Operating margins have expanded significantly to 38.2% in 2026Q2, up from 21.6% in 2024Q1, reflecting the successful scaling of the firm's subscription-based software model.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Sales/Revenue | 3B | 2.74B | 2.3B | 2.1B | 1.93B | 1.81B | 1.46B | 1.26B | 1.24B | 1.16B | 1.14B | 1.26B | 1.36B | 1.29B | 1.26B | 1.17B | 1.01B | 938.18M | 1.07B | 941.28M | 854.92M | 720.72M | 660.03M | 671.94M | 741.96M | 934.61M | 928.41M | 1.06B | 1.02B | 808.8M | 600.1M |
| Revenue Growth % | 27.75% | 19.18% | 9.6% | 8.47% | 6.98% | 23.91% | 16.15% | 1.11% | 6.68% | 2.06% | -9.14% | -7.5% | 4.9% | 3.02% | 7.6% | 15.53% | 7.66% | -12.35% | 13.71% | 10.1% | 18.62% | 9.2% | -1.77% | -9.44% | -20.61% | 0.67% | -12.21% | 3.89% | 25.87% | 34.78% | 52.19% |
| Cost of Goods Sold | 470.3M | 444.98M | 444.82M | 441.01M | 385.98M | 371.1M | 334.27M | 325.38M | 326.19M | 329.02M | 325.67M | 334.73M | 373.68M | 373.04M | 372.13M | 356.77M | 307.69M | 309.76M | 330.79M | 290.81M | 269.63M | 208.24M | 182.18M | 218.49M | 216.96M | 252.57M | 204.65M | 168.3M | 127M | 54.1M | 39.7M |
| COGS % of Revenue | - | 16.24% | 19.35% | 21.03% | 19.96% | 20.54% | 22.92% | 25.91% | 26.27% | 28.27% | 28.55% | 26.67% | 27.54% | 28.84% | 29.64% | 30.57% | 30.46% | 33.02% | 30.9% | 30.9% | 31.54% | 28.89% | 27.6% | 32.52% | 29.24% | 27.02% | 22.04% | 15.91% | 12.48% | 6.69% | 6.62% |
| Gross Profit | 2.53B | 2.29B | 1.85B | 1.66B | 1.55B | 1.44B | 1.12B | 930.25M | 915.63M | 835.02M | 814.87M | 920.51M | 983.28M | 920.5M | 883.55M | 810.18M | 702.35M | 628.43M | 739.54M | 650.47M | 585.28M | 512.48M | 477.85M | 453.45M | 525M | 682.03M | 723.77M | 889.3M | 891M | 754.7M | 560.4M |
| Gross Margin % | 84.31% | 83.76% | 80.65% | 78.97% | 80.04% | 79.46% | 77.08% | 74.09% | 73.73% | 71.73% | 71.45% | 73.33% | 72.46% | 71.16% | 70.36% | 69.43% | 69.54% | 66.98% | 69.09% | 69.1% | 68.46% | 71.11% | 72.4% | 67.48% | 70.76% | 72.98% | 77.96% | 84.09% | 87.52% | 93.31% | 93.38% |
| Gross Profit Growth % | - | 23.77% | 11.93% | 7.02% | 7.75% | 27.75% | 20.84% | 1.6% | 9.65% | 2.47% | -11.48% | -6.38% | 6.82% | 4.18% | 9.06% | 15.35% | 11.76% | -15.03% | 13.69% | 11.14% | 14.21% | 7.25% | 5.38% | -13.63% | -23.02% | -5.77% | -18.61% | -0.19% | 18.06% | 34.67% | 52.49% |
| Operating Expenses | 1.37B | 1.31B | 1.27B | 1.2B | 1.1B | 1.06B | 913.28M | 816.1M | 838.63M | 786.18M | 775.61M | 820.94M | 758.3M | 740.98M | 730.53M | 693.07M | 627.58M | 586.16M | 592.31M | 541.81M | 505.51M | 427.27M | 397.5M | 502.18M | 572.34M | 685.04M | 710.46M | 657.2M | 577.2M | 428.1M | 323.8M |
| OpEx % of Revenue | - | 47.89% | 55.06% | 57.11% | 56.9% | 58.4% | 62.62% | 65% | 67.53% | 67.54% | 68% | 65.4% | 55.88% | 57.28% | 58.18% | 59.39% | 62.13% | 62.48% | 55.34% | 57.56% | 59.13% | 59.28% | 60.23% | 74.74% | 77.14% | 73.3% | 76.52% | 62.14% | 56.7% | 52.93% | 53.96% |
| Selling, General & Admin | 845.33M | 792.57M | 791.33M | 763.64M | 689.98M | 723.78M | 595.28M | 545.37M | 557.5M | 518.01M | 513.08M | 557.3M | 499.68M | 492.58M | 495.26M | 463.34M | 410.41M | 382.04M | 394.71M | 371.99M | 352.1M | 307.36M | 284.32M | 367.9M | 400.5M | 455.58M | 487.93M | 470.8M | 453.9M | 352.5M | 267.5M |
| SG&A % of Revenue | - | 28.93% | 34.43% | 36.41% | 35.69% | 40.05% | 40.82% | 43.43% | 44.89% | 44.5% | 44.99% | 44.4% | 36.82% | 38.08% | 39.44% | 39.71% | 40.63% | 40.72% | 36.88% | 39.52% | 41.19% | 42.65% | 43.08% | 54.75% | 53.98% | 48.75% | 52.55% | 44.52% | 44.59% | 43.58% | 44.58% |
| Research & Development | 475.27M | 457.69M | 433.05M | 394.37M | 338.82M | 299.92M | 256.57M | 246.89M | 249.77M | 236.06M | 229.33M | 227.51M | 226.5M | 221.92M | 214.96M | 211.41M | 201.57M | 188.5M | 182.02M | 162.35M | 147.34M | 118.27M | 107.99M | 128.43M | 136.07M | 148.94M | 143.76M | 124.1M | 93.4M | 53.2M | 39.5M |
| R&D % of Revenue | - | 16.71% | 18.84% | 18.81% | 17.53% | 16.6% | 17.59% | 19.66% | 20.11% | 20.28% | 20.11% | 18.13% | 16.69% | 17.16% | 17.12% | 18.12% | 19.96% | 20.09% | 17.01% | 17.25% | 17.23% | 16.41% | 16.36% | 19.11% | 18.34% | 15.94% | 15.48% | 11.73% | 9.17% | 6.58% | 6.58% |
| Other Operating Expenses | 3M | 61.59M | 41.22M | 39.56M | 71.2M | 31.61M | 61.43M | 23.84M | 255K | -42.3M | -30.18M | -15.09M | -10.46M | -1.09M | 20.3M | 18.32M | 15.61M | 15.62M | 15.58M | 7.47M | 6.07M | 1.64M | 5.2M | 5.86M | 35.76M | 80.51M | 78.77M | 62.3M | 29.9M | 22.4M | 16.8M |
| Operating Income | 1.16B | 982.38M | 588.06M | 458.47M | 447.36M | 380.75M | 210.86M | 117.66M | 73.24M | 40.9M | -37.01M | 56.16M | 196.58M | 127.32M | 128.1M | 117.11M | 74.78M | 19.3M | 125.25M | 92.77M | 71.73M | 85.79M | 37.42M | -79.63M | -78.49M | -3M | 13.31M | 232.1M | 313.8M | 326.6M | 236.6M |
| Operating Margin % | 38.71% | 35.86% | 25.58% | 21.86% | 23.14% | 21.07% | 14.46% | 9.37% | 5.9% | 3.51% | -3.25% | 4.47% | 14.49% | 9.84% | 10.2% | 10.04% | 7.4% | 2.06% | 11.7% | 9.86% | 8.39% | 11.9% | 5.67% | -11.85% | -10.58% | -0.32% | 1.43% | 21.95% | 30.83% | 40.38% | 39.43% |
| Operating Income Growth % | - | 67.05% | 28.27% | 2.48% | 17.5% | 80.57% | 79.21% | 60.66% | 79.07% | 210.49% | -165.91% | -71.43% | 54.39% | -0.6% | 9.38% | 56.62% | 287.54% | -84.59% | 35.01% | 29.34% | -16.39% | 129.28% | 146.99% | -1.45% | -2514.46% | -122.56% | -94.27% | -26.04% | -3.92% | 38.04% | 59.76% |
| EBITDA | 1.3B | 1.12B | 729.47M | 595.64M | 569.4M | 503.28M | 330.37M | 195.49M | 160.65M | 127.64M | 49.54M | 140.59M | 273.88M | 203.88M | 194.57M | 179.51M | 136.96M | 80.91M | 185.27M | 131.97M | 105.61M | 111.67M | 72.57M | -37.99M | -5.86M | 73.37M | 92.08M | 294.4M | 343.7M | 349M | 253.4M |
| EBITDA Margin % | 43.23% | 40.81% | 31.74% | 28.4% | 29.45% | 27.85% | 22.65% | 15.57% | 12.94% | 10.97% | 4.34% | 11.2% | 20.18% | 15.76% | 15.5% | 15.38% | 13.56% | 8.62% | 17.31% | 14.02% | 12.35% | 15.49% | 11% | -5.65% | -0.79% | 7.85% | 9.92% | 27.84% | 33.76% | 43.15% | 42.23% |
| EBITDA Growth % | 68.75% | 53.23% | 22.47% | 4.61% | 13.14% | 52.34% | 69% | 21.69% | 25.86% | 157.65% | -64.76% | -48.67% | 34.34% | 4.78% | 8.39% | 31.07% | 69.28% | -56.33% | 40.39% | 24.95% | -5.42% | 53.87% | 291.04% | -548.15% | -107.99% | -20.32% | -68.72% | -14.34% | -1.52% | 37.73% | 60.79% |
| D&A (Non-Cash Add-back) | 135.71M | 135.42M | 141.41M | 137.16M | 122.04M | 122.53M | 119.5M | 77.82M | 87.41M | 86.74M | 86.55M | 84.43M | 77.31M | 76.55M | 66.47M | 62.39M | 62.18M | 61.61M | 60.02M | 39.2M | 33.89M | 25.88M | 35.16M | 41.64M | 72.63M | 76.37M | 78.77M | 62.3M | 29.9M | 22.4M | 16.8M |
| EBIT | 1.16B | 997.2M | 588.62M | 461.98M | 451.37M | 442.23M | 211.13M | 63.35M | 70.33M | 40.99M | -37.31M | 41.27M | 194.27M | 133.21M | 125.48M | 107.86M | 83.66M | 20.37M | 126.71M | 108.66M | 74.56M | 72.47M | 80.35M | -48.73M | -47.34M | 36.8M | -1.23M | 232.1M | 313.8M | 293.5M | 335.5M |
| Net Interest Income | -35.37M | -73.62M | -115.25M | -124.02M | -51.77M | -48.68M | -72.63M | -38.95M | -37.87M | -39.2M | -26.45M | -11.04M | -5.04M | -4.11M | -1.83M | 534K | 1.48M | 1.36M | 2.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 3.4M | 4.4M | 5.4M | 2.5M | 1.8M | 3.8M | 4.1M | 3.8M | 3.25M | 3.44M | 3.7M | 3.12M | 2.86M | 2.92M | 3.84M | 3.01M | 4.56M | 10.06M | 9.87M | 5.44M | 6.88M | 3.48M | 3.26M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 35.37M | 77.02M | 119.65M | 129.42M | 54.27M | 50.48M | 76.43M | 43.05M | 41.67M | 42.4M | 29.88M | 14.74M | 8.15M | 6.98M | 4.75M | 3.31M | 1.53M | 3.2M | 7.82M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 411.22M | -62.21M | -119.1M | -125.91M | -50.26M | 11.01M | -76.16M | -42.74M | -43.96M | -43.17M | -30.18M | -15.09M | -10.46M | -1.09M | -7.36M | -12.57M | 7.36M | -2.12M | -6.36M | 6.89M | 3.7M | 5.53M | -377K | -2.8M | 4.15M | -5.09M | -32.91M | -50.9M | -109.8M | 10.6M | -95M |
| Pretax Income | 1.57B | 920.18M | 468.96M | 332.57M | 397.1M | 391.75M | 134.71M | 20.3M | 28.66M | -1.41M | -67.19M | 41.06M | 186.11M | 126.23M | 120.74M | 104.55M | 82.14M | 17.17M | 118.89M | 99.66M | 75.42M | 91.31M | 37.04M | -82.43M | -74.34M | -10.86M | -5.07M | 181.2M | 204M | 337.2M | 216.1M |
| Pretax Margin % | 52.42% | 33.59% | 20.4% | 15.86% | 20.54% | 21.68% | 9.24% | 1.62% | 2.31% | -0.12% | -5.89% | 3.27% | 13.72% | 9.76% | 9.62% | 8.96% | 8.13% | 1.83% | 11.11% | 10.59% | 8.82% | 12.67% | 5.61% | -12.27% | -10.02% | -1.16% | -0.55% | 17.13% | 20.04% | 41.69% | 36.01% |
| Income Tax | 325.19M | 186.18M | 92.63M | 87.03M | 84.02M | -85.17M | 4.01M | 47.76M | -23.33M | -7.64M | -12.73M | -21.03M | 25.92M | -17.54M | 156.13M | 19.12M | 57.77M | -14.35M | 39.18M | -44M | 14.56M | 7.72M | 2.23M | 15.85M | 19.28M | -2.65M | -1.09M | 61.9M | 98.3M | 118M | 78.2M |
| Effective Tax Rate % | 20.69% | 20.23% | 19.75% | 26.17% | 21.16% | -21.74% | 2.98% | 235.27% | -81.42% | 543.74% | 18.94% | -51.22% | 13.93% | -13.89% | 129.32% | 18.29% | 70.33% | -83.58% | 32.96% | -44.15% | 19.3% | 8.45% | 6.01% | -19.23% | -25.94% | 24.37% | 21.45% | 34.16% | 48.19% | 34.99% | 36.19% |
| Net Income | 1.25B | 734M | 376.33M | 245.54M | 313.08M | 476.92M | 130.69M | -27.46M | 51.99M | 6.24M | -54.47M | 62.1M | 160.19M | 143.77M | -35.4M | 85.42M | 24.37M | 31.52M | 79.7M | 143.66M | 60.87M | 83.59M | 34.81M | -98.28M | -93.62M | -8.21M | -3.98M | 119.3M | 86.7M | 219.2M | 137.9M |
| Net Margin % | 41.58% | 26.8% | 16.37% | 11.71% | 16.19% | 26.39% | 8.96% | -2.19% | 4.19% | 0.54% | -4.78% | 4.95% | 11.81% | 11.11% | -2.82% | 7.32% | 2.41% | 3.36% | 7.45% | 15.26% | 7.12% | 11.6% | 5.27% | -14.63% | -12.62% | -0.88% | -0.43% | 11.28% | 8.52% | 27.1% | 22.98% |
| Net Income Growth % | 183.02% | 95.04% | 53.27% | -21.57% | -34.35% | 264.91% | 575.95% | -152.82% | 733.26% | 111.46% | -187.71% | -61.24% | 11.42% | 506.15% | -141.44% | 250.56% | -22.7% | -60.45% | -44.52% | 136.02% | -27.19% | 140.12% | 135.42% | -4.98% | -1039.77% | -106.38% | -103.34% | 37.6% | -60.45% | 58.96% | 78.17% |
| Net Income (Continuing) | 1.25B | 734M | 376.33M | 245.54M | 313.08M | 476.92M | 130.69M | -27.46M | 51.99M | 6.24M | -54.47M | 47.56M | 160.19M | 143.77M | -35.4M | 85.42M | 24.37M | 31.52M | 79.7M | 143.66M | 56.8M | 83.59M | 34.81M | -98.28M | -93.62M | -10.14M | -14.61M | 119.3M | 105.7M | 87.7M | 159.6M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 10.51 | 6.08 | 3.12 | 2.06 | 2.65 | 4.03 | 1.12 | -0.23 | 0.44 | 0.05 | -0.48 | 0.54 | 1.34 | 1.19 | -0.30 | 0.71 | 0.20 | 0.27 | 0.68 | 1.22 | 0.54 | 0.75 | 0.29 | -0.92 | -0.90 | -0.08 | -0.03 | 1.08 | 0.77 | 2.00 | 1.23 |
| EPS Growth % | 188.19% | 94.87% | 51.46% | -22.26% | -34.24% | 259.82% | 586.96% | -152.27% | 727.07% | 111.08% | -188.89% | -59.7% | 12.61% | 496.67% | -142.25% | 255% | -25.93% | -60.29% | -44.26% | 125.93% | -28% | 158.62% | 131.52% | -2.22% | -1011.11% | -137.54% | -103.16% | 40.26% | -61.5% | 62.6% | 64% |
| EPS (Basic) | - | 6.12 | 3.14 | 2.07 | 2.67 | 4.08 | 1.13 | -0.23 | 0.45 | 0.05 | -0.48 | 0.54 | 1.34 | 1.19 | -0.30 | 0.73 | 0.21 | 0.27 | 0.70 | 1.27 | 0.55 | 0.77 | 0.29 | -0.92 | -0.90 | -0.08 | -0.03 | 1.10 | 0.80 | 2.06 | 1.30 |
| Diluted Shares Outstanding | 118.55M | 120.78M | 120.74M | 119.33M | 118.23M | 118.37M | 116.27M | 117.72M | 118.16M | 117.36M | 114.61M | 116.01M | 119.98M | 121.24M | 118.7M | 120.97M | 119.92M | 117.36M | 117.87M | 117.49M | 113.38M | 111.98M | 120.04M | 106.25M | 104.02M | 101.38M | 116.84M | 110.98M | 111.87M | 109.63M | 112M |
| Basic Shares Outstanding | 118.19M | 120M | 119.68M | 118.34M | 117.19M | 116.84M | 115.66M | 117.72M | 116.39M | 115.52M | 113.47M | 115.99M | 119.55M | 120.81M | 118.7M | 117.58M | 115.64M | 114.95M | 113.7M | 112.73M | 109.85M | 108.54M | 120.04M | 106.25M | 104.02M | 101.38M | 116.84M | 108.45M | 108.38M | 106.3M | 106.4M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Cyclical Industrial CAPEX Exposure
According to recent financial disclosures, PTC achieved a 21.7% year-over-year revenue growth in 2026Q2, signaling that the company's transition to a subscription-based model is successfully capturing recurring demand despite broader macroeconomic volatility in the industrial sector that has historically pressured top-line performance for engineering software providers.
The acceleration in revenue growth suggests that the company's 'digital thread' strategy is effectively deepening penetration within its existing customer base. Investors should monitor whether this growth trajectory remains durable as the company laps the initial phases of its SaaS-focused product cycle.
As reported in quarterly filings, PTC's gross margin reached 83.8% in 2026Q2, reflecting a consistent upward trend from the 78.4% level observed in 2024Q3, which underscores the inherent scalability of the firm's proprietary software codebase as it shifts toward cloud-hosted delivery models.
This margin profile appears to validate the company's pricing power within the PLM market, where high switching costs provide a defensive moat. The ability to maintain such elevated margins while scaling suggests that the incremental costs of supporting new SaaS customers are being managed with significant operational discipline.
Based on the latest income statement data, PTC's operating margin expanded to 38.2% in 2026Q2, up from 21.6% in 2024Q1, indicating that the company is successfully decoupling revenue growth from proportional increases in operating expenses as the subscription transition reaches a more mature, profitable phase.
The data suggests that management has successfully optimized its SG&A and R&D spend relative to the top line, allowing for greater flow-through to operating income. This trend warrants further investigation to determine if such efficiency gains are sustainable or if they reflect temporary cost-containment measures.
As indicated by the 2026Q2 net income of $590.7M compared to $166.5M in the prior quarter, PTC's bottom-line results appear subject to significant non-operating volatility, necessitating a focus on adjusted metrics to strip away the impact of accounting timing and one-time items inherent in software reporting.
The substantial fluctuation in net income suggests that GAAP figures may not accurately reflect the underlying cash-generating capability of the core business. Investors should prioritize evaluating free cash flow and ARR to better understand the true economic performance of the firm's software engine.
Quick answers to the most common questions about buying PTC stock.
For fiscal year 2025, PTC Inc. (PTC) reported total revenue of $2.74B. This represents a 356.5% increase compared to $600.1M in 1996.
PTC Inc. (PTC) is profitable, generating $734.0M in net income for the fiscal year ending 2025 with a net profit margin of 26.8%.
PTC Inc. (PTC) reported an operating income of $982.4M, resulting in an operating profit margin of 35.9%. This margin reflects the operational efficiency of the business before interest and taxes.
PTC Inc. (PTC) generated $2.29B in gross profit for the year, representing a gross profit margin of 83.8%. This demonstrates the company's core pricing power and production efficiency.