PTC earnings analysis
What we found in PTC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
PTC reported strong Q2 2026 results with revenue of $774 million and diluted EPS of $4.98, significantly exceeding expectations and marking a 22% increase in revenue year-over-year. The company's operating margin improved to 38.2% due to higher recurring revenue and effective operational management despite incurring divestiture-related charges. Full-year revenue guidance was raised slightly, reflecting confidence in continued growth from its subscription model.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Revenue grew 22% year-over-year to $774 million, surpassing estimates of $712.8 million.
- Robust EPS Increase
- Diluted EPS surged 270%, reaching $4.98 compared to $1.35 in Q2 2025.
- Improved Operating Margin
- Operating margin increased to 38.2%, up from 35.1% in the prior year.
- Significant Cash Flow Growth
- Operating cash flow rose 14% to $321 million compared to Q2 2025.
- Increased Full-Year Guidance
- Management anticipates full-year revenue between $2.580 billion and $2.820 billion.
- Strong ARR Growth
- Annual Recurring Revenue (ARR) grew 3% to $2.36 billion, or 11% excluding divested businesses.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Ongoing Macroeconomic Risks
- Management notes potential headwinds from inflation and geopolitical tensions affecting customer spending.
- Divestiture Impacts
- The divestiture of Kepware and ThingWorx could affect future ARR growth given they accounted for part of past revenues.
- Transition Services Agreement Uncertainty
- Performance under the Transition Services Agreement associated with divestiture could bring variability in expected funds.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $4.98
- Gross margin
- 85.2%
- Operating margin
- 38.2%
- Segment
- PLM
- Segment
- CAD
- Segment
- Support and Cloud Services
What they said about what is next.
Management raised full-year revenue guidance reflecting strong market demand and performance.
The filing reads better than the one before it.
What came before.
- 10-K · November 21, 2025
- PTC presents a strategy focused on the "Intelligent Product Lifecycle" and accelerating SaaS adoption (Windchill+, Creo+, Onshape, Arena, ServiceMax) with a high recurring revenue base. The company delivered a…
- 10-Q · February 6, 2025
- PTC reported revenue of $565.128 million for the quarter ended December 31, 2024, up $14.914 million (+2.7%) versus the prior-year quarter. Gross margin edged higher to 80.2% and diluted EPS increased to $0.68 (from…
- 10-Q · August 2, 2024
- PTC reported Q3 revenue of $518.639M and diluted EPS of $0.57. Revenue declined versus the prior-year quarter (Q3 FY2023 revenue $542.342M) while EPS and net income improved (net income $68.978M vs $61.398M). Operating…
- 10-Q · May 3, 2023
- PTC reported Q2 revenue of $542,181 (in thousands), up from $505,227 a year ago, driven by recurring revenue and the January acquisition of ServiceMax. Gross margin compressed to 79.1% and operating income fell to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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