PTC Reports Q4 and Full Fiscal Year 2026 Earnings Results

Executive Summary

On November 4, 2026, PTC Inc. filed a Form 8-K under Item 2.02 (Results of Operations and Financial Condition), furnishing its financial results for the fourth quarter and fiscal year ended September 30, 2026 via Exhibit 99.1.

Key Financial Highlights

Fourth Fiscal Quarter 2026

• Annual Recurring Revenue (ARR): $2,508 million excluding divested businesses, up 8% YoY as reported and up 9.7% on a constant currency basis (FY'26 Plan FX rates). As reported ARR grew 1% YoY including divestitures.
• Revenue: $673 million, down 25% year-over-year (down 24% constant currency), reflecting timing and contract impacts under ASC 606.
• Operating Margins:
  • GAAP operating margin was 32% (down 1,690 bps from 49% in Q4'25).
  • Non-GAAP operating margin was 46% (down 1,320 bps from 59% in Q4'25).
• Earnings Per Share (EPS):
  • GAAP EPS was $1.44, down 50% from $2.88 in Q4'25.
  • Non-GAAP EPS was $2.03, down 40% from $3.41 in Q4'25.
• Cash Flow:
  • Operating cash flow was $47 million, down 55% YoY.
  • Free cash flow was $38 million, down 63% YoY.
  • Cash flow metrics in Q4'26 were substantially affected by non-recurring items: ~$24 million of divestiture-related costs, ~$75 million in divestiture-related cash taxes, and ~$5 million in non-recurring capex for R&D relocation.

Full Fiscal Year 2026

• Revenue: $2,733 million, essentially flat compared to $2,739 million in FY'25.
• Operating Margins:
  • GAAP operating margin reached 33% compared to 36% in FY'25.
  • Non-GAAP operating margin was 47% compared to 48% in FY'25.
• Earnings Per Share (EPS):
  • GAAP EPS rose 47% to $8.93 from $6.08 in FY'25, boosted by portfolio divestitures (Kepware and ThingWorx divested in Q2'26).
• Cash Flow:
  • Operating cash flow grew 4% to $899 million.
  • Free cash flow increased 2% to $873 million.

Strategic Takeaways

PTC continues to transition its portfolio around its Intelligent Product Lifecycle strategy following the Q2'26 divestitures of Kepware and ThingWorx. While quarterly ASC 606 revenue recognition caused volatility in reported quarterly revenue and margins, underlying ARR excluding divestitures showed solid high single-digit growth (+9.7% CC), and full-year free cash flow expanded to $873 million.