PTC Announces Fourth fiscal Quarter and Full Fiscal YEar 2026 Results
PTC INC. (PTC) filed an SEC Form 8-K — Results of Operations and Financial Condition. Ex 99.1 PTC Announces Fourth fiscal Quarter and Full Fiscal YEar 2026 Results Strategic focus on Intelligent Product Lifecycle vision BOSTON, MA, November 4, 2026 - PTC (NASDAQ: PTC) today reported financial results for its fourth fiscal quarter and full fiscal year ended Septemb
How this was made
The 30-second read
Why it matters
The earnings release and acquisition news provide fresh data on PTC's financial health and strategic direction, influencing investor sentiment.
Market read
The announcement may trigger a sell‑off in PTC and affect related software stocks, while the acquisition could have broader industry implications.
What to watch
Divestiture of Kepware and ThingWorx may improve future margins; cash flow impact is one‑time.
PTC Announces Fourth fiscal Quarter and Full Fiscal YEar 2026 Results Strategic focus on Intelligent Product Lifecycle vision
Q4 revenue, operating margin, EPS, operating cash flow and free cash flow declined year over year, while FY26 operating cash flow, free cash flow and non-GAAP EPS increased. ARR excluding divested businesses grew, but PTC suspended guidance following its definitive agreement to be acquired by Schneider Electric.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q4'26 ARR excluding divested businessesother | $2.51M | – | 8% |
| Q4'26 constant currency ARR excluding divested businesses (FY'26 Plan FX rates)other | $2.54M | – | 9.7% |
| Q4'26 revenueGAAP | $673M | – | (25%) |
| Q4'26 revenue constant currency changeGAAP | $673M | – | declined 24% year over year on a constant currency basis |
| Q4'26 recurring revenueGAAP | $645.2M | – | – |
| Q4'26 perpetual license revenueGAAP | $3.88M | – | – |
| Q4'26 cost of revenueGAAP | $115.9M | – | – |
| Q4'26 gross profitGAAP | $557.4M | – | – |
| Q4'26 non-GAAP gross profitnon-GAAP | $571.2M | – | – |
| Q4'26 operating incomeGAAP | $212.6M | – | – |
| Q4'26 non-GAAP operating incomenon-GAAP | $307.3M | – | – |
| Q4'26 operating marginGAAP | 32% | – | (1,690 bps) |
| Q4'26 non-GAAP operating marginnon-GAAP | 46% | – | (1,320 bps) |
| Q4'26 net incomeGAAP | $157.3M | – | – |
| Q4'26 non-GAAP net incomenon-GAAP | $222.2M | – | – |
| Q4'26 diluted earnings per shareGAAP | $1.44 | – | (50%) |
| Q4'26 non-GAAP diluted earnings per sharenon-GAAP | $2.03 | – | (40%) |
| Q4'26 operating cash flowGAAP | $47M | – | (55%) |
| Q4'26 free cash flownon-GAAP | $38M | – | (63%) |
| FY'26 revenueGAAP | $2.73B | – | (0%) |
| FY'26 revenue constant currency changeGAAP | $2.73B | – | declined 2% year over year on a constant currency basis |
| FY'26 recurring revenueGAAP | $2.62B | – | – |
| FY'26 perpetual license revenueGAAP | $17.14M | – | – |
| FY'26 cost of revenueGAAP | $456.8M | – | – |
| FY'26 gross profitGAAP | $2.28B | – | – |
| FY'26 non-GAAP gross profitnon-GAAP | $2.33B | – | – |
| FY'26 operating incomeGAAP | $896.1M | – | – |
| FY'26 non-GAAP operating incomenon-GAAP | $1.28B | – | – |
| FY'26 operating marginGAAP | 33% | – | (310 bps) |
| FY'26 non-GAAP operating marginnon-GAAP | 47% | – | (80 bps) |
| FY'26 net incomeGAAP | $1.03B | – | – |
| FY'26 non-GAAP net incomenon-GAAP | $953.7M | – | – |
| FY'26 diluted earnings per shareGAAP | $8.93 | – | 47% |
| FY'26 non-GAAP diluted earnings per sharenon-GAAP | $8.24 | – | 4% |
| FY'26 operating cash flowGAAP | $899M | – | 4% |
| FY'26 free cash flownon-GAAP | $873M | – | 2% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q4'26 license revenueLicense revenue includes the portion of subscription revenue allocated to license. | $267.0M | – | – |
| Q4'26 support and cloud services revenueNot stated. | $382.1M | – | – |
| Q4'26 professional services revenueNot stated. | $24.13M | – | – |
| FY'26 license revenueLicense revenue includes the portion of subscription revenue allocated to license. | $1.11B | – | – |
| FY'26 support and cloud services revenueNot stated. | $1.53B | – | – |
| FY'26 professional services revenueNot stated. | $94.37M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Q4'26 repurchases of common stock: $ 298,720.
- FY'26 repurchases of common stock: $ 1,624,910.
- Q4'26 net proceeds associated with issuance of common stock: $ 12,308.
- FY'26 net proceeds associated with issuance of common stock: $ 25,470.
What drove it
- As reported ARR excluding divested businesses excludes Kepware and ThingWorx ARR from Q4’25 to facilitate period-to-period comparisons following the divestiture of those businesses in Q2’26.
- ARR increased 1% year over year on an as reported basis in Q4’26.
- In FY'26, PTC recognized gains of $463.9 million on the sale of its Kepware and ThingWorx businesses and $2.0 million related to finalization of contingent consideration associated with the FY'22 sale of a portion of its PLM services business.
- Q4'26 cash flow included approximately $24 million of divestiture-related costs and approximately $75 million of divestiture-related cash taxes.
- FY'26 cash flow included approximately $48 million of divestiture-related costs and approximately $83 million of divestiture-related cash taxes, partially offset by approximately $70 million of divestiture-related net free cash flow contribution.
Concerns
- Q4'26 revenue declined 25%, while Q4'26 GAAP operating margin declined by (1,690 bps) and non-GAAP operating margin declined by (1,320 bps).
- Q4'26 operating cash flow declined 55% and free cash flow declined 63%.
- Q4'26 free cash flow included approximately $5 million of capital expenditures related to moving a major R&D center to a new office, which are not expected to recur in future years.
- PTC is no longer providing quarterly or annual guidance in light of the pending Schneider Electric transaction.
What to watch
- Completion of the pending acquisition by Schneider Electric, which PTC said was subject to a definitive agreement entered into on October 5th, 2026.
- ARR excluding divested businesses following the Q2'26 sale of ThingWorx and Kepware.
- The extent to which divestiture-related costs, divestiture-related cash taxes and R&D-center relocation capital expenditures cease to affect cash flow in future years.
- Cash, debt and repurchase activity while PTC is no longer providing quarterly or annual guidance.
Balance sheet and cash flow
- Cash and cash equivalents as of September 30, 2026: $ 232,852.
- Debt, net of deferred issuance costs as of September 30, 2026: 1,609,763.
- Deferred revenue as of September 30, 2026: $ 821,091.
- Accounts receivable, net as of September 30, 2026: 1,107,131.
- FY'26 cash provided by operating activities: $ 898,609.
- FY'26 capital expenditures: $ 25,948.
- FY'26 divestiture of businesses: 531,482.
- FY'26 borrowings (payments) on debt, net: 411,250.
- FY'26 net change in cash, cash equivalents, and restricted cash: 48,437.
Analysis
PTC reported a sharply weaker fourth fiscal quarter on recognized revenue and profitability measures. Q4'26 revenue was $673 million versus $894 million, while GAAP operating margin was 32% versus 49% and non-GAAP operating margin was 46% versus 59%. GAAP diluted EPS was $1.44 versus $2.88, and non-GAAP diluted EPS was $2.03 versus $3.41. The company stated that revenue declined 24% year over year on a constant currency basis.
The recurring model indicators were more resilient than recognized revenue. Q4'26 ARR excluding divested businesses was $2,508 million, up 8%, and constant currency ARR excluding divested businesses was $2,545 million, up 9.7%. PTC also stated that ARR increased 1% year over year on an as reported basis in Q4'26. The company excluded Kepware and ThingWorx ARR from Q4'25 for the comparison following the divestiture of those businesses in Q2'26.
For FY'26, revenue was $2,733 million compared with $2,739 million, and PTC stated that revenue declined 2% year over year on a constant currency basis. FY'26 GAAP operating margin was 33% versus 36%, while non-GAAP operating margin was 47% versus 48%. FY'26 GAAP diluted EPS increased to $8.93 from $6.08, while non-GAAP diluted EPS increased to $8.24 from $7.94. The annual GAAP result included non-operating credits, net of $(465,150), including gains of $463.9 million on the sale of Kepware and ThingWorx.
Cash generation diverged between the quarter and the year. Q4'26 operating cash flow was $47 million and free cash flow was $38 million, compared with $104 million and $100 million, respectively. FY'26 operating cash flow rose to $899 million from $868 million and free cash flow rose to $873 million from $857 million. PTC identified approximately $24 million of Q4 divestiture-related costs, approximately $75 million of divestiture-related cash taxes and approximately $5 million of R&D-center relocation capital expenditures as items not expected to recur in future years.
Capital allocation remained substantial, with FY'26 repurchases of common stock of $1,624,910 and debt, net of deferred issuance costs, of 1,609,763 as of September 30, 2026. Cash and cash equivalents were $232,852. As previously announced on October 5th, 2026, PTC entered into a definitive agreement to be acquired by Schneider Electric. In light of that pending transaction, PTC suspended quarterly earnings conference calls and is no longer providing quarterly or annual guidance.
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported metrics were not provided.
- Forward revenue, margin, operating expense, tax rate and other financial guidance were not provided because PTC said it is no longer providing quarterly or annual guidance.
- Named executive quotes were not provided.
- Dividend information was not provided.
- Q4'26 and FY'26 gross-margin percentages were not provided.
- Q4'26 and FY'26 tax rates were not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
PTC is a provider of product lifecycle management software, recently divesting non‑core assets and negotiating a sale to Schneider Electric.
Ticker impact
PTC reported Q4 and full FY 2026 results, showing revenue decline and pending acquisition by Schneider Electric, with no guidance.
downward pressure as investors digest revenue decline and acquisition risk
Revenue fell 2% YoY, earnings per share halved, and the company halted guidance amid a pending sale, which typically triggers sell‑offs.
Market effects
Highlights challenges in the enterprise software sector with declining ARR and consolidation activity.
US software stocks may see modest pullback as a mid‑cap peer reports weaker results.
The Schneider Electric acquisition could affect industrial automation markets globally.
Counterpoint
The acquisition premium and long‑term synergies with Schneider could eventually boost valuation despite short‑term weakness.
Key entities
- companyPTC Inc.
Enterprise software provider reporting FY 2026 results.
- companySchneider Electric
Industrial automation firm slated to acquire PTC.
