PTC Beats Q4 2026 Estimates as ARR Rises 8% Before Schneider Takeover
As seen on the 24/7 Wall St. homepage on November 4, 2026.
With guidance and earnings calls suspended ahead of Schneider Electric's takeover, annual recurring revenue excluding divested units is the only gauge left, and it rose 8% to $2.51 billion. The 25% revenue drop reflects ASC 606 license timing, and both lines still cleared estimates.
Continue ReadingShow less
PTC cleared Wall Street's bar on both lines in its fiscal fourth quarter of 2026, reporting adjusted non-GAAP EPS of $2.03, beating the consensus estimate. Revenue of $673.25 million also came in above expectations, a modest but clean sweep heading into the company's final quarters as a standalone public company.
The headline revenue figure came with an important asterisk. The 25% year-over-year decline reflects the mechanics of ASC 606 accounting, under which on-premises subscription license revenue is recognized in a lump sum at contract inception, causing sharp swings from one period to the next. License revenue fell to $267.0 million from $484.1 million in the same quarter a year earlier, a drop driven largely by timing.
With guidance and earnings calls now suspended ahead of Schneider Electric's $22.6 billion acquisition of PTC, announced October 5, 2026, annual recurring revenue has become the single most useful gauge of the business. ARR excluding divested units, specifically Kepware and ThingWorx, which were sold in the second quarter of fiscal 2026, rose 8% to $2.51 billion, or 9.7% in constant currency. That figure is what investors are left watching as the deal moves toward close.
Sponsored
The quarter's cash flow numbers were weighed down by deal-related costs. Operating cash flow fell 55% year over year to $47.3 million, and free cash flow dropped 63% to $37.7 million, with roughly $24 million in divestiture-related costs and about $75 million in divestiture-related cash taxes flowing out in the period. PTC noted those items are not expected to recur.
For the full fiscal year 2026, PTC posted non-GAAP EPS of $8.24 on revenue of $2.73 billion. The company also repurchased $1,624.9 million of its common stock during the year, a notable capital return even as the pending acquisition constrains forward visibility. Until Schneider's deal closes, ARR growth and deal timing are the only metrics that will move the needle for investors still holding shares.
Sources
Mentioned: PTC