Upside case
Bull case
$221+61.5%
PTC would need investors to value it at roughly 29x earnings — about 11x more generous than today's 18x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
PTC Inc. (PTC) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
33
analysts
20 bullish · 3 bearish · 33 covering PTC
Strong Buy
0
Buy
20
Hold
10
Sell
3
Strong Sell
0
Consensus Target
$195
+42.4% vs today
Scenario Range
$4 – $221
Model bear to bull value window
Coverage
33
Published analyst ratings
Valuation Context
17.8x
Forward P/E · Market cap $16.3B
PTC price targets
Three scenarios for where PTC stock could go
Current
~$137
Confidence
65 / 100
Updated
May 1, 2026
Where we are now
Current · $137
Bear
$4
Base
$193
Bull
$221
Market caseClosest to today
Base case
$193+40.8%
At 25x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$4-97.4%
If investor confidence fades or macro conditions deteriorate, a 17x multiple contraction could push PTC down roughly 97% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
PTC Inc.
PTC · NASDAQTechnologySoftware - ApplicationSeptember year-end
PTC is a software company that provides product lifecycle management (PLM), computer-aided design (CAD), and industrial Internet of Things (IoT) solutions. It generates revenue primarily through software subscriptions—roughly 85% of total—with the remainder coming from professional services and perpetual licenses. The company's moat lies in its integrated platform approach that connects CAD, PLM, and IoT capabilities, creating switching costs for manufacturers who rely on its tools throughout the entire product development lifecycle.
Market Cap
$16.3B
Revenue TTM
$3.0B
Net Income TTM
$1.2B
Net Margin
41.6%
PTC Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
92%Exceptional
12 quarters tracked
Revenue Beat Rate
75%Exceptional
vs consensus estimates
Avg EPS Surprise
+17.7%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 4 of 4Q2 2025
EPS
$1.79/$1.39
Revenue
$636M/$607M
Q3 2025
EPS
$1.64/$1.21
Revenue
$644M/$583M
Q4 2025
EPS
$3.47/$2.27
Revenue
$894M/$751M
Q1 2026
EPS
$1.92/$1.59
Revenue
$686M/$639M
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $1.79/$1.39 | +28.8% | $636M/$607M | +4.9% |
| Q3 2025 | $1.64/$1.21 | +35.5% | $644M/$583M | +10.4% |
| Q4 2025 | $3.47/$2.27 | +52.9% | $894M/$751M | +19.0% |
| Q1 2026 | $1.92/$1.59 | +20.8% | $686M/$639M | +7.3% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$3.1B
+7.9% YoY
FY2
$3.6B
+15.1% YoY
EPS Outlook
FY1
$7.66
-100.0% YoY
FY2
$8.56
+11.8% YoY
Trailing FCF (TTM)$928M
FCF Margin: 31.0%
Next Earnings
May 6, 2026
Expected EPS
$2.06
Expected Revenue
$712M
PTC beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
PTC Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $2.7B
Product Mix
Latest annual revenue by segment or product family
Support And Cloud Services
53.6%
+8.1% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
Americas
48.5%
+22.0% YoY
Tap, hover, or focus a slice to inspect segment detail.
Support And Cloud Services is the largest disclosed segment at 53.6% of FY 2025 revenue, up 8.1% YoY.
Americas is the largest reported region at 48.5%, up 22.0% YoY.
PTC Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $321 — implies +135.0% from today's price.
Upside to Fair Value
135.0%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
PTC
22.5x
vs
S&P 500
25.2x
11% discount
vs Technology Trailing P/E
PTC
22.5x
vs
Technology
27.5x
18% discount
vs PTC 5Y Avg P/E
Today
22.5x
vs
5Y Average
45.9x
51% discount
Forward PE
17.8x
S&P 500
19.1x
-7%
Technology
21.7x
-18%
5Y Avg
—
—
Trailing PE
22.5x
S&P 500
25.2x
-11%
Technology
27.5x
-18%
5Y Avg
45.9x
-51%
PEG Ratio
0.56x
S&P 500
1.75x
-68%
Technology
1.47x
-62%
5Y Avg
—
—
EV/EBITDA
15.6x
S&P 500
15.3x
+2%
Technology
17.4x
-10%
5Y Avg
28.2x
-45%
Price/FCF
19.0x
S&P 500
21.3x
-11%
Technology
19.8x
-4%
5Y Avg
31.8x
-40%
Price/Sales
5.9x
S&P 500
3.1x
+90%
Technology
2.4x
+146%
5Y Avg
8.1x
-27%
Dividend Yield
—
S&P 500
1.88%
—
Technology
1.18%
—
5Y Avg
—
—
| Metric | PTC | S&P 500 | Technology | 5Y Avg PTC |
|---|---|---|---|---|
| Forward PE | 17.8x | 19.1x | 21.7x-18% | — |
| Trailing PE | 22.5x | 25.2x-11% | 27.5x-18% | 45.9x-51% |
| PEG Ratio | 0.56x | 1.75x-68% | 1.47x-62% | — |
| EV/EBITDA | 15.6x | 15.3x | 17.4x-10% | 28.2x-45% |
| Price/FCF | 19.0x | 21.3x-11% | 19.8x | 31.8x-40% |
| Price/Sales | 5.9x | 3.1x+90% | 2.4x+146% | 8.1x-27% |
| Dividend Yield | — | 1.88% | 1.18% | — |
PTC trades above S&P 500 benchmarks on 1 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolPTC Financial Health
Verdict
Strong
PTC generates $928M in free cash flow at a 31.0% margin — 14.9% ROIC signals a durable competitive advantage · returns 1.8% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$3.0B
Revenue Growth
TTM vs prior year
+27.7%
Gross Margin
Gross profit as a share of revenue
84.7%
Operating Margin
Operating income divided by revenue
38.7%
Net Margin
Net income divided by revenue
41.6%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$196277.48
Free Cash Flow (TTM)
Cash generation after capex
$928M
FCF Margin
FCF as share of revenue — the primary cash quality signal
31.0%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
14.9%
ROA
Return on assets, trailing twelve months
19.3%
Cash & Equivalents
Liquid assets on the balance sheet
$184M
Net Debt
Total debt minus cash
$1.2B
Debt Serviceability
Net debt as a multiple of annual free cash flow
1.3× FCF
~1.3 years to full repayment at current FCF run-rate
ROE *
Return on equity, trailing twelve months
44.6%
* Elevated by buyback-compressed equity — compare ROIC (14.9%) for an undistorted picture of capital efficiency.
Shareholder Returns
How capital is returned to owners
Total shareholder yield
1.8%
Dividend
—
Buyback
1.8%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$300M
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Declining as buybacks retire shares
119M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt). ROE marked * where buyback-compressed equity base may inflate the figure.
Open full ratios pagePTC Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Stock Price Volatility
PTC's stock price has experienced significant fluctuations, making it challenging for investors to resell shares at favorable times. The volatility is influenced by factors unrelated to the company's performance, typical for software companies.
High Risk
Indebtedness
As of November 2025, PTC carries a substantial debt load of approximately $1.27 billion. This level of indebtedness could limit operational flexibility and increase vulnerability to adverse economic conditions.
High Risk
Economic Uncertainties
Global economic uncertainties, geopolitical tensions, and trade disputes can significantly affect customer purchasing behavior. These macroeconomic factors pose risks to PTC's growth trajectory.
Medium
Meeting Market Expectations
If PTC's operating results fall short of market or analyst expectations, it could lead to a decline in stock price. This risk is particularly pertinent in the competitive software industry.
Medium
Cybersecurity Threats
PTC's reliance on cloud services and third-party partners exposes it to cybersecurity risks. A significant breach could have severe financial and reputational repercussions.
Medium
SaaS Transformation Risks
The transition to a Software-as-a-Service (SaaS) model requires substantial investment and carries risks related to infrastructure development and customer adoption. Failure to execute this transition effectively could hinder growth.
Lower
Global Compliance Risks
Operating in multiple countries with varying laws increases compliance risks for PTC. Non-compliance could result in fines and sanctions, impacting financial performance.
Lower
Dependence on Partners
PTC relies on an ecosystem of partners for technology and services. Disruptions in these relationships could negatively impact product development and sales.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why PTC Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Strong Market Position in Software
PTC is a leader in industrial software, especially in Computer-Aided Design (CAD) and Product Lifecycle Management (PLM). The company benefits from a strong brand reputation and a loyal customer base, with flagship products like Creo and Windchill recognized for their quality.
Shift to SaaS Driving Growth
PTC is strategically transitioning towards Software-as-a-Service (SaaS) solutions, which is expected to significantly expand its recurring revenue streams. This shift is complemented by strategic acquisitions like ServiceMax and Arena Solutions, enhancing its product capabilities.
Robust Financial Performance
In Q3 2024, PTC reported a 10% year-over-year increase in Annual Recurring Revenue (ARR) to $2.126 billion, alongside a 29% rise in free cash flow. The company anticipates constant currency ARR growth between 11% and 12% for fiscal year 2024.
Focus on Future Technologies
PTC is investing in future-oriented technologies such as Artificial Intelligence (AI), Industrial Internet of Things (IIoT), and Augmented Reality (AR). This focus is expected to drive customer adoption and enhance its competitive position in the market.
Commitment to Share Repurchases
Management has committed to substantial share repurchases, indicating confidence in the stock's undervaluation and aiming to accelerate earnings per share (EPS) growth. This strategy reflects a strong belief in the company's long-term value.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
PTC Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$136.84
52W Range Position
7%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$130.94
+4.5% from the low
52-Week High
$219.69
-37.7% from the high
1 Month
-5.21%
3 Month
-12.12%
YTD
-19.6%
1 Year
-13.8%
3Y CAGR
+1.8%
5Y CAGR
+1.0%
10Y CAGR
+14.4%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
PTC vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
17.8x
vs 34.9x median
-49% below peer median
Revenue Growth
+7.9%
vs +15.0% median
-47% below peer median
Net Margin
41.6%
vs 16.6% median
+151% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
PTC PTC PTC Inc. | $16.3B | 17.8x | +7.9% | 41.6% | Buy | +42.4% |
CDN CDNS Cadence Design Systems, Inc. | $98.0B | 44.7x | +15.0% | 20.9% | Buy | +4.5% |
SNP SNPS Synopsys, Inc. | $96.6B | 34.9x | +17.7% | 13.8% | Buy | +7.8% |
ADS ADSK Autodesk, Inc. | $52.0B | 19.6x | +16.9% | 16.6% | Buy | +39.0% |
ROP ROP Roper Technologies, Inc. | $36.1B | 16.0x | +9.7% | 21.1% | Buy | +30.7% |
ROK ROK Rockwell Automation, Inc. | $51.6B | 37.8x | +1.5% | 12.4% | Hold | -5.0% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
PTC Dividend and Capital Return
PTC returns 1.8% annually — null% through dividends and 1.8% through buybacks.
Dividend UnknownFCF Unknown
Total Shareholder Yield
1.8%
Dividend + buyback return per year
Buyback Yield
1.8%
Dividend Yield
—
Payout Ratio
—
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$0.00
Growth Streak
Consecutive years of dividend increases
0Y
3Y Div CAGR
—
5Y Div CAGR
—
Ex-Dividend Date
—
Payment Cadence
—
0 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$300M
Estimated Shares Retired
2M
Approx. Share Reduction
1.8%
Shares Outstanding
Current diluted share count from the screening snapshot
119M
At 1.8%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
FAQ
7 questionsPTC Investor Questions
Common questions answered from live analyst data and company financials.
01Is PTC Inc. (PTC) stock a buy or sell in 2026?
PTC Inc. (PTC) is rated Buy by Wall Street analysts as of 2026. Of 33 analysts covering the stock, 20 rate it Buy or Strong Buy, 10 rate it Hold, and 3 rate it Sell or Strong Sell. The consensus 12-month price target is $195, implying +42.4% from the current price of $137. The bear case scenario is $4 and the bull case is $221.
02What is the PTC stock price target for 2026?
The Wall Street consensus price target for PTC is $195 based on 33 analyst estimates. The high-end target is $210 (+53.5% from today), and the low-end target is $180 (+31.5%). The base case model target is $193.
03Is PTC Inc. (PTC) stock overvalued in 2026?
PTC trades at 17.8x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for PTC Inc. (PTC) stock in 2026?
The primary risks for PTC in 2026 are: (1) Stock Price Volatility — PTC's stock price has experienced significant fluctuations, making it challenging for investors to resell shares at favorable times. (2) Indebtedness — As of November 2025, PTC carries a substantial debt load of approximately $1. (3) Economic Uncertainties — Global economic uncertainties, geopolitical tensions, and trade disputes can significantly affect customer purchasing behavior. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is PTC Inc.'s revenue and earnings forecast?
Analyst consensus estimates PTC will report consensus revenue of $3.1B (+7.9% year-over-year) and EPS of $7.66 (-100.0% year-over-year) for the upcoming fiscal year. The following year, analysts project $3.6B in revenue.
06When does PTC Inc. (PTC) report its next earnings?
PTC Inc. is expected to report its next earnings on approximately 2026-05-06. Consensus expects EPS of $2.06 and revenue of $712M. Over recent quarters, PTC has beaten EPS estimates 92% of the time.
07How much free cash flow does PTC Inc. generate?
PTC Inc. (PTC) generated $928M in free cash flow over the trailing twelve months — a free cash flow margin of 31.0%. PTC returns capital to shareholders through and share repurchases ($300M TTM).