PTC — Fourth Fiscal Quarter and Full Fiscal Year 2026 Earnings Summary

Financial Performance:

• Q4 2026 revenue was $673 million, a 25% decline year-over-year from $894 million in Q4 2025; constant currency revenue declined 24%.
• Full fiscal year 2026 revenue was $2,733 million, essentially flat (0% change) compared to $2,739 million in FY 2025; constant currency revenue declined 2%.
• Q4 2026 GAAP operating margin was 32%, down from 49% in Q4 2025 (a 1,690 basis point decrease); Non-GAAP operating margin was 46%, down from 59%.
• Full fiscal year 2026 GAAP operating margin was 33%, down from 36% in FY 2025 (310 basis points); Non-GAAP operating margin was 47%, down from 48%.
• Q4 2026 GAAP earnings per share (EPS) were $1.44, down 50% from $2.88 in Q4 2025; Non-GAAP EPS were $2.03, down 40%.
• Full fiscal year 2026 GAAP EPS were $8.93, up 47% from $6.08 in FY 2025; Non-GAAP EPS were $8.24, up 4%.
• Q4 2026 operating cash flow was $475 million, a 55% decrease from $104 million in Q4 2025; Free cash flow was $385 million, a 63% decrease from $100 million.
• Full fiscal year 2026 operating cash flow was $899 million, up 4% from $868 million in FY 2025; Free cash flow was $873 million, up 2%.
• Q4 2026 cash flow included approximately $24 million in divestiture-related costs and $75 million in divestiture-related cash taxes.
• FY 2026 cash flow included approximately $48 million in divestiture-related costs, $83 million in divestiture-related cash taxes, and $14 million in one-time capital expenditures for an R&D center move.
• As of September 30, 2026, deferred revenue was $821 million, down from $827 million in September 2025.
• As of September 30, 2026, debt was $1,610 million, up from $1,197 million in September 2025.
• Q4 2026 As Reported ARR excluding divested businesses was $2,508 million, up 8% year-over-year; Constant currency ARR excluding divested businesses was $2,545 million, up 9.7%.

Guidance and Future Outlook:

• PTC has suspended quarterly earnings conference calls and is no longer providing quarterly or annual guidance due to the pending acquisition.

Business Segments and Product Lines:

• In Q2 2026, PTC sold its Kepware and ThingWorx businesses; ARR comparisons for Q4 2025 exclude these businesses to facilitate period-to-period comparisons.
• Revenue composition in Q4 2026 included $645 million in recurring revenue, $4 million in perpetual license revenue, and $24 million in professional services.
• Revenue composition in FY 2026 included $2,622 million in recurring revenue, $17 million in perpetual license revenue, and $94 million in professional services.
• In FY 2026, PTC recognized a $463.9 million gain on the sale of Kepware and ThingWorx businesses.

Market and Competitive Landscape:

• No specific market share, competitive landscape, or market trend data is provided in the press release.

Risks and Challenges:

• The pending acquisition by Schneider Electric is the primary factor affecting future guidance and conference call availability.
• Divestiture-related costs and taxes incurred in Q4 2026 and FY 2026 are noted as non-recurring items impacting cash flow and earnings.
• Revenue recognition is impacted by ASC 606 accounting standards.

Management Commentary and Tone:

• The press release highlights a "Strategic focus on Intelligent Product Lifecycle vision."
• Management notes that the divestiture-related costs and taxes are not expected to recur in future years.

Other Key Points:

• PTC entered into a definitive agreement on October 5, 2026, to be acquired by Schneider Electric.
• In FY 2026, PTC repurchased $1,625 million of common stock.
• In FY 2026, PTC made a $100 million contribution to a solar energy equity investment.
• In FY 2026, PTC borrowed $411 million on debt, net, compared to net repayments of $553 million in FY 2025.
• In Q4 2026, PTC borrowed $186 million on debt, net.
• FY 2025 cash flow included $20 million in outflows related to go-to-market realignment.
• FY 2026 free cash flow included $5 million in one-time capital expenditures related to moving a major R&D center.