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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.

Actual											0.59	0.62	0.78	0.97	1.08	0.83	1.1	0.95	1.39	0.97	1.27	0.99	1.16	0.99	1.2	1.11	1.46	0.98	1.54	1.1	1.79	1.64	3.47	1.92
Forecast											0.4409	0.4438	0.5682	0.6563	0.7247	0.6331	0.6581	1.0485	1.1244	1.0477	1.1521	1.0277	1.1285	0.9958	1.1386	0.9649	1.2267	0.9668	1.4496	0.8891	1.3949	1.2081	2.2726	1.5613
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+33.82%	+39.70%	+37.28%	+47.80%	+49.03%	+31.10%	+67.15%	-9.39%	+23.62%	-7.42%	+10.23%	-3.67%	+2.79%	-0.58%	+5.39%	+15.04%	+19.02%	+1.37%	+6.24%	+23.72%	+28.32%	+35.75%	+52.69%	+22.97%

PTC

PTC fundamentals

PTC Q1 2026 Earnings

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PTC

PTC fundamentals

PTC Q1 2026 Earnings

Earnings Call

PTC Earnings Call Summary for Q1/20265:00 PM on Feb 4, 2026

PTC Earnings Call Summary for Q4/20255:00 PM on Nov 5, 2025

PTC Earnings Call Summary for Q3/20255:00 PM on Jul 30, 2025

PTC Earnings Call Summary for Q2/20255:00 PM on Apr 30, 2025

PTC Earnings Call Summary for Q1/20255:00 PM on Feb 5, 2025

You can ask Aime