Key Highlights

  • Fourth fiscal quarter Revenue was USD 673 million, down 25% from USD 894 million, while GAAP diluted EPS was USD 1.44 against USD 2.88 and non-GAAP EPS was USD 2.03 against USD 3.41.
  • ARR excluding divested businesses reached USD 2,508 million, up 8% as reported and 9.7% in constant currency, while total ARR as reported rose 1% after the Kepware and ThingWorx sale.
  • Fiscal 2026 GAAP EPS rose 47% to USD 8.93, helped by USD 463.9 million of gains on divestitures, while non-GAAP EPS was USD 8.24 versus USD 7.94.
  • Pending Acquisition by Schneider Electric, agreed on October 5, 2026, led the company to suspend quarterly earnings calls and stop providing guidance.

License Timing Drives the Steep Fourth-Quarter Revenue Decline

PTC (NASDAQ:PTC) reported fiscal fourth quarter and full-year 2026 results on November 4, 2026, for periods ended September 30, 2026. Quarterly revenue was USD 673 million against USD 894 million a year earlier, a 25% decline, or 24% in constant currency. License revenue fell to USD 267.0 million from USD 484.1 million, a drop of about USD 217 million (calculated) that accounts for most of the USD 220.5 million revenue decline (calculated). The company notes that revenue is affected by ASC 606, under which much of the value of an on-premises subscription is recognized when the software is made available, so a single quarter can swing sharply. Operating Margin was 32% versus 49%, and non-GAAP operating margin was 46% versus 59%.

ARR and Full-Year Profit Tell a Steadier Story

Annual run rate, which the company says is not distorted by that timing, is the cleaner gauge. ARR excluding the divested Kepware and ThingWorx businesses was USD 2,508 million, up 8%, while the as-reported figure including prior-year divested ARR grew 1%. Full-year revenue was USD 2,733 million versus USD 2,739 million. GAAP EPS for the year jumped 47% to USD 8.93 because of USD 463.9 million of gains on those two sales, which the reconciliation strips out of non-GAAP EPS of USD 8.24 versus USD 7.94. Full-year free Cash Flow was USD 873 million versus USD 857 million.

One-Off Cash Costs and the Schneider Electric Deal

Fourth-quarter free cash flow was USD 38 million against USD 100 million, and it absorbed about USD 24 million of divestiture costs and about USD 75 million of divestiture-related cash taxes that the company does not expect to recur. PTC (NASDAQ:PTC) agreed on October 5, 2026 to be acquired by Schneider Electric, and because of that it is suspending quarterly earnings calls and no longer providing quarterly or annual guidance. The release gives no price or closing date, so neither is covered here. The company is a global software provider for industrial and Manufacturing companies, with over 7,000 employees and more than 30,000 customers.

Where Things Stand

The revenue drop looks driven mainly by license timing rather than a collapse in demand. PTC (NASDAQ:PTC) booked far less up-front license revenue than a year earlier, while run-rate value excluding divested units grew 8% and free cash flow was hit by one-off divestiture items. The pending Schneider Electric transaction now frames the story: with calls and guidance suspended, the next hard data points are regulatory filings and any update on the deal timetable.