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Research Alert: Ptc Lifts Fy 26 Eps Guidance, Helped By Share Repurchases And Margin Expansion

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

PTC delivered Q2 FY 26 (Mar-Q) results well above the Street, with sales of $774M (+22% Y/Y) vs. the $713M expected and non-GAAP EPS of $2.69 (vs. $2.11), reflecting 50% Y/Y growth, led by 600 bps of Y/Y non-GAAP operating margin expansion to 53%. Constant currency annual recurring revenue (ARR) growth of 8.5% to $2.39B landed at the top of PTC's guidance range but decelerated from Q1's 9.0%, while operating cash flow surged 14% to $321M (vs. 13% growth in Q1). Management maintained its FY 26 ARR growth guidance at 7.5%-9.5% and kept FCF expectations at $850M, but raised its non-GAAP EPS midpoint to $7.78 from $7.60. We see support from accelerated share repurchase activity, including $625M in Q2 and $1.275B planned in FY 26, reflecting strong cash generation and a commitment to shareholder returns while maintaining a conservative debt-to-EBITDA ratio (0.8x exiting Q2). The completion of the Kepware and ThingWorx divestitures in March should allow PTC to sharpen its focus on core CAD, PLM, and ALM solutions.

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