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Amundi increased its holdings in shares of PTC Inc. (NASDAQ: PTC) by 151.9% during the undefined quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 1,725,555 shares of the technology company's stock after buying an additional 1,040,656 shares during the period. Amundi

Key Takeaways PTC trades at 5.54 times forward sales, below its five-year median of 7.35 times.PTC's fiscal third-quarter revenue fell 7%, while operating margin dropped 290 basis points.PTC needs $79M-$92M in fourth-quarter net new annual run rate to meet its annual growth outlook. PTC Inc. (PTC - Free Report) now presents a more balanced investment debate after a sharp pullback reset expectations and valuation. The lower multiple improves the entry-point discussion, but the latest quarter did not remove execution questions.

Investors are weighing buyback support and stronger annual run rate visibility against softer revenue trends, margin pressure and a fourth quarter that carries a heavier conversion burden.

PTC's Valuation Has Reset Below Its Five-Year MedianPTC trades at 5.54 times forward 12-month sales, below its five-year median of 7.35 times. The multiple is also slightly below the software subindustry’s 5.7 times, giving the stock a relative discount within its peer set.

That discount is not unqualified. The S&P 500’s 4.87-times multiple remains lower, and PTC’s weaker recent share-price performance shows that investors are still applying a penalty for uneven operating momentum.

PTC's Mixed Quarter Clouds the Near-Term CasePTC reported fiscal third-quarter non-GAAP earnings of $1.58 per share, below the $1.60 consensus. Revenues of $600 million missed estimates by 2.9% and declined 7% year over year.

Margin trends also showed pressure. Non-GAAP operating margin fell 290 basis points to 41%, limiting the argument that lower valuation alone is enough to offset near-term softness.

Autodesk, Inc. (ADSK - Free Report) remains a relevant comparison because its design and make software also serves engineering and manufacturing users. Dassault Systèmes SE (DASTY - Free Report) , with its 3DEXPERIENCE platform, is another reference point for investors comparing CAD, product lifecycle management and digital engineering software vendors.

PTC's Guidance Requires a Strong Fourth QuarterPTC’s fiscal 2026 outlook calls for revenues of $2.69 billion to $2.75 billion and non-GAAP earnings of $7.87 to $8.42 per share. The guidance range leaves room for a better finish, but it still depends on deal conversion.

The annual run rate target is the key watch item. After generating $60 million of sequential net new annual run rate in the third quarter, PTC needs $79 million to $92 million in the fourth quarter to reach its annual growth outlook.

PTC’s Buybacks Lift Per-Share Support but Reduce FlexibilityPTC repurchased $525 million of common stock in the third quarter and expects full-year repurchases of about $1.625 billion. A smaller diluted share count can support earnings per share and signals management’s willingness to act when it sees the stock as compressed.

The trade-off is balance-sheet flexibility. Cash declined to $351.5 million, while debt rose to about $1.4 billion, leaving less room for error if customer conversions or annual run rate timing slip.

PTC's Price Target Offers Limited but Positive UpsideThe $150 price target compares with a $136.30 reference price, implying positive but moderate upside. The target is based on 5.8 times forward sales, which is above the current valuation but still close to the software subindustry level.

That upside is constructive rather than decisive. It does not fully offset concerns around competitive pressure, foreign exchange exposure and PTC’s reliance on a strong fourth quarter.

PTC's Scores Favor Patience Over AggressionThe bottom line is that PTC’s reset valuation improves the stock’s risk-reward profile, but the case still requires cleaner execution. The pullback has created a more reasonable multiple, yet fiscal third-quarter misses and fourth-quarter annual run rate demands keep the investment debate open.

PTC currently carries a Zacks Rank #3 (Hold), which aligns with a mixed near-term setup rather than a clear buying signal. Its Value Score of C recognizes the valuation reset, while Growth Score, Momentum Score and VGM Score of D suggest investors may need more evidence of earnings acceleration and stronger stock momentum before taking a more aggressive stance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways PTC links governed product data across engineering, service and supply chains to support trusted AI workflows.PTC's ServiceMax AI won near seven-figure deals after pilots cut prep time 50% and lifted productivity 4%.PTC raised fiscal 2026 constant-currency annual run rate guidance to 9%-9.5%, implying $214M net growth. PTC Inc. (PTC - Free Report) is leaning into a theme that now cuts across industrial software: manufacturers want cleaner product data, governed workflows and cloud collaboration before they scale artificial intelligence.

The company’s intelligent product lifecycle strategy ties computer-aided design, product lifecycle management, application lifecycle management and service lifecycle management to decisions across engineering, service and supply chains.

PTC Makes Governed Data the Foundation for AIPTC’s AI argument starts with data discipline. Industrial customers manage designs, configurations, bills of material, source code and service records that need traceability and access controls.

That makes PTC’s systems of record more strategic. If AI must work inside trusted product workflows, Windchill, Creo, Codebeamer, Arena and ServiceMax can become the data layer rather than just task-specific tools.

PTC is adding cloud and AI capabilities through Onshape, Windchill+, Creo AI, PTC Orbit, Onshape Labs and PTC Jetstream. These offerings extend product data from design into quality, service and supply-chain processes.

Onshape’s cloud-native architecture and collaboration model are also drawing AI-related usage. Autodesk (ADSK - Free Report) remains a relevant peer in design software, while Dassault Systèmes (DASTY - Free Report) is another industrial software name tied to 3D design, simulation and lifecycle workflows.

PTC Sees AI Pilots Begin to Scale Into RevenuePTC’s clearest monetization proof came from ServiceMax AI. The company won a near seven-figure agreement with a large industrial automation customer after a pilot reduced technician preparation time by 50% and improved service workforce productivity by 4%.

Management also pointed to a global heating, ventilation and air conditioning customer that expanded to a near seven-figure ServiceMax AI deal. The pipeline is growing, but adoption is still moving from focused workflows toward broader deployments.

PTC Broadens Reach Across Service and Supply ChainsThe ServiceMax AI example shows how PTC can move beyond engineering departments. Asset intelligence and field service use cases give the company a path to connect product records with technician activity and installed-base performance.

Supply-chain analysis is another extension. Arena’s supply-chain intelligence and PTC Jetstream can bring product data to more users, which may increase participation across customer organizations rather than keeping product lifecycle management limited to engineers.

PTC Wins Reflect Demand for Platform ConsolidationPTC’s recent wins show customers are standardizing around fewer product platforms. Its aerospace and defense win with Windchill involved a competitive displacement and was tied to modernization of engineering and manufacturing operations.

The U.S. Army’s Windchill selection, Mazda’s Codebeamer adoption, Toyota Racing Development’s use of Creo and Windchill and the Onshape-Altium integration point to the same need. Siemens AG (SIEGY - Free Report) , through its digital industries software portfolio, remains part of the broader competitive context as manufacturers choose platforms for complex product development.

PTC's Scores Temper the Emerging Trend StoryThe bottom line is that PTC has credible secular drivers in AI, cloud engineering, service automation and product data governance. The company also raised and narrowed its constant-currency annual run rate guidance for fiscal 2026 to 9% to 9.5%, with a midpoint implying $214 million in net annual run rate growth.

The stock currently carries a Zacks Rank #3 (Hold). That rank suggests investors should avoid treating the trend story as a near-term buy signal by itself. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PTC’s Growth Score of C, Momentum Score of D and VGM Score of C add a more balanced reading. Style Scores are designed to complement the Zacks Rank, so investors may want to track scaled AI revenue, annual run rate conversion and cloud adoption before assigning full value to the emerging trend opportunity.

, /PRNewswire/ -- PTC (Nasdaq: PTC) today announced that it will participate in the following conferences.

 What:

 Oppenheimer 29th Annual Technology, Internet & Communications Virtual Conference

      When:

 1x1's on Wednesday, August 12, 2026

 What:

 Citi's 2026 Global TMT Conference

      When:

 Wednesday, September 9, 2026

 What:

 Berenberg European Conference

      When:

 1x1's on Tuesday, December 1, 2026

What:

 Barclays 24th Annual Global Technology Conference

When:

 Wednesday, December 9, 2026

View conference schedule HERE.

Please note that statements made at each conference are as of the date of the respective conference and PTC does not assume any obligation to update any statements made live or the archived calls. Matters discussed may include forward-looking statements about PTC's anticipated financial results and growth, as well as about the development of products and markets, which are based on current plans and assumptions. Actual results in future periods may differ materially from current expectations due to a number of risks and uncertainties, including those described from time to time in reports filed by PTC with the U.S. Securities and Exchange Commission, including PTC's most recent reports on Form 10-K and 10-Q.

About

PTC (NASDAQ: PTC) is a global software company that enables manufacturers and product companies to digitally transform how they design, manufacture, and service the physical products the world relies on. Headquartered in Boston, Massachusetts, PTC employs over 7,000 people and supports more than 30,000 customers globally. For more information, please visit www.ptc.com.

Investors

Mike Maguire
[email protected]
[email protected] 

SOURCE PTC Inc.

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On August 06, 2026, PTC Inc PTC shares rose 5.9% to a current price of $147.66, showing a notable improvement from a 52-week low of $108.50. Despite this positive movement, the stock remains significantly impacted by broader market trends, with a year-to-date decline of 15.2% and a one-year decline of 31.6%.

GF Value™ verdict: PTC is currently trading at $147.66, which is 33.3% below its GF Value™ estimate of $221.47.GF Score™ of 79/100 indicates an above-average overall assessment of the company.Insider activity has shown some caution, with $0.1M in sales over the last three months and no buying activity.Is PTC Overvalued or Undervalued?Based on the GF Value™, PTC Inc is currently undervalued. With a current price of $147.66 compared to a fair value estimate of $221.47, investors have a margin of safety of 33.3%. This significant undervaluation suggests that the stock may represent an attractive buying opportunity, provided that future performance aligns with market expectations. GF Value™ is GuruFocus' proprietary intrinsic-value estimate, derived from a combination of historical trading multiples, past business growth, and projections of future performance.

While the stock's notable undervaluation is a positive signal, it is essential to consider potential risks, such as market volatility and changing industry dynamics. The GF Valuation label indicates that PTC is significantly undervalued, but investors should remain aware of the broader economic environment that may influence stock performance moving forward.

How Does PTC's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)14.3x46.6xForward P/E16.8xN/APTC's current P/E ratio of 14.3x is significantly below its 5-year median P/E of 46.6x, indicating that the stock is trading at a much lower valuation than in the past. The results of this P/E analysis align with the GF Value™ verdict, reinforcing the notion that PTC is currently undervalued in the market.

What Does PTC's GF Score™ Tell Us?The GF Score™ is a comprehensive assessment that evaluates a company's financial health, growth potential, and overall performance. PTC's GF Score™ of 79/100 reflects its above-average standing in several areas, particularly in financial strength and growth potential, while highlighting some concerns in valuation and momentum.

MetricRatingGF Score™79/100Financial Strength7/10Profitability8/10Growth9/10Valuation4/10Momentum2/10PTC's strengths lie in its growth potential (ranked 9/10) and profitability (ranked 8/10), indicating that the company is well-positioned for future expansion and maintains solid earnings capabilities. However, the lower ranking in valuation (4/10) and momentum (2/10) suggests that the stock may face challenges in the short term, which investors should consider when evaluating the overall risk and potential of this investment.

What Are Gurus and Insiders Doing with PTC?Currently, 7 gurus hold shares of PTC, with 4 increasing their positions while 6 have trimmed their holdings in recent quarters. This mixed signal from institutional investors indicates varying levels of confidence in the company's prospects. The guru 13F activity is a significant differentiator for GuruFocus, providing insights that are not available through other financial platforms.

In terms of insider activity, there has been a small amount of selling, with insiders offloading $0.1M worth of shares over the last three months. The lack of buying activity from insiders may suggest caution among those closest to the company regarding its near-term performance. This insider behavior should be monitored as a potential indicator of management's outlook on the company's future.

What This Means for InvestorsOverall, PTC Inc appears undervalued based on the GF Value™ estimate, presenting a potential opportunity for investors looking for growth in the software sector. However, the mixed signals from gurus and insiders, along with the company's lower momentum and valuation scores, warrant careful consideration. While the intrinsic value indicates a positive outlook, investors should remain vigilant about market conditions that could impact PTC's performance moving forward.

For more details, you can visit the PTC Inc PTC stock page for further insights into the company's performance and metrics.

Frequently Asked QuestionsWhat is PTC's GF Score™?

PTC's GF Score™ is 79/100, indicating an above-average overall assessment of the company's financial health and growth potential.

Is PTC overvalued or undervalued?

PTC is currently undervalued, with a GF Value™ estimate of $221.47 compared to a current price of $147.66.

What is PTC's P/E ratio?

PTC's P/E ratio is 14.3x, which is significantly below its 5-year median P/E of 46.6x, indicating a substantial decline in its historical valuation levels.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Shares of PTC Inc. (NASDAQ: PTC - Get Free Report) have received a consensus rating of "Hold" from the fourteen brokerages that are currently covering the firm, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, six have issued a hold rating and seven have assigned a buy rating to the company.

It has been about a month since the last earnings report for PTC Inc. (PTC - Free Report) . Shares have added about 16.6% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is PTC Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

PTC's Q3 Earnings Miss EstimatesPTC reported third-quarter fiscal 2026 non-GAAP earnings of $1.58 per share, a 4% decline year over year. It missed the Zacks Consensus Estimate of $1.60. Management had estimated non-GAAP EPS in the range of $1.24-$1.78.

Revenues totaled $600 million, a 7% decline year over year (8% at constant currency or cc). The top line also missed the consensus estimate by 2.9%. Management projected revenues in the $580-$640 million range. According to management, historical financials were not restated after the Kepware and ThingWorx divestiture, as the sale did not qualify as discontinued operations.

Consequently, fiscal 2026 includes their contribution only until March 13, 2026, the date of the divestiture, while fiscal 2025 reflects a full year, affecting year-over-year comparisons for revenue, EPS and cash flow. Quarterly revenue was below the guidance midpoint solely due to the shorter duration of a single large contract expansion, while deal durations across the broader business remained stable.

Nonetheless, its Intelligent Product Lifecycle vision integrates AI across its major product portfolio, including Computer-Aided Design (CAD), Product Lifecycle Management (PLM), Application Lifecycle Management (ALM) and Service Lifecycle Management (SLM). PTC aims to build an intelligence layer across these platforms, allowing organizations to leverage trusted engineering and operational data more effectively. This strategy positions the company well as manufacturers increasingly seek AI-driven automation, predictive analytics and digital engineering capabilities.

Top-Line DetailsRecurring revenues of $576 million dipped 6% year over year.

Perpetual licenses decreased 91% to $691,000.

Professional services revenues were $23.3 million, up 3.3% year over year.

Revenues by License, Support and ServicesLicense revenues were $205.8 million, down 18.2% from the year-ago quarter figure.

Support and cloud services revenues of $370.9 million edged up 0.3% year over year.

Revenues by Product GroupIn the fiscal third quarter, PLM revenues (59% of net sales) were $357 million, slipping 12% year over year.

CAD revenues (41%) were $243 million, up 1%.

ARR Model Continues to StrengthenAnnualized recurring revenues (ARR) were $2.4 billion, up 7% year over year. At cc, ARR was $2.5 billion, up 9.1%. PTC generated $60 million in net new ARR in the fiscal third quarter, led by solid demand across its go-to-market initiatives and encouraging early traction for its AI offerings. Backed by this momentum, PTC raised the midpoint of its full-year ARR growth guidance to 9.25%.

PTC raised and narrowed its full-year ARR guidance, with the midpoint implying $214 million in net new ARR, reflecting strong go-to-market execution and improved pipeline visibility. The company expects a significant acceleration in the fiscal fourth quarter, supported by healthy demand generation and the conversion of deferred ARR, with net new ARR (excluding Kepware and ThingWorx) projected at $79-$92 million.

In the fiscal third quarter, PLM and CAD ARR were $1,426 million and $986 million, rising 8% and 6% year over year, respectively.

Operating DetailsTotal operating expenses came in at $324 million, almost on par with the prior-year quarter.

Operating income on a non-GAAP basis was $248.5 million, down from $285.2 million in the prior-year quarter.

Operating margin on a non-GAAP basis crashed 290 bps year over year to 41%.

Balance Sheet & Cash FlowAs of June 30, 2026, cash and cash equivalents were $351.5 million compared with $439 million as of March 31, 2026.

Total debt, net of deferred issuance costs, was $1.4 billion as of June 30, 2026, compared with $1.2 billion as of March 31, 2026.

Cash provided by operating activities was $261 million compared with the prior-year quarter figure of $244 million. The free cash flow was $249 million compared with $242 million reported in the year-ago quarter.

PTC accelerated share repurchases in the fiscal third quarter, reflecting management's view that the stock was undervalued. After completing a $375 million accelerated share repurchase program and an additional $525 million of open-market buybacks, the company now expects to repurchase about $1.625 billion of shares in fiscal 2026. This is expected to reduce fully diluted shares outstanding from roughly 121 million to 116 million, supporting EPS growth and signaling confidence in PTC's long-term outlook.

PTC Elevates Fiscal 2026 OutlookFor the fourth quarter of fiscal 2026, PTC estimates revenues in the $630-$690 million band. Non-GAAP EPS is projected in the range of $1.63 to $2.21. Cash from operations is expected to be around $29 million. Free cash flow is forecasted to be roughly $15 million, with the year-over-year decline primarily reflecting capital gains tax outflows from the Kepware and ThingWorx sale.

Driven by an encouraging fiscal fourth quarter outlook, PTC lifted the midpoint of its fiscal 2026 revenue and non-GAAP EPS guidance to $2.69-$2.75 billion and $7.87-$8.42, respectively. The prior view was $2.58 billion to $2.82 billion and between $6.65 and $8.90 per share.

For fiscal 2026, PTC reiterated cash from operations projections to be around $880 million, indicating a rise of about 1% on a year-over-year basis. The free cash flow is still forecasted to be roughly $850 million, suggesting about a 1% fall.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 12.8% due to these changes.

VGM ScoresCurrently, PTC Inc. has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, PTC Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerPTC Inc. belongs to the Zacks Computer - Software industry. Another stock from the same industry, Cadence Design Systems (CDNS - Free Report) , has gained 4.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Cadence reported revenues of $1.58 billion in the last reported quarter, representing a year-over-year change of +24.2%. EPS of $2.11 for the same period compares with $1.65 a year ago.

For the current quarter, Cadence is expected to post earnings of $2.04 per share, indicating a change of +5.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

Cadence has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.