PTC (PTC) Stock Forecast & Price Target

PTC has demonstrated robust financial growth, with total revenue reaching $894 million, marking a 39% year-over-year increase on a constant currency basis and a 43% increase in reported terms. The company’s ability to achieve organic growth in its European-based ARR by 10% and 7% in the Americas, even within a challenging macro environment, underscores its strong market position and demand for its software offerings. Additionally, with projections of approximately 13.2% revenue growth for FY25 and expected total ARR of $2,415.6 million, PTC's strategic focus on product lifecycle management and augmented reality solutions positions it favorably for sustained growth.

PTC has adjusted its total revenue estimate for FY26 down by approximately 0.5%, reflecting a lack of year-over-year growth in net new annual recurring revenue (ARR) despite expectations for traction from its vertical go-to-market realignment. The revision of the FY26 ARR estimate by about 2.6% underscores the potential negative impact from business divestments and persistent macroeconomic challenges, which contribute to a bleak growth outlook moving forward. Consequently, the company's operating cash flow and free cash flow continue to exceed guidance; however, the overall sentiment remains cautious due to ongoing macro concerns and a declining ARR growth trajectory, leading to a lowered target price.