PTC (PTC) Stock Forecast & Price Target

PTC reported impressive total revenue of $894 million, reflecting a 39% increase year-over-year on a constant currency basis and a 43% rise in reported terms. The company demonstrated resilience in a challenging manufacturing environment, achieving a 10% growth in European-based annual recurring revenue (ARR) and a 7% increase in the Americas during the September quarter. Anticipated growth in product lifecycle management (PLM) ARR by approximately 11% organically by FY26, driven by advancements in application lifecycle management (ALM) and successful cross-selling initiatives, underscores a positive outlook for PTC’s future financial performance.

The negative outlook on PTC's stock is primarily driven by a slight reduction in total revenue estimates for FY26, revised down by approximately 0.5% to $2,798 million, compared to the company's initial guidance range. Despite efforts to gain traction from the vertical go-to-market realignment, the company has faced stagnant year-over-year growth in net new ARR, which fell short of investor expectations for significant improvement. Additionally, concerns surrounding potential business disruptions linked to divestments, alongside ongoing macroeconomic challenges, have led to further downward adjustments in ARR projections and overall revenue forecasts for FY26 and FY27.