A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
PTC reported a 6.8% year-over-year revenue decline to $600.05M in Q3 FY2026 due to the divestiture of its Kepware and ThingWorx businesses and a shortened large license contract duration, while ARR excluding divested businesses grew 7% year-over-year.
Revenue
$600.05M
-6.82% YoY
EPS (Diluted)
$1.03
-11.97% YoY
Gross Margin
81.7%
-1.2 pts YoY
Operating Income
$166.51M
-20.65% YoY
Ptc (PTC) reported Q3 FY2026 revenue of $600.05M, down 6.8% year over year. The company posted net income of $118.78M, down 16.0% from a year earlier, with diluted EPS of $1.03. Gross margin was 81.7%. Operating income was $166.51M, down 20.6% year over year. PTC's fiscal Q3 FY2026 corresponds to calendar Q2 2026.
PTC's Q3 FY2026 revenue fell 6.8% YoY to $600.05M following business divestitures, though organic ARR grew 7% and YTD operating cash flow increased 11.5% to $851.29M.
Last 4 quarters: 3 beats, 1 miss
Adjusted (non-GAAP) EPS of $1.58 versus the $1.58 analyst consensus — a -0.2% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.03.
Quarterly results reflected the Q2 FY2026 divestiture of Kepware and ThingWorx, which generated $46M in revenue in Q3 FY2025; excluding these businesses, ARR grew 7% YoY (9% constant currency) to $2.41B.
Source: 10-Q Item 2 MD&A, p.22
License revenue declined 18% YoY to $205.8M in Q3 FY2026, primarily driven by the shortened term duration of a single large contract renewal and expansion.
Source: 10-Q Item 2 MD&A, p.23-24
PLM software revenue fell 12% YoY to $335.8M due to divestitures and European softness, but organic PLM ARR grew 8% led by Windchill and Codebeamer; CAD ARR grew 6% YoY to $240.9M driven by Creo.
Source: 10-Q Item 2 MD&A, p.25
PTC generated $249.3M in Q3 Free Cash Flow (+3% YoY) and repurchased $525M of common stock in Q3 FY2026, supported by $225M in net credit facility borrowings and a newly authorized $2B buyback program.
Source: 10-Q Item 2 MD&A, p.22, 34
Investments in expanding software solutions with artificial intelligence capabilities may fail to yield expected ARR or cash flow growth if product releases are delayed or if enterprise customers are slow to adopt PTC's AI framework.
Source: 10-Q Item 2 MD&A, p.21
Global industrial headwinds, tariffs, high interest rates, and foreign exchange shifts pose risks; with 55% of revenue generated in non-USD currencies, FX swings directly affect top-line performance.
Source: 10-Q Item 2 MD&A, p.21, 23
Transition services agreements for the divested Kepware and ThingWorx businesses may fail to cover operating costs or lead to unexpected operational disruptions across remaining software groups.
Source: 10-Q Item 2 MD&A, p.22
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
Ptc (PTC) is next expected to report on , when the following quarter's results and any updated outlook will be available.
See the PTC earnings preview — expected date, analyst estimates and what to watch →
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $600.05M | $643.94M | -6.82% |
Cost of Revenue | $109.58M | $110.03M | -0.40% |
Gross Profit | $490.46M | $533.91M | -8.14% |
Operating Income | $166.51M | $209.83M | -20.65% |
Net Income | $118.78M | $141.33M | -15.95% |
EPS (Basic) | $1.04 | $1.18 | -11.86% |
EPS (Diluted) | $1.03 | $1.17 | -11.97% |
R&D Expense | $115.71M | $116.65M | -0.80% |
PTC reported Q3 FY2026 revenue of $600.05M, down 6.8% YoY due to the divestiture of Kepware and ThingWorx and a shortened large license contract duration. However, organic ARR excluding divested businesses grew 7% YoY to $2.41B, and quarterly free cash flow rose 3% to $249.30M.
PTC generated operating income of $166.51M and net income of $118.78M in Q3 FY2026, translating to diluted EPS of $1.03. Year-to-date operating cash flow reached $851.29M, supported by a business model where 95% of revenue is recurring.
Revenue fell 6.8% YoY primarily because the prior-year quarter included $46M from the divested Kepware and ThingWorx businesses. In addition, total license revenue dropped 18% YoY to $205.80M due to the shortened duration of a single large contract renewal.
PTC repurchased $525M worth of common shares in Q3 FY2026 ($500M cash paid in the quarter), bringing YTD share repurchases to $1.33B. The Board also authorized a new $2B repurchase program effective from October 2026 through September 2028.
Ptc (PTC) is next expected to report earnings on Nov 4, 2026. The date comes from the analyst earnings calendar and can shift until the company confirms it.
Expected release date, analyst estimates & what to watch
PTC reported strong financial performance in Q2 FY2026 with significant increases in revenue, net income, and EPS, driven by improved margins and effective cost management.
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.
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