With a market cap of $15.8 billion, PTC Inc. (PTC) is a global software company that helps industrial and manufacturing organizations digitally transform the way they engineer, manufacture, and service physical products. It employs more than 7,000 people and serves over 30,000 customers worldwide.
Shares of the Boston, Massachusetts-based company have lagged behind the broader market over the past 52 weeks. PTC stock has decreased 28.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 19.5%. Moreover, shares of the company have fallen 14.7% on a YTD basis, compared to SPX's 12.6% gain.
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In addition, shares of the product development software maker have underperformed the State Street Technology Select Sector SPDR ETF's (XLK) 39.6% increase over the past 52 weeks.
www.barchart.com PTC shares rose 2.9% following its Q3 2026 results on Jul. 29. The company raised its fiscal 2026 constant-currency ARR growth outlook to 9% - 9.5%, supported by $60 million of net new ARR in Q3 and constant-currency ARR of $2.45 billion, up 9.1%. Investor confidence was also boosted by strong cash generation, with Q3 operating cash flow of $261 million and free cash flow of $249 million, alongside a major $525 million Q3 share repurchase that lifted full-year buyback guidance to approximately $1.63 billion.
PTC also raised fiscal 2026 guidance to $2.69 billion - $2.75 billion in revenue and $7.87 - $8.42 in adjusted EPS, while highlighting its largest-ever AI deal, a near seven-figure ServiceMax AI contract that demonstrated 50% lower technician preparation time and a 4% net productivity improvement.
For the fiscal year ending in September 2026, analysts expect PTC's EPS to decline 2.7% year-over-year to $6.51. The company's earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 20 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, one “Moderate Buy,” seven “Holds,” and one “Strong Sell.”
www.barchart.com This configuration has remained unchanged over the past three months.
On Jul. 31, Barclays analyst Saket Kalia maintained a “Buy” rating on PTC and a $155 price target.
The mean price target of $172.90 represents a 16.4% premium to PTC’s current price levels. The Street-high price target of $230 suggests a 54.8% potential upside.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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