PTC (PTC) Q3 FY2026 earnings: revenue $600 million, down 6.8% on the year

PTC Inc. (PTC) reported revenue of $600 million for Q3 FY2026, the quarter ended 30 June 2026, down 6.8% on the same quarter a year earlier. Net income was $119 million, down 16.0% on the year, and diluted earnings per share $1.03. The figures are the company's own, from the 10-Q it filed with the SEC on 31 July 2026.

Revenue

$600 million

-6.8% on the year · -22.5% on the quarter

Q4 FY2024Q3 FY2026

Operating margin

27.7%

32.6% a year earlier

Q4 FY2024Q3 FY2026

Net income

$119 million

-16.0% on the year · -79.9% on the quarter

Q4 FY2024Q3 FY2026

Diluted EPS

$1.03

-12.0% on the year · -79.3% on the quarter

Q4 FY2024Q3 FY2026

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

What management said

Guidance figures: 5 raised, 3 lowered, 4 narrowed, 7 new, 6 kept.

Constant currency ARR grew 9.1%: Constant currency ARR excluding divested businesses was $2,448 million against $2,245 million, up 9.1%, above the 8% to 9% Q3 guidance range. As reported ARR excluding divested businesses rose 7% to $2,412 million.
Revenue fell 7% as reported: Revenue was $600.0 million against $643.9 million, down 7%. Management said revenue declined 8% year over year on a constant currency basis.
Free cash flow up 3% in quarter: Free cash flow was $249.3 million, up 3% from $242.0 million and above the $240 million to $245 million Q3 guidance. Operating cash flow was $260.6 million, up 7%.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Revenue	600	774	644	-22.5%	-6.8%
Cost of revenue	110	114	110	-3.6%	-0.4%
Gross profit	490	661	534	-25.8%	-8.1%
Gross margin	81.7%	85.3%	82.9%
Research and development	116	124	117	-6.8%	-0.8%
Operating income	167	296	210	-43.7%	-20.6%
Operating margin	27.7%	38.2%	32.6%
Interest expense	15.8	15.3	18.4	+2.9%	-14.3%
Pre-tax income	152	747	194	-79.6%	-21.3%
Income tax	33.7	156	52.3	-78.4%	-35.7%
Effective tax rate	22.1%	20.9%	27.0%
Net income	119	591	141	-79.9%	-16.0%
Net margin	19.8%	76.3%	21.9%
Diluted EPS	$1.03	$4.98	$1.17	-79.3%	-12.0%

$ 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	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Operating cash flow	261	321	244	-18.8%	+6.8%
Capital expenditure	11.3	2.7	1.9	+322.5%	+497.8%
Free cash flow	249	318	242	-21.6%	+3.0%
Free cash flow margin	41.6%	41.1%	37.6%
Cash from investing	-55.2	534	-35.2
Cash from financing	-290	-623	-250
Depreciation and amortisation	24.2	24.7	25.5	-2.0%	-5.3%
Share-based compensation	59.4	68.6	54.0	-13.4%	+9.9%
Buybacks	500	626	75.0	-20.1%	+566.8%
Diluted shares, weighted	115m	119m	120m	-3.0%	-4.6%
Shares outstanding at period end	111m	115m	120m	-4.1%	-7.6%

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	Q3 FY2026	Q2 FY2026	Q3 FY2025	On the quarter	On the year
Shareholders' equity	3,470	3,860	3,513	-10.1%	-1.2%
Debt	1,423	1,198	1,233	+18.8%	+15.4%
Operating lease liabilities	160	160	153	+0.0%	+4.6%
Other liabilities	1,460	1,319	1,330	+10.7%	+9.8%
Total liabilities and equity	6,514	6,537	6,229	-0.4%	+4.6%
Fixed assets	62.8	54.7	65.1	+14.8%	-3.5%
Goodwill	3,398	3,403	3,497	-0.1%	-2.8%
Intangible assets	766	783	845	-2.2%	-9.4%
Cash and equivalents	351	439	199	-20.0%	+76.3%
Receivables	824	853	713	-3.3%	+15.6%
Other assets	1,111	1,005	910	+10.6%	+22.1%
Total assets	6,514	6,537	6,229	-0.4%	+4.6%

Questions

What was PTC's revenue in Q3 FY2026?

PTC (PTC) reported revenue of $600 million for Q3 FY2026, the quarter ended 30 June 2026, down 6.8% on the same quarter a year earlier.

How much did PTC earn in Q3 FY2026?

Net income for Q3 FY2026 was $119 million, down 16.0% on the year, and diluted earnings per share $1.03.

When did PTC report Q3 FY2026 results?

PTC filed its 10-Q for the quarter ended 30 June 2026 with the SEC on 31 July 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 30 June 2026, filed 31 July 2026: the filing.