Citigroup

Citigroup Maintains Neutral on PTC, PT Down to $166 from $181

PTC shares surge 5.72% after-hours as Q1 earnings and revenue exceed estimates, driven by strong deal momentum and strategic divestitures.

RBC Capital Maintains Outperform on PTC, PT Down to $195 from $235

Rosenblatt Keeps Buy Rating on PTC, Lowers PT to $200 from $220

PTC Q1 FY26: ARR up 8.4%, operating and free cash flow growth at 13% YoY.

Catalyst<ul> <li>Most analysts rate PTC Buy or Strong Buy, showing broad institutional optimism.</li> <li>The company maintains strong cash reserves relative to market value.</li></ul>Risk<ul> <li>Fund flows show overall negative trends with large and extra-large orders showing outflows.</li> <li>Technical indicators show that the market is in a volatile state, and the direction is not clear enough.</li> <li>Analyst ratings show differences, with at least one firm maintaining a Sell rating, signaling valuation concerns.</li></ul>

Key Factors

PTC reported Q1 FY26 results with non-GAAP EPS of $1.92 and revenue of $686 million, both exceeding estimates. PTC raised guidance for ARR growth and operating free cash flow, with constant currency ARR up 8.4% year-over-year. PTC's stock surged 5.72% in after-hours trading following the Q1 earnings report driven by strong deal momentum and strategic divestitures. PTC announced a $2 billion share repurchase authorization, with $200 million repurchased in Q1 and $1.1–1.3 billion targeted for FY26.

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