Q3 2026 Ptc Inc Earnings Call Transcript
Key Points
- PTC Inc (PTC) delivered strong Q3 results with $60 million in net new ARR, exceeding the high end of guidance for constant currency ARR and free cash flow growth.
- The company's go-to-market transformation is showing results, with improved vertical expertise, executive-level engagement, and cross-team collaboration leading to notable customer wins, including a competitive PLM deal with a major defense contractor.
- AI innovation is gaining traction, highlighted by the largest AI deal ever—a near seven-figure ServiceMax AI deal with a major industrial automation company, demonstrating 50% reduction in technician preparation time and 4% productivity improvement.
- PTC Inc (PTC) raised the midpoint of its annual ARR growth guidance to 9.25%, reflecting strong demand capture and pipeline visibility, with deferred ARR expected to convert into revenue in Q4.
- The company is expanding its product portfolio with new innovations like PTC Jetstream, Onshape Labs, and Creo AI, which are driving customer demand for modernizing product data foundations and expanding total addressable market.
- Q3 revenue of $600 million was below the midpoint of guidance due to a shortened duration of a single large contract expansion, though deal durations across the broader business remain stable.
- The divestiture of Kepware and ThingWorx impacts year-over-year comparisons for revenue, EPS, and cash flow, as fiscal 2026 includes these assets only until March 13, 2026, while fiscal 2025 includes them for the full year.
- Q4 free cash flow guidance is approximately $15 million, lower year over year due to expected capital gains outflows from the Kepware and ThingWorx divestiture.
- AI monetization is still in early stages, with customers starting with pilots and scaling only after proven ROI, meaning stand-alone AI revenue contributions are expected to be medium- to long-term rather than immediate.
- The company faces execution risks in closing Q4 and sustaining momentum, as it must continue to build on demand capture and convert deferred ARR into net new ARR to meet raised guidance targets.
Good evening, ladies and gentlemen. Thank you for standing by, and welcome to PTC's 2026 third-quarter conference call. (Operator Instructions)
I would now like to turn the call over to Mike Maguire, PTC's Head of Investor Relations. Please go ahead.
Thank you, operator, and good afternoon, everyone. Welcome to PTC's third-quarter 2026 conference call. On the call today are Neil Barua, Chief Executive Officer; and Jen DiRico, Chief Financial Officer. Today's conference call is being broadcast live through an audio webcast, and and a replay of the call will be available later today at www.ptc.com.
During this call, PTC will make forward-looking statements, including guidance as to future operating results. Because such statements deal with future events, actual results may differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
