PTC reported first fiscal quarter results for the period ended December 31, 2025, with non-GAAP earnings per share of $1.92, representing a 75% increase year-over-year from $1.10. Revenue grew 21% to $686 million, driven by robust demand for subscription offerings and large-deal wins. Operating cash flow rose 13% to $270 million and free cash flow climbed 13% to $267 million, underscoring efficient working capital management and consistent collections in the quarter’s early months.

Annual recurring revenue (ARR) reached $2.494 billion on a reported basis, up 13% year-over-year; on a constant currency basis, ARR grew 8.4%, and 9.0% excluding the recently divested Kepware and ThingWorx units. For fiscal Q2’26, PTC projects constant currency ARR growth of 7.5% to 8.0% (excluding divested assets), and for full-year FY’26 anticipates 7% to 9% ARR expansion, reflecting continued momentum in SaaS and cloud deployments across its CAD, PLM and IoT portfolios.

PTC is executing on its $2 billion share repurchase authorization, completing $200 million of repurchases in Q1’26. Management expects to deploy net after-tax proceeds from the Kepware and ThingWorx divestiture (approximately $365 million) toward further buybacks, targeting total repurchases of $1.115 billion to $1.315 billion during FY’26. This disciplined capital return, combined with anticipated free cash flow of roughly $1 billion for the year, supports a meaningful reduction in fully diluted share count.

PTC is embedding artificial intelligence across its product suite and building a common AI infrastructure to enhance customer value. CEO Neil Barua emphasized that PTC’s Intelligent Product Lifecycle vision leverages product data as an enterprise-wide asset to power AI-driven transformation. The company’s go-to-market transformation has captured strategic displacements and large-deal volume, positioning PTC to deliver differentiated capabilities in smart manufacturing, digital twins and connected service applications.