PTC Q4 ARR Rises 8% Ex-Divestitures; Suspends Guidance Amid Schneider Deal
PTC closed fiscal 2026 with solid underlying ARR growth after stripping recent divestitures, then stepped back from guidance and earnings calls because of its pending sale to Schneider Electric.
Boston-based PTC reported fourth-quarter as-reported ARR excluding divested businesses of $2.508 billion, up 8% from $2.320 billion a year earlier, according to its earnings release filed with an 8-K Wednesday. Constant-currency ARR excluding divestitures was $2.545 billion, up 9.7%. GAAP revenue was $673 million, down 25% from $894 million, reflecting ASC 606 timing and the Kepware and ThingWorx divestitures. GAAP EPS was $1.44, versus $2.88; non-GAAP EPS was $2.03, versus $3.41.
Operating cash flow in the quarter was $47 million, and free cash flow was $38 million, both down sharply. Cash flow included an estimated $24 million of divestiture-related costs and an estimated $75 million of divestiture-related cash taxes, the company said.
Full-year and deal context
For fiscal 2026, revenue was $2.733 billion, essentially flat with $2.739 billion. GAAP EPS rose 47% to $8.93. Non-GAAP EPS was $8.24, up 4%. Free cash flow was $873 million, up 2%, after divestiture-related costs and taxes.
As announced Oct. 5, 2026, PTC entered a definitive agreement to be acquired by Schneider Electric. In light of the pending transaction, PTC is suspending quarterly earnings conference calls and is no longer providing quarterly financial guidance, the company said.
Reported ARR rose only 1% year over year before the divestiture adjustment, which is why management emphasizes the ex-Kepware and ThingWorx view. Cash flow was the noisier line: divestiture costs and taxes masked an otherwise solid full-year free-cash-flow print of $873 million.
Until the Schneider Electric transaction closes or breaks, incremental product commentary matters less than ARR quality and cash conversion. Suspending guidance is standard for pending take-privates and takeovers; it also removes a near-term catalyst calendar that active traders usually relied on.
Why it matters
With a takeout pending, PTC’s print is mainly a confirmation tape for ARR health ex-divestitures and cash generation—not a standalone valuation reset. The 8% to 9.7% ARR growth ex-divestitures and $873 million of free cash flow are the figures deal-watchers will use to judge whether the Schneider premium still looks grounded.
By the numbers
- Q4 ARR ex-divestitures: $2.508 billion, up 8%
- Constant-currency ARR ex-divestitures: up 9.7%
- Q4 revenue: $673 million
- Q4 non-GAAP EPS: $2.03
- FY2026 free cash flow: $873 million
- FY2026 GAAP EPS: $8.93
Sources
- PTC Form 8-K with fourth-quarter and full-year fiscal 2026 results, filed Nov. 4, 2026 (accession 0001193125-26-447186)
This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.
Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.