PTC reported first fiscal quarter EPS of $1.92, a 75% year-over-year increase from $1.10, comfortably exceeding both company guidance and consensus estimates. Revenues rose 21% to $686 million, driven by strong large-deal momentum and competitive displacements. Operating cash flow grew 13% to $270 million and free cash flow increased 13% to $267 million, reflecting continued discipline in working capital management.

Annualized recurring revenue (ARR) reached $2.50 billion on a constant currency basis, up 8.4% year-over-year, or 9.0% when excluding the divested Kepware and ThingWorx businesses. PTC’s Intelligent Product Lifecycle strategy gained traction as customers embraced its AI-enabled portfolio, with notable contract wins in manufacturing and aerospace sectors. The go-to-market transformation accelerated conversion of strategic opportunities into signed deals, underpinning durable multi-year growth prospects.

In Q1 PTC repurchased $200 million of stock under its $2 billion authorization and expects to deploy approximately $1.115–$1.315 billion in buybacks over fiscal 2026, including net proceeds from recent divestitures. For the full fiscal year, the company reiterates guidance for constant currency ARR growth of 7%–9%, revenue between $2.675–$2.940 billion, and non-GAAP EPS of $6.69–$9.15. Second-quarter ARR is projected to grow 7.5%–8% in constant currency, with revenue of $710–$770 million and non-GAAP EPS of $1.93–$2.54.