PTC reported financial results for its fourth fiscal quarter and full fiscal year ended September 30, 2025.
“Q4 capped a year of solid execution and focus. The divestiture of Kepware and ThingWorx will sharpen our portfolio around CAD, PLM, ALM, and SLM – the foundation of our Intelligent Product Lifecycle vision,” said Neil Barua, President and CEO, PTC.
“In FY’26 we will have a simpler portfolio, record deferred ARR, and the financial flexibility to accelerate both innovation and capital returns,” concluded Barua.
“FY’25 demonstrated the strength of PTC’s operating model. We delivered 8.5% ARR growth and 16% cash flow growth while continuing to invest in executing our Intelligent Product Lifecycle vision. Our FY’26 ARR guidance reflects that same balance of growth and discipline, including the expected timing impact from ramp deals and the pending divestiture,” said Kristian Talvitie, CFO.
“With leverage below 1x and approximately $1 billion of cash flow expected in FY’26, we have substantial capacity to invest for growth and return capital to shareholders. Our $2 billion authorization and planned $200 million share repurchase in Q1 underscore that confidence,” concluded Talvitie.
At the midpoint, FY’26 guidance implies continued double-digit cash flow expansion and solid visibility as multi-year ramp contracts activate
FY’26 financial guidance includes the following assumptions:
- We provide ARR guidance on a constant currency basis, using our FY’26 Plan foreign exchange rates (rates as of September 30, 2025) for all periods.
- We expect churn to remain low.
- For cash flow, due to largely similar invoicing seasonality and timing of expenses, and consistent with the past 5 years, we expect the majority of our collections to occur in the first half of our fiscal year and for fiscal Q4 to be our lowest cash flow generation quarter.
- Compared to FY’25, given our FY’26 ARR guidance range, FY’26 GAAP and non-GAAP operating expenses are expected to increase approximately 4%, primarily due to investments to drive future growth.
- Capital expenditures are expected to be approximately $30 million, with approximately $20 million of one-time capital expenditures in FY’26 related to moving a major R&D center to a new office.
- Cash interest payments are expected to be approximately $50 million to $70 million.
- Cash tax payments are expected to be approximately $130 million to $150 million.
- GAAP and non-GAAP tax rates are expected to be approximately 20% to 25%.
- GAAP P&L results are expected to include the items below, totaling approximately $310 million to $340 million, as well as their related tax effects:
- approximately $230 million to $260 million of stock-based compensation expense, and
- approximately $80 million of intangible asset amortization expense.
- We intend to repurchase between $150 million and $250 million of our common stock per quarter in FY’26. In Q1’26, we intend to repurchase approximately $200 million of our common stock.
- We expect a decrease in our Q1’26 fully diluted share count to approximately 120 million shares, compared to 121 million shares in Q1’25.
PTC’s Fourth Fiscal Quarter Results Conference Call
PTC will host a conference call to discuss results at 5:00 pm ET on Wednesday, November 5, 2025. To participate in the live conference call, dial (888) 596-4144 or (646) 968-2525, provide the passcode 3475783, and press # or log in to the webcast, available on PTC’s Investor Relations website. A replay will also be available.
