BMO Capital has cut its price target on PTC Inc. to $189.00 from $219.00 but left its Outperform rating intact following the software maker's first-quarter fiscal 2026 results. The research house described the quarter as "okay" and pointed to commentary about meaningful contracted deferred annual recurring revenue (ARR) as a factor that supports the customary back-half ramp to growth.
The firm noted several metrics that underpin its stance. PTC reported high profitability, with gross profit margins of 84.23%, and recorded 23.62% revenue growth over the trailing twelve months. Those operational results, BMO said, lend credibility to the company’s strategic emphasis on modernizing CAD, data management, and life-cycle solutions for manufacturers - areas the analyst believes present durable opportunities even amid broader market concerns around AI.
BMO also flagged valuation dynamics. It said PTC shares are trading at multi-year lows on free cash flow multiples. Management has indicated plans to repurchase stock equal to roughly 5% of the company's current market capitalization during the fiscal year, a move the research firm cited as supportive for shareholders.
Despite trimming the target price, BMO reiterated its Outperform view, citing a steady growth outlook and the share repurchase program as positive elements that mitigate near-term uncertainty. InvestingPro data referenced in the research indicates that PTC is trading below its Fair Value, with analyst targets spanning a range from $158 to $250.
PTC’s reported first-quarter fiscal 2026 results provide the context for these analyst reactions. The company posted earnings per share of $1.92, ahead of the consensus estimate of $1.55. Revenue came in at $686 million versus an expected $634.94 million. On a comparable basis excluding foreign exchange effects and divestitures, ARR grew 9.0%, which the company said sits at the high end of its guidance range. Free cash flow reached $267 million, aligning with PTC’s guidance of $265-270 million.
Oppenheimer, another sell-side firm mentioned in coverage, reaffirmed its Outperform rating on PTC and kept a $200.00 price target. Together, the analyst commentary and the company’s quarterly results frame a picture of operational strength paired with a more conservative near-term valuation outlook.
Summary: BMO lowered its PTC price target to $189 from $219 but maintained an Outperform rating, citing solid profitability, revenue growth, substantial contracted deferred ARR, and planned share repurchases. PTC beat EPS and revenue expectations for Q1 fiscal 2026, reported ARR growth of 9.0% ex-FX and divestitures, and delivered free cash flow in line with guidance.