PTC Inc. reported fourth‑quarter 2025 revenue of $893.8 million, a 43 % year‑over‑year increase that surpassed the consensus estimate of $743.7 million by $150 million, or roughly 20 %. GAAP earnings per share rose to $2.94, beating the $2.26 consensus by $0.68, a 30 % lift. The non‑GAAP EPS of $3.47, which analysts focus on, exceeded expectations by $1.21, a 53 % beat, underscoring the company’s strong operating performance.
Operating margin expanded to 49 % from 46 % in the same quarter last year, driven by a higher mix of high‑margin PLM and CAD contracts and disciplined cost management. Operating cash flow climbed to $104 million, up 6 % from Q4 2024, while free cash flow reached $100 million, a 7 % increase. The company projected operating cash flow growth of 16 % for FY 2025, reflecting confidence in continued cash‑generating momentum.
Comparing to prior periods, Q3 2025 GAAP EPS was $1.64 and revenue was $643.9 million, while Q4 2024 GAAP EPS was $1.04 and revenue was $626.6 million. The jump in Q4 earnings and revenue therefore represents a significant acceleration, not just a modest uptick, and highlights the impact of the divestiture of Kepware and ThingWorx, which removed lower‑margin legacy assets and sharpened the product mix.
Guidance for FY 2026 remains upbeat: constant‑currency ARR growth is expected to be 7‑9 %, and free cash flow is projected at approximately $1 billion, a notable increase from the $840‑$850 million range previously cited. The company also reiterated its focus on AI and SaaS initiatives, positioning the portfolio for higher‑margin growth and reinforcing the strategic narrative that the divestitures will free capital for innovation.
CEO Neil Barua said the quarter “capped a year of solid execution and focus,” noting that the divestiture of Kepware and ThingWorx will sharpen the portfolio around CAD, PLM, ALM, and SLM. CFO Kristian Talvitie highlighted that FY 2025 delivered 8.5 % ARR growth and 16 % cash‑flow growth, underscoring the effectiveness of the operating model and the company’s ability to invest in its Intelligent Product Lifecycle vision.
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