PTC Beats Q2 Estimates, Stock Jumps 7% After Hours

Industrial software company PTC Inc. jumped more than 7% in after-hours trading Wednesday, Benzinga reported, after the company posted fiscal second-quarter results that cleared Wall Street expectations by a wide margin on both revenue and profit.

PTC Earnings Beat Lands Hard

PTC’s second-quarter revenue came in at $774.3 million. That figure exceeded analyst forecasts by roughly 8.6%. Earnings per share of $2.69 topped estimates by nearly 34%. Revenue on a constant-currency basis rose 15% year over year. Constant-currency annual recurring revenue, which strips out foreign exchange noise from subscription metrics, grew 8.5% when adjusted for divested businesses.

Cash generation was equally strong. Operating cash flow rose 14% to $321 million, while free cash flow matched that pace at $318 million. Non-GAAP operating margin expanded by 600 basis points, reaching 53%.

Capital Return Program Takes Center Stage

Chief Financial Officer Jen DiRico told investors the company deployed $625 million on share repurchases during the quarter alone. Full-year buyback guidance now targets between $1.2 billion and $1.3 billion. PTC also announced a new $2 billion repurchase authorization running through September 2028, signaling strong confidence in sustained free cash flow generation.

AI Demand Drives the Bullish Narrative

CEO Neil Barua pointed to accelerating enterprise AI adoption as a key demand driver. He said customers are rebuilding and modernizing their product data infrastructure on PTC’s platforms before rolling out AI tools across operations. That positions PTC’s systems-of-record software as essential groundwork for the broader AI buildout inside industrial enterprises.

Where PTC Stood Before the Print

Heading into the print, PTC’s stock had struggled over the prior twelve months. Shares were down nearly 14% year over year, sitting roughly 7% above their 52-week low of $130.89. The stock carried a Relative Strength Index reading below 42, reflecting weak near-term momentum. Wednesday’s regular session close was $136.76, up a modest 0.57% before results hit the tape.

For the third quarter, PTC guided revenue to a range of $580 million to $640 million, with non-GAAP EPS between $1.24 and $1.78. Full fiscal year 2026 guidance placed revenue in a range of $2.58 billion to $2.82 billion, with non-GAAP EPS projected between $6.65 and $8.90.

The after-hours move lifted PTC toward $147, though the stock remains well below its 52-week high of $219.69.

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