PTC (PTC) Q2 FY2026 earnings: revenue $774 million, up 21.7% on the year

PTC Inc. (PTC) reported revenue of $774 million for Q2 FY2026, the quarter ended 31 March 2026, up 21.7% on the same quarter a year earlier. Net income was $591 million, up 263.2% on the year, and diluted earnings per share $4.98. The figures are the company's own, from the 10-Q it filed with the SEC on 7 May 2026.

Revenue

$774 million

+21.7% on the year · +12.9% on the quarter

Q3 FY2024Q2 FY2026

Operating margin

38.2%

35.1% a year earlier

Q3 FY2024Q2 FY2026

Net income

$591 million

+263.2% on the year · +254.8% on the quarter

Q3 FY2024Q2 FY2026

Diluted EPS

$4.98

+268.9% on the year · +258.3% on the quarter

Q3 FY2024Q2 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 4 raised, 6 lowered, 9 new, 4 kept.

Revenue grew on constant currency basis: Reported revenue was $774.3 million, up 22% year over year. Constant currency revenue grew 15% year over year.
Divestiture gain lifted GAAP EPS: Diluted EPS was $4.98 against $1.35, helped by a $463 million gain on the Kepware and ThingWorx sale. Non-GAAP diluted EPS was $2.69 against $1.79.
Constant currency ARR grew 8.5%: Constant currency ARR excluding divested businesses reached $2,388 million, up from $2,200 million. Management said it expects churn to remain low.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Revenue	774	686	636	+12.9%	+21.7%
Cost of revenue	114	118	106	-3.5%	+6.9%
Gross profit	661	568	530	+16.3%	+24.6%
Gross margin	85.3%	82.8%	83.3%
Research and development	124	120	111	+3.5%	+11.8%
Operating income	296	221	223	+33.8%	+32.4%
Operating margin	38.2%	32.2%	35.1%
Interest expense	15.3	17.3	19.6	-11.2%	-21.8%
Pre-tax income	747	203	205	+267.9%	+263.9%
Income tax	156	36.5	42.6	+328.1%	+266.3%
Effective tax rate	20.9%	18.0%	20.8%
Net income	591	167	163	+254.8%	+263.2%
Net margin	76.3%	24.3%	25.6%
Diluted EPS	$4.98	$1.39	$1.35	+258.3%	+268.9%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Operating cash flow	321	270	281	+19.0%	+14.1%
Capital expenditure	2.7	2.3	2.8	+14.1%	-4.9%
Free cash flow	318	267	279	+19.0%	+14.3%
Free cash flow margin	41.1%	39.0%	43.8%
Cash from investing	534	0.9	-18.9	+62,081.8%
Cash from financing	-623	-244	-227
Depreciation and amortisation	24.7	25.3	25.4	-2.4%	-2.9%
Share-based compensation	68.6	57.9	51.5	+18.5%	+33.2%
Buybacks	626	200	75.0	+213.0%	+734.8%
Diluted shares, weighted	119m	120m	121m	-1.2%	-1.9%
Shares outstanding at period end	115m	119m	120m	-2.9%	-3.7%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q2 FY2026	Q1 FY2026	Q2 FY2025	On the quarter	On the year
Shareholders' equity	3,860	3,842	3,386	+0.5%	+14.0%
Debt	1,198	1,198	1,389	+0.0%	-13.8%
Operating lease liabilities	160	160	154	+0.1%	+4.2%
Other liabilities	1,319	1,227	1,233	+7.5%	+7.0%
Total liabilities and equity	6,537	6,427	6,162	+1.7%	+6.1%
Fixed assets	54.7	57.2	68.0	-4.3%	-19.5%
Goodwill	3,403	3,413	3,444	-0.3%	-1.2%
Intangible assets	783	804	856	-2.6%	-8.5%
Cash and equivalents	439	210	235	+109.4%	+86.7%
Receivables	853	804	717	+6.0%	+19.0%
Other assets	1,005	1,139	843	-11.8%	+19.2%
Total assets	6,537	6,427	6,162	+1.7%	+6.1%

Questions

What was PTC's revenue in Q2 FY2026?

PTC (PTC) reported revenue of $774 million for Q2 FY2026, the quarter ended 31 March 2026, up 21.7% on the same quarter a year earlier.

How much did PTC earn in Q2 FY2026?

Net income for Q2 FY2026 was $591 million, up 263.2% on the year, and diluted earnings per share $4.98.

When did PTC report Q2 FY2026 results?

PTC filed its 10-Q for the quarter ended 31 March 2026 with the SEC on 7 May 2026.

Quarterly results, the last 20 quarters

	Q4 FY2021 *	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026
Revenue	481	458	505	462	508	466	542	542	547	550	603	519	627	565	636	644	894	686	774	600
Cost of revenue	99.7	95.1	93.3	102	95.5	95.8	114	116	116	110	110	112	113	112	106	110	117	118	114	110
Gross profit	381	363	412	360	412	370	429	426	431	440	493	407	514	453	530	534	777	568	661	490
Gross margin	79%	79%	82%	78%	81%	79%	79%	79%	79%	80%	82%	78%	82%	80%	83%	83%	87%	83%	85%	82%
R&D	78.4	80.5	81.9	88.2	88.2	88.2	100	104	102	106	107	110	110	116	111	117	115	120	124	116
Operating income	115	62.2	159	80.0	146	105	123	110	121	119	180	95.8	194	116	223	210	434	221	296	167
Operating margin	24%	14%	32%	17%	29%	23%	23%	20%	22%	22%	30%	18%	31%	20%	35%	33%	49%	32%	38%	28%
Interest expense	12.9	13.0	12.2	13.8	15.3	16.4	41.5	35.8	35.7	35.3	31.6	27.8	24.9	22.0	19.6	18.4	17.0	17.3	15.3	15.8
Pre-tax income	170	55.4	104	101	137	86.4	81.1	76.5	88.5	85.6	146	67.4	170	93.2	205	194	428	203	747	152
Tax rate	-73%	17%	13%	30%	22%	13%	22%	20%	48%	22%	21%	-2%	26%	12%	21%	27%	19%	18%	21%	22%
Net income	293	46.1	89.7	70.5	107	75.0	63.5	61.4	45.6	66.4	114	69.0	127	82.2	163	141	348	167	591	119
Net margin	61%	10%	18%	15%	21%	16%	12%	11%	8%	12%	19%	13%	20%	15%	26%	22%	39%	24%	76%	20%
Diluted EPS	$2.48	$0.39	$0.76	$0.60	$0.90	$0.63	$0.53	$0.51	$0.38	$0.55	$0.95	$0.57	$1.04	$0.68	$1.35	$1.17	$2.94	$1.39	$4.98	$1.03
Operating cash flow	45.3	138	142	117	38.5	181	211	169	49.8	187	251	214	98.1	238	281	244	104	270	321	261
Capital expenditure	13.1	3.4	2.1	4.5	9.5	9.2	3.8	5.1	5.8	4.6	3.6	1.6	4.5	2.8	2.8	1.9	3.5	2.3	2.7	11.3
Free cash flow	32.3	134	140	112	29.0	172	207	164	44.0	183	247	212	93.6	236	279	242	100	267	318	249
Buybacks	30.0	120	5.3	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	75.0	75.0	75.0	75.0	200	626	500
Shares outstanding	117m	117m	117m	117m	117m	118m	118m	119m	119m	119m	120m	120m	120m	120m	120m	120m	120m	119m	115m	111m
Filing	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 31 March 2026, filed 7 May 2026: the filing.