PTC Revamps Go-To-Market Approach But Client Decisions Slow

Jun. 11, 2025 12:02 PM ETPTC Inc. (PTC) StockPTC1 Comment
(8min)

Summary

  • PTC recently delivered good quarterly results, beating revenue and earnings estimates, but customer caution may slow growth in the second half of fiscal 2025.
  • Recent sales team restructuring and a focus on vertical markets are promising, yet macroeconomic pressures are causing management to guide conservatively.
  • PTC's capital allocation has been efficient enough, with significant stock buybacks offsetting high stock-based compensation, but ARR growth guidance has been trimmed to 9%.
  • Despite operational improvements, valuation multiples have declined, and customer delays persist, so I maintain a neutral Hold rating for now.
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Investment Outlook

PTC Inc. (NASDAQ:PTC) reported positive financial results for its most recent quarter, beating both revenue and earnings estimates.

I previously analyzed PTC in January 2025 with a Hold outlook due to uncertainties in

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This article was written by

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Donovan Jones is a research specialist with 15 years of experience identifying opportunities for IPOs and public software companies.

He also leads the investing group IPO Edge, which offers actionable information on growth stocks through first-look IPO filings, previews on upcoming IPOs, an IPO calendar for tracking what’s on the horizon, a database of U.S. IPOs, and a guide to IPO investing to walk you through the entire IPO lifecycle - from filing to listing to quiet period and lockup expiration dates.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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