PTC Inc. Reports 22% Revenue Growth to $774.3 Million in Latest Quarter

PTC Inc. reported significant financial growth in its latest quarterly results, with total revenue reaching $774.3 million for the three months ended March 31, 2026, a 22% increase from $636.4 million in the same period last year. The company's software revenue, which includes license and support services, rose to $750.3 million, up 24% year-over-year. This growth was primarily driven by a 43% increase in license revenue, which totaled $362.7 million, and a 10% rise in support and cloud services revenue, amounting to $387.6 million. The company also reported a net income of $590.7 million, a substantial increase from $162.6 million in the prior year, resulting in diluted earnings per share of $4.98, compared to $1.35 a year earlier.

In comparison to the previous fiscal period, PTC's financial performance showed marked improvement, particularly in operating income, which increased by 32% to $295.8 million. The gross margin also improved, reaching 85% for the quarter, up from 83% in the same period last year. The company attributed these results to a combination of higher revenue and operational discipline, despite incurring $27 million in charges related to the divestiture of its Kepware and ThingWorx businesses, which was completed on March 13, 2026.

Strategically, PTC's divestiture of the Kepware and ThingWorx businesses for $530.8 million has allowed the company to streamline its operations and focus on its core software offerings. The divestiture resulted in a gain of $462.6 million, which significantly contributed to the company's other income for the quarter. Additionally, PTC has continued to invest in its subscription model, with approximately 95% of its revenue being recurring in nature, which enhances customer engagement and provides predictable cash flows.

Operationally, PTC reported a total customer count exceeding 30,000, with a workforce of over 7,000 employees. The company’s Annual Run Rate (ARR) grew by 3% to $2.36 billion, with a notable 11% growth when excluding the divested businesses. The company also experienced a 14% increase in cash provided by operating activities, totaling $590.7 million for the first six months of fiscal 2026. PTC's international revenue showed strong performance, particularly in the Americas and Europe, contributing to the overall revenue growth.

Looking ahead, PTC remains optimistic about its growth trajectory, emphasizing the importance of its subscription model and ongoing investments in software solutions, including artificial intelligence capabilities. The company expects to leverage its strong cash position and operational efficiencies to continue driving growth and enhancing shareholder value through share repurchases and strategic investments.