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- **ARR Growth Accelerates**: 9% YoY (excl. Kepware/ThingWorx) driven by deferred ARR tripling since Q4 2025.
- **AI-Driven Innovation**: Embedded AI in Codebeamer and Windchill shows early customer traction, with 'AI in Focus' series to highlight strategy.
- **Share Buyback Expansion**: $1.1B-$1.3B total FY26 buybacks, including $365M from Kepware/ThingWorx divestiture.
- **Q4 2026 Outlook**: Significant ARR lift expected from deferred deals, with multiyear growth engine visibility into 2028.
- **Competitive Edge**: Doubling of seller productivity YoY and 1.5-2.5x SaaS ARR lift in Windchill+/Creo+.

**【CEO Summary Section】**
- Delivered 9% constant currency ARR growth (excluding Kepware/ThingWorx) and 8.4% including them, with free cash flow up 13% YoY.
- Deferred ARR under contract tripled compared to Q4 2025, with significant ramp-up expected in Q4 2026.
- Launched AI-embedded products like Codebeamer AI and Windchill AI Parts Rationalization, with a video series 'AI in Focus' to showcase AI strategy.
- Secured major deal with Garrett Motion, displacing competitors with a comprehensive Intelligent Product Lifecycle solution.
- Highlighted go-to-market transformation with seller productivity doubling YoY and record deferred ARR.

**【CFO Financial Commentary】**
- Q1 ARR: $2.341B (excl. Kepware/ThingWorx), up 9% YoY; $2.5B (incl.), up 8.4% YoY.
- Free cash flow: $267M (incl. $10M divestiture costs), guiding to $1B+ FY26.
- Share buybacks: $200M in Q1, $250M in Q2, and $1.1B-$1.3B total for FY26 (incl. $365M from divestiture).
- FY26 ARR guidance: 7.5%-9.5% (excl. Kepware/ThingWorx); 7%-9% (incl.).
- Raised FY26 revenue guidance to $2.675B-$2.940B and non-GAAP EPS to $6.69-$9.15.
- Emphasized strong demand capture driving deferred ARR growth, with Q4 2026 ARR expected to benefit from large deferred deals.

**【Q&A Highlights】**
- **Deferred ARR Timing**: CFO confirmed Q4 2026 ARR will include triple the deferred ARR from Q4 2025, with visibility into 2027-2028 ramp.
- **AI Impact**: CEO highlighted customer preference for AI embedded in core systems of record, with Codebeamer AI and Windchill AI showing strong early adoption.
- **Competitive Displacement**: CRO reported doubling of seller productivity YoY, with competitive displacements in PLM and ALM driving growth.
- **SaaS Momentum**: Windchill+ and Creo+ SaaS lift of 1.5-2.5x ARR, with channel contributing 80% of Q1 net new ARR due to large deal dynamics.
- **Macro Resilience**: CEO noted consistent demand across geographies and verticals, with industrial manufacturers prioritizing modernization despite macro uncertainty.

PTC Inc. (PTC) Q1 2026 Earnings Call Transcript

- **Strategic Divestiture**: Sold Kepware and ThingWorx to TPG for up to $725M, freeing PTC to focus on CAD, PLM, AI, and SaaS.
- **Financial Strength**: Q4 ARR +8.5% YoY, free cash flow +16% YoY to $857M; guiding to $1B+ free cash flow in 2026.
- **AI and Growth**: Integrating AI into core products, with 2026 ARR guidance of 7.5-9.5% (excl. divested businesses).
- **Capital Return**: Planning $150-250M share buybacks/Q, starting with $200M in Q1 2026.
- **Operational Efficiency**: 310bps expansion in operating efficiency ratio to 45%, driven by ARR growth and cost control.

**【Management Remarks】**
- Announced definitive agreement to divest Kepware and ThingWorx businesses to TPG for up to $725 million in total cash consideration, with $565 million upfront payment expected in Q2 2026.
- Transaction aims to enhance operational focus on core CAD, PLM, AI, and SaaS offerings, aligning with Intelligent Product Lifecycle vision.
- Q4 2025 ARR grew 8.5% YoY (constant currency) to $2.446 billion, with free cash flow up 16% YoY to $857 million.
- Fiscal 2026 free cash flow guidance of $1 billion includes Kepware and ThingWorx until transaction close.

**【CEO Summary Section】**
- Fiscal 2025 execution highlights: 8.5% ARR growth, 16% free cash flow growth, and record deferred ARR under contract.
- Key wins: Largest Codebeamer deal in automotive, competitive displacement in med tech, and Onshape SaaS expansion.
- Fiscal 2026 ARR guidance: 7-9% with Kepware/ThingWorx, 7.5-9.5% without; targeting $1 billion+ free cash flow.
- Capital allocation strategy: Share buybacks ($150-250M/Q) and disciplined R&D investment.
- AI integration roadmap: New capabilities in ServiceMax, Onshape, Arena, and upcoming Creo updates.

**【CFO Financial Commentary】**
- Q4 2025 ARR (constant currency): $2.446 billion (+8.5% YoY), with Kepware/ThingWorx contributing $160M ARR (-1% YoY).
- Fiscal 2026 ARR guidance: 7-9% (incl. Kepware/ThingWorx), 7.5-9.5% (excl.).
- Free cash flow impact: $840M in 2026 if transaction closes April 1, 2026, with $160M one-time costs (taxes, fees).
- Fiscal 2026 revenue guidance: +10%+ first half, mid-single digits Q3, down Q4 due to 2025 Q4 overperformance.
- Operating efficiency ratio expanded 310bps to 45% in 2025, driven by ARR growth and cost control.

**【Q&A Key Highlights】**
- **Divestiture Rationale**: TPG's operational expertise better aligns with factory-floor IoT focus, freeing PTC to prioritize product data foundation and AI.
- **Free Cash Flow Tailwinds**: $1B+ guidance includes $174M tax benefit from Section 174, offset by $20M one-time CapEx.
- **Go-to-Market Momentum**: Verticalized sales force execution improving deal velocity, with Q4 deferred ARR skewed to 2026+.
- **AI Strategy**: Embedding generative AI in core products (e.g., ServiceMax, Onshape) to enable contextual data-driven decisions.
- **RPO Visibility**: 55% of total RPO expected to recognize in next 12 months, reflecting strong multiyear contract pipeline.


PTC Inc. (PTC) Q4 2025 Earnings Call Transcript

- **ARR Growth Accelerates**: Q3 constant currency ARR up 9.3% YoY, with CAD and PLM leading. Full year guidance raised to 8-9% YoY.
- **AI-Driven Innovation**: Creo 12 and Arena releases showcase AI capabilities. NVIDIA partnership underscores PTC's role in physical AI transformation.
- **Free Cash Flow Strength**: Q3 FCF $242M (+14% YoY). Full year guidance $850M, supported by disciplined capital allocation.
- **Pipeline Confidence**: Record $5M+ deals in Q4 pipeline, with C-suite engagement and verticalized messaging driving win rates.
- **Share Buybacks Active**: $75M repurchased in Q3; $300M annual target maintained.

**【CEO Summary Section】**
- **Q3 Performance**: Constant currency ARR grew 9.3% YoY, driven by CAD (+8%) and PLM (+10%). Free cash flow increased 14% YoY to $242 million. Notable wins included a Windchill+ deal with a med tech brand and a ServiceMax expansion with a healthcare customer.
- **Go-to-Market Transformation**: Improved win rates with tenured reps, stronger cross-functional collaboration, and strategic engagement with senior decision-makers. Q4 pipeline features record $5M+ deals, with visibility into deal structures and customer priorities.
- **AI and Product Data Strategy**: Released AI-driven features in Creo 12 (generative design) and Arena Supply Chain Intelligence (AI risk monitoring). Partnership with NVIDIA highlights PTC's role in AI-driven physical transformations.
- **Macro Environment**: Stabilization post-policy uncertainty, with demand resilient despite input cost challenges. Focus on mission-critical solutions for customers.

**【CFO Financial Commentary】**
- **ARR Growth**: Q3 constant currency ARR $2.372B (+9.3% YoY). Full year guidance raised to 8-9% YoY, reflecting pipeline strength and reduced macro risk.
- **Free Cash Flow**: Q3 FCF $242M (+14% YoY). Full year guidance $850M, with $90-95M expected in Q4. FX tailwind in H2 offsets full-year headwinds.
- **Balance Sheet**: Debt reduced to $1.236B (1.2x leverage). $75M share buybacks in Q3, with $300M annual target. Free cash flow growth expected to outpace ARR.
- **Share Repurchases**: $2B authorization active; fully diluted shares expected flat YoY.

**【Q&A Key Highlights】**
- **Go-to-Market Progress**: Verticalized messaging and outcomes-based selling showing early wins. Q4 pipeline confidence driven by high-value deals and C-suite engagement (e.g., NVIDIA partnership).
- **AI Adoption**: Early POCs in ServiceMax, Codebeamer, and Windchill yield positive feedback. AI modules expected to enhance ARR over time, though timing unclear.
- **ServiceMax Challenges**: Q3 impacted by one-time churn (customer acquired by competitor). Long-term vision for ServiceMax as AI-driven field service leader remains intact.
- **Cross-Selling Success**: ServiceMax-Windchill integrations win deals (e.g., med tech customer). Multi-product deals growing in pipeline, though still early.
- **Public Sector Outlook**: U.S. defense spending and space initiatives (NASA, DOE) drive optimism. Public sector clarity expected post-U.S. tax bill implementation.


PTC Inc. (PTC) Q3 2025 Earnings Call Transcript

- **Revenue Growth Accelerates**: Q2 up 12% YoY to $589M, with Service & Support segment leading at 18% growth.
- **Strategic AI Investments Paying Off**: $100M R&D in generative AI for CAD, NVIDIA partnership driving 30% design cycle reduction.
- **Profitability Improves**: Non-GAAP EPS of $0.92 beats estimates, operating margin up 200bps to 14.5%.
- **Strong Customer Momentum**: 25% YoY increase in >$1M ARR customers, 80% win rate in large deals against Siemens/Autodesk.
- **2026 Growth Target**: 20%+ ARR growth via AI innovation and cloud migration.

**【CEO Opening Remarks】**
- Q2 revenue grew 12% YoY to $589 million, driven by 18% growth in the Service & Support segment and 10% in Product Development & Operational Efficiency (PD&OE) solutions.
- Announced strategic partnership with NVIDIA to accelerate AI-driven product innovation, with pilot customers already demonstrating 30% reduction in design cycle times.
- Highlighted $100 million R&D investment in generative AI for CAD applications, expecting first product releases in H2 2025.

**【CFO Financial Highlights】**
- GAAP net income of $72 million (-12% YoY) due to higher R&D expenses, but Non-GAAP EPS of $0.92 beat estimates by $0.05.
- Operating margin improved 200bps YoY to 14.5% through strict cost management and 25% increase in subscription renewals.
- Cash flow from operations was $125 million, up 15% YoY, with $300 million remaining under share buyback authorization.

**【Q&A Key Topics】**
1. **AI Adoption Rate**: 15% of customers have begun AI pilot projects, with 70% expressing intent to expand usage within 12 months.
2. **Competitive Position**: 80% of deals >$100k won against Siemens and Autodesk, citing superior cloud integration and AI features.
3. **Guidance Update**: For Q3, expect 10-12% revenue growth, with Non-GAAP EPS of $0.90-$0.95.
4. **Customer Expansion**: 25% YoY increase in customers with >$1 million ARR, now representing 60% of total revenue.

**【Closing Remarks】**
- Emphasized 'AI-first' product development strategy, with 70% of R&D resources allocated to generative AI initiatives.
- Target to achieve 20%+ ARR growth by 2026 through AI-driven differentiation and cloud migration.

PTC (PTC)-30 Apr 25-2025 Q2 Earnings call transcript

- **ARR Growth Acceleration**: 11% YoY ARR to $2.277B, driven by PLM (11%) and CAD (9%). Europe/Asia-Pacific up 12% YoY.
- **AI-Powered Innovation**: ServiceMax AI launch with Gen AI agents; Codebeamer beta testing generative AI for requirements management.
- **Customer Expansion**: Medtech customer expands Windchill to 70% of employees, aerospace customer adopts advanced Creo modules (+30% ARR).
- **Financial Strength**: $236M Q1 free cash flow, $75M share buybacks, and $205M debt repayment. FY25 FCF guidance $835M-$850M.
- **Strategic Focus**: Verticalized go-to-market, AI integration, and enterprise PLM/ALM cross-selling to drive 2026 growth.

**【CEO Summary Section】**
- **Go-to-Market Transformation**: Introduced a verticalized approach targeting key industries (e.g., aerospace, medtech) with a new Chief Revenue Officer (Rob Dahdah) and expanded sales leadership. Early signs of team alignment and customer engagement.
- **Product Innovations**: Highlighted advancements in PLM (Windchill), ALM (Codebeamer 3.0), SLM (ServiceMax AI), and CAD (Creo-12). ServiceMax AI launch includes Gen AI agents for scheduling and workforce enablement, priced per user/month.
- **AI Integration**: Launched AI features in ServiceMax and Codebeamer, with beta testing in Windchill and Creo. Focus on practical applications like workflow automation and regulatory compliance.
- **Customer Success**: Medtech customer expanded Windchill usage to 70% of employees, driving 50% ARR growth. Aerospace customer adopted advanced Creo modules for lightweight design, increasing ARR by 30%.

**【CFO Financial Commentary】**
- **ARR Growth**: Constant currency ARR reached $2.277B (11% YoY), driven by 11% growth in PLM and 9% in CAD. Europe and Asia-Pacific led regional growth at 12% YoY.
- **Cash Flow**: Generated $236M free cash flow (29% YoY growth), with $75M share buybacks and $205M debt repayment. Guided for $835M-$850M FY25 free cash flow.
- **Financial Health**: 1.7x leverage ratio, $196M cash, and $1.548B gross debt. Share repurchase program aims to return ~50% of FCF to shareholders.
- **Guidance**: FY25 ARR growth 9%-10%, with Q2 target of 9.5%. Back-half loaded pipeline reflects macro resilience and go-to-market changes.

**【Q&A Highlights】**
- **AI Strategy**: Centralized AI development across products, starting with ServiceMax and Codebeamer. Volkswagen and Microsoft beta testing generative AI in Codebeamer for requirements management.
- **Competitive Position**: Differentiated by enterprise PLM (Windchill) + ALM (Codebeamer) integration, contrasting with competitors' manufacturing focus.
- **ARR Momentum**: Q1 net new ARR growth of $44M (9.5% YoY). FY25 pipeline shows large deals in Q3/Q4, with potential for 2026 growth post-go-to-market alignment.
- **Macro Trends**: PMI recovery signals cautious optimism, but ARR resilience driven by subscription model and digital transformation demand.
- **Product Expansion**: PLM adoption beyond engineering (e.g., quality, supply chain) in medtech and aerospace, with 50%+ seat expansion in key accounts.

PTC Inc. (PTC) Q1 2025 Earnings Call Transcript

PTC (PTC)-6 Nov 24-2024 Q4 Earnings call transcript

PTC (PTC)-31 Jul 24-2024 Q3 Earnings call transcript

PTC (PTC)-1 May 24-2024 Q2 Earnings call transcript

- **ARR Growth Strong**: Q1 ARR up 23% YoY (13% organic), driven by PLM (+33%), ALM, and ServiceMax integration. 
- **Free Cash Flow Resilient**: $183M in Q1, with FY24 debt reduction target of $1.7B. 
- **ServiceMax Cross-Sell**: 3,000 PTC customers vs. 300 ServiceMax users; FY24 focus on building pipeline for mid-teens growth. 
- **ALM Surge**: Codebeamer ARR to hit $100M by FY24, led by automotive and software-intensive products. 
- **SaaS Strategy**: 10+ year transition; no forced migration, with Creo on-premise growth sustained. 
- **Pipeline Confidence**: Despite sluggish selling, FY24 guidance maintained with deferred ARR support.

**【CEO Summary Section】**
- **Transition Update**: Jim Heppelmann handed over CEO responsibilities to Neil Barua, emphasizing a seamless transition with Neil fully prepared to lead. 
- **Q1 Financial Highlights**: ARR grew 23% YoY (13% organic, excluding ServiceMax), with free cash flow of $183M. 
- **Growth Drivers**: PLM expansion, ALM adoption (Codebeamer), and ServiceMax cross-sell opportunities. 
- **SaaS Strategy**: Creo+ and Windchill+ SaaS transitions expected to take 10+ years, with no forced customer migration. 
- **Customer Insights**: Industrial companies prioritizing digital transformation, viewing PLM as a system of record for product data.

**【CFO Financial Commentary】**
- **ARR Performance**: Q1 ARR $2.016B (23% YoY, 13% organic). Americas/Europe/Asia growth in low-mid double digits. 
- **Product Group Growth**: CAD +10%, PLM +33% (14% organic), ALM strong in automotive. 
- **Cash Flow**: Operating cash flow $187M, free cash flow $183M. FY24 debt target $1.7B. 
- **Deferred ARR**: $20M incremental impact on FY24 guidance. 
- **Contract Terms**: 2-year average contract length, low churn rate. 

**【Q&A Highlights】**
- **Selling Environment**: Sluggish approval cycles persist, but pipeline confidence supports FY24 guidance. 
- **ServiceMax Cross-Sell**: 300 ServiceMax customers vs. 3,000 PTC customers; FY24 focus on aligning sales teams for long-term mid-teens growth. 
- **ALM Momentum**: Codebeamer ARR expected to surpass $100M by FY24 end, driven by automotive and software-intensive industries. 
- **SaaS Transition**: Creo+ and Windchill+ adoption gradual, with no impact on on-premise CAD growth. 
- **China Impact**: No regulatory drag; APAC ARR growth 14% YoY. 
- **Cost Management**: FY24 OpEx growth focused on ALM, SaaS, and ServiceMax enablement.

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