PTC Inc. is scheduled to report third-quarter fiscal 2025 results on July 30, after market close. For the quarter, PTC anticipates revenues between $560 million and $600 million. Non-GAAP EPS is projected in the range of $1.05 to $1.30. The Zacks Consensus Estimate for revenues is pegged at $582.4 million, indicating an increase of 12.3% from the year-ago reported number. The consensus estimate for earnings is $1.22 per share, up 24.5% from a year ago, unchanged in the past seven days. The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters. It delivered a trailing four-quarter average earnings surprise of 15.4%. In the past year, shares of PTC have soared 15.4% compared with the Zacks Computer – Software industry’s growth of 23%.\n\nFactors Shaping PTC’s Upcoming Q3 Results\nPTC's core business segments, product lifecycle management (PLM) and computer-aided design (CAD) solutions, continue to be major revenue drivers and are likely to have positively impacted its performance in the to-be-reported quarter. Generative AI initiatives and product portfolio enhancements bode well. The company advanced its product portfolio with generative AI capabilities across PLM, Application Lifecycle Management (ALM), Service Lifecycle Management (SLM) and CAD, including Windchill AI, Codebeamer 3.0, ServiceMax AI, and Onshape AI Advisor. On the last earnings call, management highlighted that generative AI adoption is expected to grow steadily over the next 12-24 months, with customers increasingly recognizing the importance of product data foundations for AI applications.\n\nPTC Inc. Price and EPS Surprise\nApart from these, the shift toward a subscription-based model and efforts to enhance operational discipline have been driving cash flow. For the fiscal third quarter, cash from operations is expected to be in the range of $234-$239 million, while free cash flow is anticipated to be between $230 million and $235 million, after factoring in around $4 million of cash outflows tied to the company’s go-to-market restructuring efforts. The company’s go-to-market realignment positioned it to better engage customers and capture new demand. For the fiscal third quarter, PTC expects $30 million to $50 million of sequential net annualized recurring revenues (ARR) growth.\n\nHowever, hurt by global trade volatility and customer caution, PTC narrowed its ARR outlook to 7-9% from 9-10% for fiscal 2025. Moreover, adverse foreign currency exchange rates and stiff competition in the CAD market are likely to have acted as headwinds.\n\nKey Recent Developments\nOn July 8, 2025, PTC announced that Nimble, a top player in AI robotics and autonomous logistics, is upgrading its design and operations systems by switching from its old CAD, PDM, PLM and QMS tools to PTC’s cloud-based solutions. Nimble will now use PTC’s Onshape platform for CAD and PDM, along with the Arena platform for PLM and QMS, streamlining its processes with these modern, cloud-native technologies.\n\nOn June 24, 2025, PTC introduced a transformative advancement for its Arena PLM and QMS (Quality Management System) solutions — the Arena Supply Chain Intelligence (SCI) offering. The state-of-the-art solution embeds AI-driven component risk monitoring directly into the Arena PLM/QMS environment, enabling real-time visibility and smarter sourcing decisions from the earliest stages of product design.\n\nOn June 12, 2025, PTC introduced model-based definition (MBD) capabilities within its Onshape platform—a fully cloud-native CAD and PDM solution. This initiative marks the first MBD offering of its kind in a cloud-native environment, designed to streamline product development by embedding product manufacturing information (PMI) directly into 3D models. Currently available in an early visibility program with select customers, this new capability is expected to be generally available by the end of 2025.\n\nOn June 4, 2025, PTC released Creo 12, the latest version of its CAD software, featuring hundreds of enhancements to improve design, simulation and manufacturing, helping teams work faster and collaborate more efficiently.\n\nWhat Our Model Says About PTC\nOur proven model does not predict an earnings beat for PTC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. PTC has an Earnings ESP of -2.57% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.\n\nStocks to Consider\nHere are stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.\n\nEmerson Electric Co. EMR, expected to release earnings on Aug. 6, currently has an Earnings ESP of +0.46% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.\nThe consensus estimate for Emerson Electric’s earnings for the third quarter of fiscal 2025 is pegged at $1.51 per share, indicating year-over-year growth of 5.6%. EMR has a trailing four-quarter average surprise of 3.4%.\n\nIllinois Tool Works Inc. ITW, slated to release second-quarter 2025 results on July 30, has an Earnings ESP of +1.19% and a Zacks Rank of 3 at present.\nThe Zacks Consensus Estimate for Illinois Tool Works’ second-quarter 2025 earnings is pegged at $2.56 per share, suggesting a year-over-year rise of 0.8%. ITW has a trailing four-quarter average surprise of 3%.\n\nQUALCOMM Incorporated QCOM has an Earnings ESP of +0.60% and a Zacks Rank #3. It is scheduled to report quarterly figures on July 30. The Zacks Consensus Estimate for QCOM’s to-be-reported quarter’s earnings and revenues is pegged at $2.68 per share and $10.36 billion, respectively. Shares of Qualcomm have lost 8.8% in the past year.

PTC to Announce Q3 Earnings: Here's What You Should Know

PTC Inc. is scheduled to report third-quarter fiscal 2025 results on July 30, projecting revenues between $560 million and $600 million and non-GAAP EPS in the range of $1.05 to $1.30. The company has consistently exceeded Zacks Consensus Estimates in recent quarters, with a trailing four-quarter average earnings surprise of 15.4%. Recent developments include AI-driven upgrades to its PLM and CAD solutions, a new Arena Supply Chain Intelligence offering, and the introduction of model-based definition (MBD) capabilities in Onshape. The company also announced a partnership with Nimble to adopt its cloud-based solutions. Meanwhile, stocks like Emerson Electric and Illinois Tool Works are highlighted as potential earnings beat candidates.