PTC Gearing Up to Report Q2 Earnings: Here's What to Expect

PTC Inc. PTC is scheduled to report second-quarter fiscal 2025 results on April 30, 2025, after market close.For the quarter, PTC anticipates revenues between $590 million and $620 million. Non-GAAP EPS is expected in the range of $1.30 to $1.50. The Zacks Consensus Estimate for revenues is pegged at $608.3 million, indicating an increase of 0.9% from the year-ago reported number. The consensus estimate for earnings is $1.38 per share, down 5.5% from a year ago, unchanged in the past seven days.The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while matching once. It delivered a trailing four-quarter average earnings surprise of 11.8%. In the past year, shares of PTC have declined 14.2% against Zacks Computer – Software industry’s growth of 1.5%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Image Source: Zacks Investment ResearchFactors Shaping PTC’s Upcoming Q2 ResultsPTC'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. Healthy adoption of its premium PLM product, Windchill software and Creo and other CAD tools among various sectors bodes well.PTC’s application lifecycle management (ALM) solution, powered by Codebeamer, gained momentum in the last reported quarter, driven by a collaboration with Microsoft and Volkswagen to launch the AI-driven Codebeamer Copilot. In February, PTC launched ServiceMax AI, a GenAI-powered assistant for field service management. It helps technicians by providing job-specific answers, automating documentation and scheduling, and offering predictive maintenance insights using asset history and service data. This might have positively impacted the top line.On March 27, 2025, PTC officially launched Codebeamer 3.0, the latest version of its ALM solution, aimed at helping companies accelerate product development, improve sustainability, ensure higher quality and maintain regulatory compliance. Codebeamer 3.0 introduces a modern branching method and scaled working sets that enhance collaboration across engineering teams.PTC Inc. Price and EPS Surprise PTC Inc. price-eps-surprise | PTC Inc. QuoteAdditionally, the company’s go-to-market realignment positioned it to better engage customers and capture new demand. These strategic actions likely translated into increased customer wins, higher deal volumes and stronger subscription growth, contributing positively to PTC’s second-quarter performance.Apart from these, the shift toward a subscription-based model and efforts to enhance operational discipline have been driving cash flow. For the fiscal second quarter, cash from operations and free cash flow are anticipated to be $274 million and $270 million, respectively.PTC expects constant currency ARR growth of around 9.5% for the fiscal second quarter, supported by its strong product portfolio, resilient subscription model and strategic investments.Uncertainty prevailing over the global macro environment, volatile foreign currency movements and tough selling environment are likely to have acted as headwinds. Also, stiff competition in the CAD space is expected to have weighed on margin performance.Key Recent DevelopmentsOn April 15, 2025, PTC unveiled two powerful additions to its Onshape platform — Onshape AI Advisor and Onshape Government. These innovative offerings highlight PTC's commitment to empowering engineers, designers and regulated organizations with powerful tools to streamline product development, enhance productivity and ensure regulatory compliance.On April 2, 2025, PTC acquired IncQuery Group, a provider of ALM and systems engineering services. The move enhances PTC's capabilities in ALM, PLM and systems engineering, helping global manufacturers streamline product development and improve collaboration across hardware and software teams.On March 25, 2025, PTC exhibited its latest innovation, Windchill AI, at Hannover Messe 2025, strengthening its position in AI-powered PLM. Windchill AI is an AI-powered assistant that leverages the vast amount of product data stored in Windchill, PTC’s flagship PLM solution. This advanced AI tool enables engineers and designers to access information faster, streamline decision-making and improve product development efficiency.What Our Model Says About PTCOur proven model predicts 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.PTC has an Earnings ESP of +1.71% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Other Stocks to ConsiderHere are some other stocks you may consider, as our model shows that these too have the right combination of elements to beat on earnings this season.Sprouts Farmers Market, Inc. SFM currently has an Earnings ESP of +0.44% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. Sprouts Farmers Market is scheduled to report quarterly earnings on April 30. The Zacks Consensus Estimate for SFM’s to-be-reported quarter’s earnings and revenues is pegged at $1.53 per share and $2.19 billion, respectively. Shares of SFM have gained 40.4% in the past six months.Qorvo, Inc. QRVO has an Earnings ESP of +3.42% and a Zacks Rank #2 at present. QRVO is scheduled to report quarterly figures on April 29. The Zacks Consensus Estimate for QRVO’s to-be-reported quarter’s earnings and revenues is pegged at $1.01 per share and $851.7 million, respectively. Shares of Qorvo have plunged 36.5% in the past six months.QUALCOMM Incorporated QCOM has an Earnings ESP of +0.86% and a Zacks Rank #2. It is scheduled to report quarterly figures on April 30. The Zacks Consensus Estimate for QCOM’s to-be-reported quarter’s earnings and revenues is pegged at $2.82 per share and $10640 million, respectively. Shares of Qualcomm have lost 15.6% in the past six months.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM): Free Stock Analysis Report Sprouts Farmers Market, Inc. (SFM): Free Stock Analysis Report PTC Inc. (PTC): Free Stock Analysis Report Qorvo, Inc. (QRVO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks