How did PTC perform financially in fiscal 2025?

Total revenue was $2,739.2 million, up 19% year over year, and GAAP operating margin was 36% versus 26% a year earlier. Net income was $741.0 million, compared with $376.3 million in fiscal 2024. Operating cash flow was $867.7 million and free cash flow was $856.7 million, each up 16%.

What is the Kepware and ThingWorx divestiture?

PTC is divesting its Kepware industrial connectivity and ThingWorx Internet of Things businesses. The company says this will sharpen its portfolio around CAD, PLM, ALM and SLM. The filing states that closing depends on Hart-Scott-Rodino and other regulatory approvals, and that the deal includes additional contingent consideration of up to $125 million.

What does PTC expect for fiscal 2026?

Guidance includes constant currency ARR growth of 7% to 9%, revenue of $2,650 million to $2,915 million, GAAP EPS of $4.37 to $6.87, and non-GAAP EPS of $6.49 to $8.95. Operating cash flow is expected to be about $1,030 million and free cash flow about $1,000 million. These figures include Kepware and ThingWorx for the full year and will be updated when the divestiture closes.

How is PTC returning capital to shareholders?

PTC has a $2 billion share repurchase authorization. The company expects to repurchase about $200 million of common stock in Q1'26 and intends to repurchase between $150 million and $250 million per quarter in FY'26. Fiscal 2025 repurchases totaled $300.0 million, according to the cash flow statement.

What does the fiscal 2026 ARR guidance exclude or include?

The company provided two ARR views. Constant currency ARR excluding Kepware and ThingWorx is guided to 7.5% to 9.5% growth from a FY'25 actual of $2,319 million. Including both businesses, ARR is guided to 7% to 9% growth from $2,478 million. Management cited the expected timing impact of ramp deals and the pending divestiture.

PTC 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed November 5, 2025. Cited figures are marked; the original filing is the authoritative source.

PTC Inc. reported fourth-quarter and full-year fiscal 2025 results for the period ended September 30, 2025.

Fiscal 2025 total revenue was $2,739.2 million^a, up 19% year over year (18% in constant currency), and GAAP diluted EPS was $6.14 versus $3.12 a year earlier. Non-GAAP diluted EPS was $8.00. Operating cash flow was $867.7 million and free cash flow was $856.7 million, each up 16%.

Constant currency ARR grew 8.5% to $2,446 million^b on the FY'25 Plan FX basis, and reported ARR was $2,478 million. Management's strategic focus is on its Intelligent Product Lifecycle vision, including the pending divestiture of the Kepware industrial connectivity and ThingWorx Internet of Things businesses. The filing says the sale is expected to sharpen the portfolio around CAD, PLM, ALM and SLM.

The divestiture carries additional contingent consideration of up to $125 million^c, and its closing is subject to Hart-Scott-Rodino and other regulatory approvals. For fiscal 2026, PTC guided to constant currency ARR growth of 7% to 9% including Kepware and ThingWorx, operating cash flow of approximately $1.03 billion, and free cash flow of approximately $1 billion.

Guidance includes the two businesses for the full year and will be updated when the divestiture closes. The company plans to repurchase about $200 million^d of stock in Q1'26 under its $2 billion authorization, and management stated that leverage is below 1x.

02—Key points

Key Highlights

Fiscal 2025 total revenue of $2,739.2 million rose 19% year over year; Q4'25 revenue of $893.8 million rose 43%.
Record fiscal 2025 operating cash flow of $867.7 million and free cash flow of $856.7 million, each up 16%.
Reported ARR was $2,478 million at September 30, 2025, up 10% year over year; constant currency ARR growth was 8.5%.
GAAP diluted EPS for fiscal 2025 was $6.14 and non-GAAP diluted EPS was $8.00, versus $3.12 and $5.08 in fiscal 2024.
Pending divestiture of the Kepware and ThingWorx IoT businesses, with up to $125 million of additional contingent consideration tied to future thresholds.
FY'26 guidance: constant currency ARR growth of 7% to 9%, operating cash flow of approximately $1.03 billion, and free cash flow of approximately $1 billion, all including Kepware and ThingWorx.
Board-authorized $2 billion share repurchase program; the company intends to repurchase about $200 million of stock in Q1'26 and $150 million to $250 million per quarter in FY'26.

03—Questions

Frequently Asked Questions

How did PTC perform financially in fiscal 2025?
Total revenue was $2,739.2 million, up 19% year over year, and GAAP operating margin was 36% versus 26% a year earlier. Net income was $741.0 million, compared with $376.3 million in fiscal 2024. Operating cash flow was $867.7 million and free cash flow was $856.7 million, each up 16%.
What is the Kepware and ThingWorx divestiture?
PTC is divesting its Kepware industrial connectivity and ThingWorx Internet of Things businesses. The company says this will sharpen its portfolio around CAD, PLM, ALM and SLM. The filing states that closing depends on Hart-Scott-Rodino and other regulatory approvals, and that the deal includes additional contingent consideration of up to $125 million.
What does PTC expect for fiscal 2026?
Guidance includes constant currency ARR growth of 7% to 9%, revenue of $2,650 million to $2,915 million, GAAP EPS of $4.37 to $6.87, and non-GAAP EPS of $6.49 to $8.95. Operating cash flow is expected to be about $1,030 million and free cash flow about $1,000 million. These figures include Kepware and ThingWorx for the full year and will be updated when the divestiture closes.
How is PTC returning capital to shareholders?
PTC has a $2 billion share repurchase authorization. The company expects to repurchase about $200 million of common stock in Q1'26 and intends to repurchase between $150 million and $250 million per quarter in FY'26. Fiscal 2025 repurchases totaled $300.0 million, according to the cash flow statement.
What does the fiscal 2026 ARR guidance exclude or include?
The company provided two ARR views. Constant currency ARR excluding Kepware and ThingWorx is guided to 7.5% to 9.5% growth from a FY'25 actual of $2,319 million. Including both businesses, ARR is guided to 7% to 9% growth from $2,478 million. Management cited the expected timing impact of ramp deals and the pending divestiture.

04—Continue

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