AI Takeaway
PTC delivered a standout Q1 FY2026 with revenue surging 21.4% YoY to $685.8M and net income more than doubling to $166.5M, driven by strong operating leverage that expanded operating margin by nearly 12 percentage points.
Revenue
$685.83M
++21.36% YoY
EPS (Basic)
$1.40
++105.88% YoY
Gross Margin
82.8%
++2.61% YoY
Operating Income
$221.13M
++91.42% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue grew 21.4% YoY to $685.8M in Q1 FY2026, up from $565.1M in Q1 FY2025, reflecting robust demand for PTC's industrial software solutions including PLM and IoT products.
Source: Source: 10-Q Income Statement
Operating income nearly doubled, rising 91.4% YoY to $221.1M, while operating margin expanded dramatically from 20.4% to 32.2%—an improvement of approximately 11.8 percentage points—demonstrating strong cost discipline relative to revenue growth.
Source: Source: 10-Q Income Statement
Gross margin improved to 82.8% from 80.2% a year ago, a 2.6 percentage point gain, even as cost of revenue rose only 5.3% against 21.4% revenue growth, suggesting a favorable shift toward higher-margin software and subscription revenue.
Source: Source: 10-Q Income Statement & Key Ratios
2 more insights available
Upgrade to unlockLong-term debt increased 15.1% YoY to $1.17B while the company simultaneously accelerated share buybacks to $200M in a single quarter. This dual pressure on cash could constrain financial flexibility if business conditions deteriorate. The debt-to-equity ratio stands at 0.67.
Source: Source: 10-Q Balance Sheet & Cash Flow Statement
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Upgrade to unlockReported EPS of $1.92 versus the $1.58 analyst consensus — a +21.6% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $685.83M | $565.13M | +21.36% |
Cost of Revenue | $117.75M | $111.8M | +5.32% |
Gross Profit | $568.08M | $453.33M | +25.31% |
Operating Income | $221.13M | $115.52M | +91.42% |
Net Income | $166.52M | $82.23M | +102.50% |
EPS (Basic) | $1.40 | $0.68 | +105.88% |
EPS (Diluted) | $1.39 | $0.68 | +104.41% |
R&D Expense | $119.98M | $115.52M | +3.87% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $6.43B | $6.08B | +5.79% |
Current Assets | $1.39B | $1.08B | +27.93% |
Total Liabilities | $2.58B | $2.85B | -9.16% |
Current Liabilities | $1.14B | $1.56B | -27.14% |
Stockholders' Equity | $3.84B | $3.23B | +18.97% |
Cash & Equivalents | $209.74M | $196.34M | +6.82% |
Long-Term Debt | $1.17B | $1.02B | +15.07% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $269.75M | $238.43M | +13.13% |
Investing Cash Flow | $859,000 | $25.54M | -96.64% |
Financing Cash Flow | $-244.07M | $-324.32M | +24.74% |
Share Buybacks | $200.03M | $75M | +166.71% |
D&A | $25.3M | $25.82M | -2.03% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 82.8% | 80.2% | +2.61% |
Operating Margin | 32.2% | 20.4% | +11.80% |
Net Margin | 24.3% | — | — |
ROE | 4.3% | — | — |
ROA | 2.6% | — | — |
Current Ratio | $1.219 | — | — |
Debt to Equity | $0.673 | — | — |
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PTC delivered an exceptional Q1 FY2026, with revenue rising 21.4% YoY to $685.8M and net income more than doubling to $166.5M. Diluted EPS came in at $1.39, up 104.4% from $0.68 in Q1 FY2025.
PTC's 21.4% revenue growth to $685.8M was driven by strong demand for its industrial software solutions, with gross margin expanding to 82.8% suggesting a favorable mix shift toward higher-margin subscription and software products. Cost of revenue grew only 5.3%, far below the revenue growth rate, indicating scalable software delivery.
Yes, PTC's profitability improved dramatically in Q1 FY2026, with operating margin expanding nearly 12 percentage points to 32.2% and net margin reaching 24.3%. Operating income surged 91.4% to $221.1M, reflecting significant operating leverage on the higher revenue base.
PTC's balance sheet strengthened in Q1 FY2026, with stockholders' equity growing 19.0% YoY to $3.84B and total liabilities declining 9.2% to $2.58B. However, cash and equivalents remain relatively modest at $209.7M given $200M in share buybacks and $1.17B in long-term debt.
PTC repurchased $200.0M worth of shares in Q1 FY2026, a 166.7% increase from $75.0M in Q1 FY2025, signaling strong management confidence in the company's outlook. This aggressive buyback program contributed to the 104.4% YoY increase in diluted EPS.