PTC beats revenue estimates on resilient demand for design software

Reuters
11/06
PTC beats revenue estimates on resilient demand for design software

Nov 5 (Reuters) - Industrial software maker PTC PTC.O beat fourth-quarter revenue estimates on Wednesday, driven by resilient demand for its core industrial software and early traction from new AI-powered tools.

Companies seeking to prioritize digital transformation and adopt AI into their workflows have turned to PTC's software for designing, manufacturing and maintaining their products.

PTC, whose software is used across the aerospace and defense, automotive and medical technology sectors, has been rolling out AI capabilities in its product suite, including its flagship Creo design software and Windchill product management tools.

Separately, the company announced the sale of its Kepware industrial connectivity and ThingWorx Internet of Things businesses to TPG.

PTC will receive up to $725 million in total cash consideration from the deal, if certain thresholds are achieved.

It reported revenue of $893.8 million for the fourth quarter ended September 30, ahead of analysts' estimate of $750.8 million, according to data compiled by LSEG.

Adjusted profit per share came in at $3.47, also beating the estimate of $2.27 per share.

PTC forecast first-quarter revenue in the range of $600 million to $660 million, with the midpoint below the estimate of $637.2 million.

It also expects fiscal 2026 revenue to be between $2.65 billion and $2.92 billion, the midpoint slightly below the estimate of $2.80 billion.

(Reporting by Anhata Rooprai in Bengaluru and Juby Babu in Mexico City; Editing by Shilpi Majumdar)

((Anhata.Rooprai@thomsonreuters.com))

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