PTC Inc. (PTC) Stock Price & How to Invest
Last updated July 2026
Short answer
You can invest in PTC Inc. (PTC) by buying shares or fractional shares at any major broker, through a software or technology ETF that holds it, or as one holding in a thematic basket. PTC is a large industrial-software company that sells recurring subscriptions to computer-aided design (CAD) and product lifecycle management (PLM) tools, so the thesis rests on steady growth in annual recurring revenue (ARR) and expanding margins rather than on any single product cycle. The single most important thing to understand is that PTC is a high-margin, subscription-based software compounder tied to global manufacturing and engineering spending, not a fast-growth speculative name.
PTC stock price
As of 2026-07-22, PTC Inc. (PTC) last closed at $113.11, down 43.8% over the past year. Over the past 52 weeks it has traded between $112.33 and $216.53.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or PTC Inc.'s investor relations page. Walnut is informational, not investment advice.
What does PTC Inc. (PTC) do?
PTC Inc. is a Boston-based industrial-software company that builds the digital tools manufacturers use to design, engineer, and manage physical products. Its core franchises are Creo (parametric CAD for mechanical design), Windchill (enterprise PLM that manages product data across design, manufacturing, and service), and Onshape (browser-based cloud CAD acquired in 2019). Around those sit Arena (cloud PLM and quality management), Codebeamer (application lifecycle management for software-defined products), ThingWorx (industrial IoT), and ServiceMax (service lifecycle management). Nearly all of PTC's revenue is now subscription-based and recurring, which is why management steers the business by annual recurring revenue (ARR) rather than headline sales, and why the company earns software-like margins.
The investment picture in mid-2026 is one of steady, high-quality growth. In its fiscal second quarter (reported in 2026), PTC posted revenue of about $774 million, up roughly 22% year over year, with constant-currency ARR of about $2.39 billion growing around 8.5% (roughly 11% excluding divested units). Non-GAAP operating margin reached about 53%, and the company raised full-year fiscal 2026 revenue guidance to roughly $2.58 billion to $2.82 billion. PTC also sold its Kepware connectivity unit, using proceeds to fund about $626 million of buybacks in the quarter (including a $375 million accelerated repurchase). The bull case is durable ARR compounding, expanding free cash flow, and new AI capabilities layered across the portfolio (Creo 13 AI Assistant, new AI agents, and an NVIDIA Omniverse collaboration). The counterweight is a premium valuation and sensitivity to industrial and engineering budgets.
What's driving PTC Inc. (PTC)?
1. Recurring-revenue ARR compounding
PTC's model is now almost entirely subscription-based, so growth shows up as annual recurring revenue rather than one-time license sales. Constant-currency ARR reached about $2.39 billion in the fiscal second quarter of 2026, growing roughly 8.5% (around 11% excluding divested businesses). Steady ARR growth combined with high renewal rates is the core engine that turns a mature software base into rising, predictable cash flow.
2. Margin expansion and free cash flow
As a scaled software business, PTC converts revenue growth into widening margins: non-GAAP operating margin hit about 53% in the fiscal second quarter of 2026, and non-GAAP operating income rose roughly 37%. Operating cash flow of about $321 million funds buybacks and debt reduction. The pairing of durable ARR with expanding margins is what gives the stock its compounder profile rather than a pure growth story.
3. PLM and CAD leadership plus AI
PTC is repeatedly ranked among the top PLM and CAD vendors, named a Leader in the 2026 Gartner Magic Quadrant for PLM in discrete manufacturing for Windchill. It is layering AI across the portfolio, including the Creo 13 AI Assistant, new AI agents unveiled at its PTC NEXT event, and a collaboration with NVIDIA Omniverse. These launches aim to raise the value of each seat and deepen switching costs inside engineering workflows.
4. Portfolio focus and capital returns
PTC has been sharpening its portfolio, divesting its Kepware connectivity unit and directing proceeds toward share repurchases (about $626 million in the fiscal second quarter of 2026, including a $375 million accelerated buyback). Pruning non-core assets while buying back stock can lift per-share metrics and concentrate the business on its highest-value CAD and PLM franchises, though it also removes some revenue from the reported top line.
What are the risks to PTC Inc. (PTC)?
The most immediate risk is valuation: PTC trades at a premium software multiple (forward P/E around 15 and a much lower trailing figure inflated by a one-time divestiture gain), so disappointing ARR or margins could compress the stock even if the business stays healthy. Demand is tied to global manufacturing and engineering budgets, which can soften in an industrial slowdown and slow new-seat additions. Competition is intense from larger, well-capitalized rivals like Dassault Systemes and Siemens, plus Autodesk and SAP, all pushing their own cloud and AI roadmaps. Currency swings affect reported ARR because PTC sells worldwide, and divestitures make year-over-year comparisons noisier. Finally, the AI investments across CAD and PLM are promising but unproven as durable revenue drivers, so execution matters.
How is PTC Inc. (PTC) valued? (approximate, July 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see PTC Inc.'s investor relations page or your broker.
- Revenue (TTM): ~$2.5 billion (fiscal Q2 2026 was ~$774 million, up ~22% year over year)
- Annual recurring revenue (ARR): ~$2.39 billion (constant currency), growing ~8.5% (~11% excluding divestitures)
- Non-GAAP operating margin (Q2 FY26): ~53% (non-GAAP operating income up ~37% to ~$411 million)
- FY2026 revenue guidance: ~$2.58 billion to ~$2.82 billion (raised)
- Market cap: ~$13.4 billion (stock ~$114 per share)
- Forward P/E / analyst target: ~15x forward (trailing ~11x is inflated by a divestiture gain); average 12-month target ~$175 to ~$189
Figures are approximate and tied to the asOf date; verify live numbers before acting. PTC's trailing P/E looks low mainly because GAAP earnings were boosted by a large one-time gain on the Kepware divestiture, so the forward multiple around 15x is the more meaningful gauge of its recurring economics. Analyst targets skew bullish on continued ARR growth and margin expansion, but they embed an assumption that industrial-software demand and AI-driven upsell stay strong.
Who competes with PTC Inc. (PTC)?
PLM and CAD majors
Dassault Systemes and Siemens are PTC's closest peers, competing head to head in enterprise PLM and CAD across large manufacturers and regulated industries. Dassault leads global PLM share with roughly 16% while PTC holds an estimated 12% to 15%, and Siemens ranks near the top in CAD software as a service. These three are consistently named the PLM market leaders.
Adjacent design and enterprise-software players
Autodesk competes in CAD and design software, while SAP, Oracle, and Aras offer PLM or PLM-adjacent enterprise systems that can substitute for parts of PTC's stack. Together with PTC, Autodesk, Dassault, and Siemens form the CAD oligopoly, but SAP and Oracle bring broader enterprise footprints that can pull PLM decisions toward incumbent ERP vendors.
Cloud-native and niche challengers
Cloud-first tools compete for newer engineering teams, and PTC itself plays here through Onshape and Arena. Specialized vendors in application lifecycle management, industrial IoT, and service lifecycle management overlap with PTC's Codebeamer, ThingWorx, and ServiceMax products. These are less about full-suite share and more about specific workflows where a focused challenger can win a seat.
How to invest in PTC Inc. (PTC)
There are three common ways to get PTC exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so PTC sits alongside other stocks that express the same thesis.
Walnut takes the basket route. Describe a thesis where PTC fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.
The bottom line on PTC Inc. (PTC)
PTC is a profitable, recurring-revenue industrial-software leader in CAD and PLM whose story is durable ARR growth and high margins offset by a rich valuation and exposure to manufacturing capital spending, so the question is how much you value quality and stability against the price you pay for it.
More on PTC Inc. (PTC)
Whether PTC is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is PTC a buy?, and where the stock could go from here in the PTC stock forecast.
For income investors, whether PTC pays a dividend and how the payout looks is covered in does PTC pay a dividend?
Build a basket around PTC with Walnut
Use PTC Inc. as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
Is PTC a good stock to buy right now?
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That depends on your goals, time horizon, and risk tolerance, and this is not investment advice. The bull case is durable annual recurring revenue growth, non-GAAP margins around 53%, raised fiscal 2026 guidance, and AI features layered across CAD and PLM. The bear case is a premium valuation (forward P/E around 15) and exposure to manufacturing budgets and strong rivals like Dassault and Siemens. Weigh both against your portfolio.
What does PTC actually do?
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PTC builds industrial software that manufacturers use to design and manage physical products. Its core products are Creo (CAD for mechanical design), Windchill (enterprise product lifecycle management), and Onshape (cloud CAD), plus Arena, Codebeamer, ThingWorx, and ServiceMax. Almost all revenue is recurring subscription income, which is why the company steers by annual recurring revenue rather than one-time license sales.
What is ARR and why does PTC emphasize it?
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ARR stands for annual recurring revenue, the annualized value of PTC's active subscription contracts. Because PTC has moved almost entirely to subscriptions, ARR is a cleaner signal of underlying growth than reported revenue, which can be lumpy. In its fiscal second quarter of 2026, constant-currency ARR was about $2.39 billion, growing roughly 8.5% (around 11% excluding divested units).
Who are PTC's main competitors?
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PTC competes most directly with Dassault Systemes and Siemens in enterprise PLM and CAD, with Autodesk a major rival in design software and SAP, Oracle, and Aras offering PLM-adjacent enterprise systems. Dassault leads global PLM share at roughly 16% while PTC holds an estimated 12% to 15%. All are pushing cloud and AI roadmaps, so competition is intense.
Does PTC pay a dividend?
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PTC has historically not been known as a dividend stock and returns cash mainly through share buybacks. In its fiscal second quarter of 2026 it repurchased about $626 million of stock, including a $375 million accelerated buyback funded by divestiture proceeds. Always check the latest company disclosures for any change in its dividend or buyback policy before assuming a payout.
Why did PTC's GAAP earnings jump so much?
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GAAP earnings in the fiscal second quarter of 2026 were boosted by a large one-time gain of roughly $463 million from selling its Kepware connectivity unit, which lifted GAAP EPS to about $4.98. Non-GAAP EPS, which strips out one-time items, was about $2.69, up around 50%. That is why the trailing P/E looks unusually low and the forward multiple is a better guide.
How is PTC using artificial intelligence?
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PTC is embedding AI across its portfolio, including the Creo 13 AI Assistant for design guidance, new AI agents and integrations unveiled at its PTC NEXT event in 2026, and a collaboration with NVIDIA Omniverse to speed simulation of complex products. The goal is to raise the value of each software seat and deepen customer workflows, though these features are still early as durable revenue drivers.
What are the main risks of investing in PTC?
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The central risks are a premium valuation that leaves little room for disappointment, and demand tied to global manufacturing and engineering budgets that can soften in a slowdown. Competition from larger rivals like Dassault and Siemens is intense, currency swings affect reported ARR, and divestitures make comparisons noisier. Its AI investments are promising but unproven as long-term growth drivers, so execution and pricing power both matter.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with PTC Inc.'s investor relations page or your broker before making investment decisions.