Description

Is PTC’s 8.5% ARR Growth Strong Enough To Justify A Buy Before AI Monetizes?

PTC Inc. reported its second quarter results for fiscal 2026 reflecting growth and strategic focus following recent divestitures. Constant currency annual recurring revenue (ARR), excluding Kepware and ThingWorx, increased by 8.5% year-over-year, reaching $2.388 billion, which was at the high end of guidance. Free cash flow grew by 14% year-over-year, also exceeding expectations, supported by disciplined execution and operational improvements. The company reported repurchasing $250 million of common stock in Q2 and plans additional repurchases, including an accelerated share repurchase program funded by divestiture proceeds, aiming to reduce share count from approximately 120 million to 115-116 million by Q3 2026. A new $2 billion share repurchase authorization was announced for fiscal years 2027 and 2028. PTC’s refined focus on its intelligent product lifecycle vision is bolstered by increased product release cadence and go-to-market transformation, including vertical-focused strategies that have improved sales representative productivity and renewal rates.