PTC’s second quarter results reflected a mixed performance as the company missed revenue expectations but delivered slightly higher-than-expected non-GAAP earnings. Management pointed to sustained customer interest in its Intelligent Product Lifecycle solutions and highlighted that AI-driven capabilities are becoming increasingly important for clients seeking to streamline engineering and service workflows. CEO Neil Barua emphasized that recent go-to-market transformation efforts have resulted in improved customer engagement and that new contract wins, particularly in verticals such as defense and industrial automation, supported recurring revenue growth.
Is now the time to buy PTC? Find out in our full research report (it’s free for active Edge members).
PTC (PTC) Q2 CY2026 Highlights:
- Revenue: $600 million vs analyst estimates of $608 million (6.8% year-on-year decline, 1.3% miss)
- Adjusted EPS: $1.58 vs analyst estimates of $1.56 (1% beat)
- Adjusted Operating Income: $248.5 million vs analyst estimates of $251.7 million (41.4% margin, 1.3% miss)
- Revenue Guidance for Q3 CY2026 is $660 million at the midpoint, above analyst estimates of $651.6 million
- Management raised its full-year Adjusted EPS guidance to $8.15 at the midpoint, a 4.8% increase
- Operating Margin: 27.7%, down from 32.6% in the same quarter last year
- Annual Recurring Revenue: $2.41 billion vs analyst estimates of $2.46 billion (flat year on year, miss)
- Billings: $544 million at quarter end, down 8.2% year on year
- Market Capitalization: $15.37 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From PTC’s Q2 Earnings Call
-
Joseph Vruwink (Baird): Asked about the impact of open-source AI models and new data strategies on PTC’s competitive positioning. CEO Neil Barua responded that PTC’s strength lies in its data and process-level integration, which is difficult for new entrants to replicate in regulated, complex industries.
-
Matthew Hedberg (RBC Capital Markets): Inquired about the path to low double-digit ARR growth in the future. CFO Jennifer DiRico explained that accelerating growth will require sustained performance in net new ARR and conversion of deferred ARR, with current pipeline trends supporting this outlook.
-
Daniel Jester (BMO Capital Markets): Sought feedback from customers on new product launches. Barua reported strong enthusiasm for AI-powered products and noted that customers are increasingly looking to modernize their product data foundations to leverage PTC’s new offerings.
-
Jason Celino (KeyBanc Capital Markets): Asked about the impact of AI on engineering headcount and efficiency. Barua pointed to Onshape’s rapid growth in API usage as evidence that AI is driving both efficiency and increased adoption of PTC’s platforms.
-
Blair Abernethy (Rosenblatt Securities): Questioned the monetization strategy for new AI features. Barua stated that while AI is a medium- to long-term revenue opportunity, initial adoption is driving greater use of PTC’s core systems and expanding its footprint within customer organizations.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will be watching (1) the pace of adoption and monetization for PTC’s AI-enabled products, (2) the conversion rate of deferred ARR into recognized revenue, and (3) ongoing progress in winning competitive displacements—particularly in regulated sectors. Additional focus will be on the success of cloud-native offerings and the impact of any further go-to-market improvements on sales productivity.
PTC currently trades at $140.27, up from $132.46 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
High-Quality Stocks for All Market Conditions
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.