PTC Inc. Q3 Earnings Exceed Expectations, Barclays Raises PT to $233

PTC Inc. (PTC) reported Q3 results, exceeding EPS expectations and achieving 9.3% constant currency growth in ARR. The company released Creo 12 and Arena Supply Chain Intelligence, finalized deals with med-tech, automotive, and aerospace companies, and raised the low end of free cash flow guidance to $850 million. Barclays lifted its price target from $203 to $233 and maintained an 'Overweight' rating.

PTC Inc. (NASDAQ: PTC) reported robust third-quarter (Q3) results, exceeding earnings per share (EPS) expectations and achieving 9.3% constant currency growth in annual recurring revenue (ARR). The company's EPS of $1.64 surpassed analyst estimates, while ARR reached $2.37 billion, driven by a 9.3% constant currency growth rate [1].

PTC Inc. also reported strong free cash flow of $242 million, marking a 14% year-over-year (YoY) increase. The company attributed its performance to progress in its go-to-market transformation, steady pipeline creation, and enhanced collaboration across teams [1].

Significant product releases and strategic partnerships further bolstered PTC Inc.'s performance. The company launched Creo 12, featuring AI-driven generative design, and Arena Supply Chain Intelligence for AI-enabled risk monitoring. Additionally, PTC Inc. finalized deals with med-tech, automotive, and aerospace companies, and made progress within its "physical AI" collaboration with NVIDIA [1].

Barclays lifted its price target on PTC Inc. from $203 to $233, maintaining an 'Overweight' rating. The analyst firm noted the company's strong performance and the potential for continued growth in the industrial software sector [1].

Looking ahead, PTC Inc. expects full-year ARR growth of 8%-9% and raised the low end of its free cash flow guidance to approximately $850 million [1].

References:

[1] https://ca.finance.yahoo.com/news/ptc-inc-ptc-reports-results-035334274.html