PTC is a global software company that specializes in providing digital solutions to transform the engineering, manufacturing, and servicing of physical products . The company primarily serves industries such as industrials, aerospace and defense, electronics and high tech, automotive, and medical technology and life sciences . PTC's product offerings are categorized into several key areas, including Computer-Aided Design (CAD), Product Lifecycle Management (PLM), Application Lifecycle Management (ALM), and Service Lifecycle Management (SLM) .
- Product Lifecycle Management (PLM) - Offers solutions for managing the entire lifecycle of a product from inception, through engineering design and manufacturing, to service and disposal, led by the Windchill product.
- Computer-Aided Design (CAD) - Provides tools for creating precise drawings and technical illustrations, driven by the Creo product.
- Application Lifecycle Management (ALM) - Delivers software solutions for managing the lifecycle of applications, ensuring quality and compliance.
- Service Lifecycle Management (SLM) - Focuses on optimizing the service and maintenance of products to enhance customer satisfaction and operational efficiency.
You might also like
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Neil Barua ExecutiveBoard | President and Chief Executive Officer | None | Neil Barua became CEO in February 2024 after serving as CEO-Elect and President of Service Lifecycle Management. He previously led ServiceMax and IPC Systems. | View Report → |
Aaron von Staats Executive | Executive Vice President, General Counsel, and Corporate Secretary | None | Aaron von Staats has been General Counsel since 2003, overseeing legal and corporate governance matters. | |
Kristian Talvitie Executive | Executive Vice President and CFO | None | Kristian Talvitie has been CFO since May 2019, overseeing PTC's financial strategy and operations. | |
Robert Dahdah Executive | Executive Vice President and CRO | None | Robert Dahdah joined PTC in December 2024 as CRO, responsible for global sales and customer success. He previously held leadership roles at Microsoft, Nuance, and ADP. | |
Amar Hanspal Board | Independent Director | None | Amar Hanspal has been an Independent Director since 2022. He is the CEO of AMBR Technologies and previously held leadership roles at Autodesk and Bright Machines. | |
Dr. Corinna Lathan Board | Independent Director | CEO of De Oro Devices, Board Member at Ekso Bionics Holdings, Inc. | Dr. Corinna Lathan has been an Independent Director since 2017. She is a leader in technology innovation and serves as CEO of De Oro Devices and a board member at Ekso Bionics. | |
Janice Chaffin Board | Lead Independent Director | Informatica Inc., Synopsys, Inc. | Janice Chaffin has been an Independent Director since 2013 and became Lead Independent Director in 2023. She previously held leadership roles at Symantec and HP. | |
Mark Benjamin Board | Independent Director | Fidelity National Information Services, Inc. | Mark Benjamin has been an Independent Director since 2021. He is also a board member at FIS Global and has extensive leadership experience in technology companies. | |
Michal Katz Board | Independent Director | None | Michal Katz has been an Independent Director since 2022. She is the Head of Investment and Corporate Banking, Americas at Mizuho Financial Group. | |
Paul Lacy Board | Independent Director | None | Paul Lacy has been an Independent Director since 2009. He previously held leadership roles at Kronos Incorporated, contributing to its growth as a software company. | |
Robert Bernshteyn Board | Independent Director | General Partner at ICONIQ Capital | Robert Bernshteyn joined PTC's board in September 2024. He is a General Partner at ICONIQ Capital and was previously CEO of Coupa Software. | |
Robert Schechter Board | Independent Director | None | Robert Schechter has been an Independent Director since 2009. He previously served on the boards of Mimecast Limited and Telaria, Inc. |
-
Your fiscal '25 ARR growth guidance midpoint has decreased from double digits to single digits over the past 90 days; what specific factors have led to this reduced outlook?
-
You've mentioned potential near-term disruptions due to the go-to-market realignment; can you elaborate on the challenges you anticipate and how you plan to mitigate them to avoid impacting sales performance?
-
With macroeconomic uncertainties and possible budget impacts post-election, how confident are you in achieving your fiscal '25 targets, and what contingency plans are in place if market conditions worsen?
-
Given that your R&D expenses are growing at approximately 11% CAGR while SG&A is growing at approximately 4%, how will this imbalance affect your ability to drive sales and marketing effectiveness in a challenging selling environment?
-
As you shift to a vertically aligned go-to-market strategy focusing on five key industries, how are you ensuring that specialization doesn't lead to siloed operations and that cross-industry opportunities are not overlooked?
Research analysts who have asked questions during PTC earnings calls.
Jason Celino
KeyBanc Capital Markets
6 questions for PTC
Jay Vleeschhouwer
Griffin Securities, Inc.
6 questions for PTC
Tyler Radke
Citigroup Inc.
5 questions for PTC
Ken Wong
Oppenheimer & Co. Inc.
4 questions for PTC
Saket Kalia
Barclays Capital
4 questions for PTC
Adam Borg
Stifel Financial Corp.
3 questions for PTC
Blair Abernethy
Rosenblatt Securities Inc.
3 questions for PTC
Clarke Jeffries
Piper Sandler & Co.
3 questions for PTC
Joshua Tilton
Wolfe Research
3 questions for PTC
Matt Hedberg
RBC Capital Markets
3 questions for PTC
Nay Soe Naing
Berenberg Capital Markets LLC
3 questions for PTC
Andrew Obin
Bank of America
2 questions for PTC
Daniel Jester
BMO Capital Markets
2 questions for PTC
Hoi-Fung Wong
Oppenheimer & Co. Inc.
2 questions for PTC
Sitikantha Panigrahi
Mizuho
2 questions for PTC
C. Stephen Tusa
JPMorgan Chase & Co.
1 question for PTC
Joe Vruwink
Baird
1 question for PTC
Joseph Vruwink
Baird
1 question for PTC
Siti Panigrahi
Mizuho Securities
1 question for PTC
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
Competes in the enterprise CAD and PLM solutions market, addressing specific functional areas covered by the company's solutions. | |
Dassault Systèmes SA | Competes in the enterprise CAD and PLM solutions market, addressing specific functional areas covered by the company's solutions. |
Siemens AG | Competes in both the enterprise CAD and PLM solutions market and the ALM products market, addressing specific functional areas covered by the company's solutions. |
Competes in the ALM products market, addressing specific functional areas covered by the company's solutions. | |
Jama Software, Inc. | Competes in the ALM products market, addressing specific functional areas covered by the company's solutions. |
Competes in the SLM products market as an enterprise software company. | |
Competes in the SLM products market as an enterprise software company. | |
IFS AB | Competes in the SLM products market as an enterprise software company. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
pure-systems GmbH | 2023 | PTC acquired pure-systems GmbH for approximately $98 million in October 2023, financing the deal with EUR 85 million ($90 million) in borrowings to boost its Codebeamer ALM solution with enhanced software configuration management capabilities, complementing its hardware configuration strengths with Windchill. |
ServiceMax, Inc. | 2023 | PTC acquired ServiceMax, Inc. on January 3, 2023 for a total purchase price of $1,448.2 million, payable in two installments and financed through a combination of revolving and term loans, to integrate cloud-native, product-centric field service management capabilities into its closed-loop PLM offerings. |
Intland Software GmbH & Eger Invest GmbH | 2022 | PTC completed the acquisition of Intland Software GmbH and Eger Invest GmbH on April 29, 2022 for approximately $280 million, funded with cash on hand and a $264 million credit facility draw, aiming to expand its Application Lifecycle Management (ALM) capabilities. |
Recent press releases and 8-K filings for PTC.
- PTC reached a definitive agreement for TPG to acquire its Kepware and ThingWorx businesses, expected to close in H1 2026 with upfront proceeds of $565 million–$600 million (net ~$365 million assuming an April 1 close) and potential total consideration of up to $725 million
- In Q4 FY25, PTC delivered 8.5% constant currency ARR growth and 16% free cash flow growth year-over-year, ending the year with record deferred ARR under contract
- For FY26, PTC guides to 7%–9% constant currency ARR growth including and 7.5%–9.5% excluding Kepware and ThingWorx, and expects $1 billion of free cash flow
- With leverage below 1×, PTC plans to return excess cash to shareholders by buying back $150 million–$250 million of shares per quarter in FY26, starting with $200 million in Q1
- ARR reached $2,478 million in Q4 with 10% YoY growth (8.5% constant currency).
- Operating cash flow was $104 million and free cash flow was $100 million in Q4, up 6% and 7% YoY, respectively, beating guidance.
- Announced divestiture of Kepware and ThingWorx, expecting net proceeds of ~$365 million, closing in H1 2026.
- FY 2026 guidance: constant currency ARR growth of 7–9%, operating cash flow ~ $1,030 million, free cash flow ~ $1,000 million, and revenue of $2,650–2,915 million.
- PTC agreed to sell Kepware and ThingWorx to TPG, transaction expected to close in H1 2026 to concentrate on core CAD, PLM, ALM, SLM and AI-driven SaaS offerings.
- Q4 FY25 delivered 8.5% constant currency ARR growth and 16% free cash flow growth year-over-year.
- Record deferred ARR under contract at year-end provides strong visibility into FY26 performance.
- FY26 guidance set to 7–9% ARR growth including divested units (7.5–9.5% ex-divestiture) and $1 billion free cash flow, with $150–250 million quarterly share buybacks starting at $200 million in Q1.
- John Stevenson appointed Chief Product Officer to enhance product–R&D linkage and accelerate roadmap execution.
- PTC agreed to divest its Kepware and ThingWorx businesses to TPG for up to $725 million total consideration, with expected upfront proceeds of $565–$600 million and net proceeds around $365 million (assuming an April 1, 2026 close).
- In Q4 Fiscal 2025, PTC delivered 8.5% constant currency ARR growth, generated $100 million in free cash flow, and achieved 16% free cash flow growth for the full year to $857 million.
- PTC ended Q4 with $2.446 billion in constant currency ARR, up 8.5% year-over-year, and record deferred ARR under contract, providing strong visibility into Fiscal 2026 and beyond.
- For Fiscal 2026, PTC guides ARR growth of 7%–9% including Kepware and ThingWorx (and 7.5%–9.5% excluding) and targets $1 billion of free cash flow, with planned share buybacks of $150–$250 million per quarter.
- On November 5, 2025, PTC Inc. entered into an Asset Purchase Agreement with Parrot US Buyer, L.P., controlled by TPG Global, to divest its ThingWorx and Kepware businesses.
- The base purchase price is $600 million in cash at closing, subject to working capital, indebtedness and performance adjustments, plus up to $125 million of contingent consideration upon a future sale by the buyer.
- The closing is scheduled for the later of February 1, 2026 or the second business day after satisfaction of closing conditions, without any financing condition or PTC shareholder approval.
- Key closing conditions include clearance under the Hart-Scott-Rodino Act, other foreign regulatory approvals and customary representations, warranties and covenants; either party may terminate if not closed by August 5, 2026 (extendable).
- In FY 2025, PTC achieved 8.5% constant-currency ARR growth and 16% growth in operating and free cash flow, reaching record annual cash flows.
- The company announced the divestiture of Kepware and ThingWorx to focus on its CAD, PLM, ALM, and SLM offerings under its Intelligent Product Lifecycle strategy.
- For FY 2026, PTC guides 7%–9% constant-currency ARR growth, with operating cash flow of ~$1.03 billion and free cash flow of ~$1 billion, pending divestiture close.
- PTC plans to repurchase ~$200 million of shares in Q1 2026 under its $2 billion buyback authorization.
- PTC delivered 8.5% constant currency ARR growth in FY 2025, with Q4 ARR of $2.478 B (+10% YoY on a reported basis).
- Achieved record cash generation in FY 2025 with operating cash flow of $868 M (+16%) and free cash flow of $857 M (+16%), including Q4 operating cash flow of $104 M (+6%) and free cash flow of $100 M (+7%).
- FY 2025 revenue reached $2.739 B (+19%), driven by Q4 revenue of $894 M (+43% YoY).
- Completed divestiture of Kepware and ThingWorx to sharpen focus on its Intelligent Product Lifecycle portfolio.
- Provided FY 2026 guidance for 7–9% constant currency ARR growth, operating cash flow of ~$1.03 B, free cash flow of ~$1 B, and $200 M of share repurchases planned in Q1 2026.
- PTC and TPG signed a definitive agreement for TPG to acquire PTC’s Kepware and ThingWorx businesses, providing additional capital and expertise to drive their growth in industrial connectivity and IoT.
- PTC will refocus its resources on its Intelligent Product Lifecycle vision, concentrating on CAD, PLM, ALM, SLM and the adoption of AI-driven SaaS offerings.
- The transaction is expected to close in the first half of calendar year 2026, subject to regulatory approvals and other closing conditions.
- TPG will invest in the businesses through TPG Capital, its U.S. and European private equity platform.
- Kreate has acquired Precision Thermoplastic Components (PTC) in Lima, Ohio, adding 115,000 square feet of manufacturing space to its domestic footprint.
- The Lima facility features heavy industrial infrastructure—overhead cranes, material silos, high-capacity water systems—and can accommodate up to 24 new high-speed production lines.
- The acquisition broadens Kreate’s customer base, diversifies revenue streams, and secures exclusive rights to proprietary products, advancing its U.S.-based manufacturing strategy.
- Following the deal, Kreate operates over 2.1 million square feet of manufacturing, distribution, and engineering space across the United States.
- PTC delivered net new ARR near the high end of its Q1 guidance and has raised the low end of its Q4 net new ARR range, removing the prior downside scenario as macro risks stabilized.
- The company has completed its core-vertical go-to-market realignment, including account reshuffling and territory optimization, with ongoing enhancements in messaging and pipeline hygiene being rolled out.
- PTC’s first Agentic AI product—ServiceMax AI—went GA last quarter, and Windchill and CodeBeamer AI agents are expected to reach GA around the turn of the calendar year.
- In capital allocation, PTC aims to operate at net debt, maintain minimal cash balances, and return excess cash to shareholders primarily through share repurchases.