PTC Inc. Just Beat EPS By 46%: Here's What Analysts Think Will Happen Next

A week ago, PTC Inc. (NASDAQ:PTC) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 10% higher than the analysts had forecast, at US$644m, while EPS were US$1.17 beating analyst models by 46%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on PTC after the latest results.

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Taking into account the latest results, the most recent consensus for PTC from 18 analysts is for revenues of US$2.80b in 2026. If met, it would imply a meaningful 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 27% to US$5.42. In the lead-up to this report, the analysts had been modelling revenues of US$2.73b and earnings per share (EPS) of US$4.86 in 2026. So it seems there's been a definite increase in optimism about PTC's future following the latest results, with a solid gain to the earnings per share forecasts in particular.

See our latest analysis for PTC

With these upgrades, we're not surprised to see that the analysts have lifted their price target 14% to US$225per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values PTC at US$250 per share, while the most bearish prices it at US$190. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the PTC's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of PTC'shistorical trends, as the 10% annualised revenue growth to the end of 2026 is roughly in line with the 9.8% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 13% per year. So it's pretty clear that PTC is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards PTC following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple PTC analysts - going out to 2027, and you can see them free on our platform here.

You can also see whether PTC is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.