD) solutions, remain its primary revenue contributors and are likely to have positively influenced performance in the to-be-reported quarter. The company has been enhancing its focus on the Intelligent Product Lifecycle vision, centered on CAD, PLM, Application Lifecycle Management (ALM), Service Lifecycle Management (SLM), with increasing importance on SaaS and AI.
The company’s solutions help industrial enterprises to enhance operational efficiency, accelerate product and service innovation, and boost workforce productivity. Growing clout of the company’s major technology platforms, including its 3D modeling (CAD) offering Creo; lifecycle management (PLM) solution Windchill; data orchestration (IIoT) offering ThingWorx; and experience creation (AR) product Vuforia Studio, is likely to have positively impacted the company’s top line.
The company’s go-to-market execution transformation is progressing well. In the last reported quarter, the company expanded seller capacity, improved quota attainment and saw productivity of ramping representatives more than double year over year, driven by better territory alignment, enhanced enablement and increased vertical focus. The company is broadening customer and partner engagements from a single lifecycle stage to a more holistic approach centered on the Intelligent Product Lifecycle, with a strong emphasis on product data and AI.
For second-quarter fiscal 2026, PTC expects continued growth in annual recurring revenue (ARR), supported by solid pipeline conversion and improving deal momentum. The company guided for ARR growth on a constant currency basis, excluding contributions from Kepware and ThingWorx, indicating steady underlying demand across its core segments. On the last earnings call, management highlighted that some deal timing could shift between the first quarter and the second quarter, but overall pipeline visibility remains strong.
Generative-AI initiatives and product portfolio enhancements augur well. The company advanced its product portfolio with generative AI capabilities across PLM, ALM, SLM and CAD. PTC continues to embed AI across its portfolio to address high-value customer workflows.
In the fiscal second quarter, PTC plans to buy back approximately $250 million of shares. Cash from operations is expected to be $315-$320 million, and free cash flow is forecasted to be $310-$315 million. The company expects second-quarter free cash flow generation to remain healthy, reflecting disciplined cost management and ongoing operational efficiency.
However, the company continues to face challenges from intense competition in the CAD market and volatility in foreign exchange rates amid a tough macro environment. Higher investment-driven expenses might have weighed on margin performance. Increasing product complexity, tighter timelines and fragmented supply chains are added concerns.
Key Recent Developments
On April 28, 2026, PTC announced the launch of Windchill AI Assistant, a new generative AI capability integrated into its Windchill PLM platform through a natural language chat interface. The tool helps engineering and manufacturing teams quickly find, understand and use complex product data by allowing users to ask questions in plain language and receive contextual answers or summaries from existing documents.
On April 1, 2026, PTC announced that BMW Group implemented its Codebeamer ALM solution as the foundation for next-generation digital engineering. The move marks BMW’s transition from fragmented legacy requirements systems to a unified data model within Codebeamer.
On March 17, 2026, PTC introduced a new robotics design-to-simulation workflow integrating its Onshape CAD/PDM platform with NVIDIA Corporation’s Isaac Sim, unveiled at NVIDIA GTC 2026. The solution enables engineers to seamlessly move from design to simulation with a single source of truth, eliminating manual rework and automatically updating simulations when designs change.
On March 16, 2026, PTC completed the sale of its Kepware industrial connectivity and ThingWorx IoT businesses to TPG Inc. as part of a strategic shift toward its core Intelligent Product Lifecycle offerings. The company received $523 million in cash proceeds at closing, with net after-tax proceeds of approximately $375 million after adjustments, taxes, and transaction costs.
On Feb. 26, 2026, PTC unveiled a fully cloud-native Model-Based Definition (MBD) capability integrated directly into its Onshape computer-aided design (CAD) and product data management (PDM) platform. The new functionality empowers engineering teams to embed manufacturing information within 3D models from the earliest stages of product development.
On Feb. 12, 2026, PTC announced that SPG Company has selected its FlexPLM retail product lifecycle management solution to replace a legacy system and support faster development cycles with a scalable, cloud-based platform.
What Our Model Says About PTC
Our proven model does not predict an earnings beat for PTC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
PTC has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three stocks you may want to consider, as our model shows that these have the right elements to post an earnings beat in this reporting cycle.
CDW is scheduled to report quarterly earnings on May 6. The Zacks Consensus Estimate for CDW’s to-be-reported quarter’s earnings and revenues is pegged at $2.28 per share and $5.4 billion, respectively. Shares of CDW have lost 16.1% in the past year.
Flex Ltd. (FLEX - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank #2 at present. FLEX is scheduled to report quarterly figures on May 6. The Zacks Consensus Estimate for FLEX’s to-be-reported quarter’s earnings and revenues is pegged at 86 cents per share and $6.92 billion, respectively. Shares of FLEX are up 149.8% in the past year.
Curtiss-Wright Corporation (CW - Free Report) has an Earnings ESP of +0.72% and a Zacks Rank #2 at present. CDW is scheduled to report quarterly figures on May 6. The Zacks Consensus Estimate for AMD’s to-be-reported quarter’s earnings and revenues is pegged at $3.32 per share and $867.2 million, respectively. Shares of CW are up 98.3% in the past year.
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PTC to Release Q2 Earnings: Here's What Investors Should Expect
Key Takeaways
PTC Inc. (PTC - Free Report) is scheduled to report second-quarter fiscal 2026 results on May 6, after market close.
For the quarter, PTC anticipates revenues in the $710-$770 million band. Non-GAAP EPS is projected in the range of $1.93-$2.54.
The Zacks Consensus Estimate for revenues is pegged at $713.1 million, up 12.1% from the year-ago reported number. The consensus estimate for earnings is pinned at $2.06 per share, up 15.1% from a year ago, unchanged in the past 30 days.
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters. It delivered a trailing four-quarter average earnings surprise of 34.6%.
Image Source: Zacks Investment Research
In the past year, shares of PTC have lost 13% compared with the Zacks Computer – Software industry’s decline of 6.5%.
Factors Shaping PTC’s Q2 Results
PTC's core business segments, product lifecycle management (PLM) and computer-aided design (CAD) solutions, remain its primary revenue contributors and are likely to have positively influenced performance in the to-be-reported quarter. The company has been enhancing its focus on the Intelligent Product Lifecycle vision, centered on CAD, PLM, Application Lifecycle Management (ALM), Service Lifecycle Management (SLM), with increasing importance on SaaS and AI.
The company’s solutions help industrial enterprises to enhance operational efficiency, accelerate product and service innovation, and boost workforce productivity. Growing clout of the company’s major technology platforms, including its 3D modeling (CAD) offering Creo; lifecycle management (PLM) solution Windchill; data orchestration (IIoT) offering ThingWorx; and experience creation (AR) product Vuforia Studio, is likely to have positively impacted the company’s top line.
The company’s go-to-market execution transformation is progressing well. In the last reported quarter, the company expanded seller capacity, improved quota attainment and saw productivity of ramping representatives more than double year over year, driven by better territory alignment, enhanced enablement and increased vertical focus. The company is broadening customer and partner engagements from a single lifecycle stage to a more holistic approach centered on the Intelligent Product Lifecycle, with a strong emphasis on product data and AI.
For second-quarter fiscal 2026, PTC expects continued growth in annual recurring revenue (ARR), supported by solid pipeline conversion and improving deal momentum. The company guided for ARR growth on a constant currency basis, excluding contributions from Kepware and ThingWorx, indicating steady underlying demand across its core segments. On the last earnings call, management highlighted that some deal timing could shift between the first quarter and the second quarter, but overall pipeline visibility remains strong.
Generative-AI initiatives and product portfolio enhancements augur well. The company advanced its product portfolio with generative AI capabilities across PLM, ALM, SLM and CAD. PTC continues to embed AI across its portfolio to address high-value customer workflows.
PTC Inc. Price and EPS Surprise
PTC Inc. price-eps-surprise | PTC Inc. Quote
In the fiscal second quarter, PTC plans to buy back approximately $250 million of shares. Cash from operations is expected to be $315-$320 million, and free cash flow is forecasted to be $310-$315 million. The company expects second-quarter free cash flow generation to remain healthy, reflecting disciplined cost management and ongoing operational efficiency.
However, the company continues to face challenges from intense competition in the CAD market and volatility in foreign exchange rates amid a tough macro environment. Higher investment-driven expenses might have weighed on margin performance. Increasing product complexity, tighter timelines and fragmented supply chains are added concerns.
Key Recent Developments
On April 28, 2026, PTC announced the launch of Windchill AI Assistant, a new generative AI capability integrated into its Windchill PLM platform through a natural language chat interface. The tool helps engineering and manufacturing teams quickly find, understand and use complex product data by allowing users to ask questions in plain language and receive contextual answers or summaries from existing documents.
On April 1, 2026, PTC announced that BMW Group implemented its Codebeamer ALM solution as the foundation for next-generation digital engineering. The move marks BMW’s transition from fragmented legacy requirements systems to a unified data model within Codebeamer.
On March 17, 2026, PTC introduced a new robotics design-to-simulation workflow integrating its Onshape CAD/PDM platform with NVIDIA Corporation’s Isaac Sim, unveiled at NVIDIA GTC 2026. The solution enables engineers to seamlessly move from design to simulation with a single source of truth, eliminating manual rework and automatically updating simulations when designs change.
On March 16, 2026, PTC completed the sale of its Kepware industrial connectivity and ThingWorx IoT businesses to TPG Inc. as part of a strategic shift toward its core Intelligent Product Lifecycle offerings. The company received $523 million in cash proceeds at closing, with net after-tax proceeds of approximately $375 million after adjustments, taxes, and transaction costs.
On Feb. 26, 2026, PTC unveiled a fully cloud-native Model-Based Definition (MBD) capability integrated directly into its Onshape computer-aided design (CAD) and product data management (PDM) platform. The new functionality empowers engineering teams to embed manufacturing information within 3D models from the earliest stages of product development.
On Feb. 12, 2026, PTC announced that SPG Company has selected its FlexPLM retail product lifecycle management solution to replace a legacy system and support faster development cycles with a scalable, cloud-based platform.
What Our Model Says About PTC
Our proven model does not predict an earnings beat for PTC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
PTC has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three stocks you may want to consider, as our model shows that these have the right elements to post an earnings beat in this reporting cycle.
CDW Corporation (CDW - Free Report) currently has an Earnings ESP of +1.90% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
CDW is scheduled to report quarterly earnings on May 6. The Zacks Consensus Estimate for CDW’s to-be-reported quarter’s earnings and revenues is pegged at $2.28 per share and $5.4 billion, respectively. Shares of CDW have lost 16.1% in the past year.
Flex Ltd. (FLEX - Free Report) has an Earnings ESP of +0.93% and a Zacks Rank #2 at present. FLEX is scheduled to report quarterly figures on May 6. The Zacks Consensus Estimate for FLEX’s to-be-reported quarter’s earnings and revenues is pegged at 86 cents per share and $6.92 billion, respectively. Shares of FLEX are up 149.8% in the past year.
Curtiss-Wright Corporation (CW - Free Report) has an Earnings ESP of +0.72% and a Zacks Rank #2 at present. CDW is scheduled to report quarterly figures on May 6. The Zacks Consensus Estimate for AMD’s to-be-reported quarter’s earnings and revenues is pegged at $3.32 per share and $867.2 million, respectively. Shares of CW are up 98.3% in the past year.