Key Highlights

  • Quarterly sales slid to USD 673 million from USD 894 million, a 25% decline. GAAP diluted EPS was USD 1.44 against USD 2.88, and non-GAAP EPS was USD 2.03 versus USD 3.41.
  • Annual run rate excluding divested businesses reached USD 2,508 million, up 8% as reported and 9.7% in constant currency, while total ARR as reported grew only 1% after the Kepware and ThingWorx disposals.
  • Full-year GAAP EPS climbed 47% to USD 8.93, lifted by USD 463.9 million of divestiture gains, whereas non-GAAP EPS moved from USD 7.94 to USD 8.24.
  • The pending Schneider Electric acquisition, agreed October 5, 2026, has led the company to pause quarterly earnings calls and withdraw quarterly and annual guidance.

Software License Timing Behind the Sharp Quarterly Drop

PTC (NASDAQ:PTC) published fiscal fourth-quarter and full-year 2026 figures on November 4, 2026, covering periods that ended September 30, 2026. Revenue of USD 673 million compared with USD 894 million a year earlier, a 25% fall, or 24% when currency effects are removed. Most of the shortfall sat in license income, which dropped to USD 267.0 million from USD 484.1 million, a reduction of roughly USD 217 million (calculated) against a total revenue decline of USD 220.5 million (calculated). The company says accounting under ASC 606 recognizes much of an on-premises subscription's value once the software becomes available, so a single quarter can swing sharply. Operating Margin narrowed to 32% from 49%, while non-GAAP operating margin moved to 46% from 59%.

Recurring Revenue Metric and Full-Year Earnings Give a Steadier Picture

Annual run rate, a measure the company argues is not skewed by that quarterly timing, offers a calmer read. Excluding the Kepware and ThingWorx units that were sold, ARR reached USD 2,508 million, rising 8%, whereas the as-reported total carrying prior-year divested ARR increased only 1%. Full-year revenue came in at USD 2,733 million against USD 2,739 million. GAAP EPS for the year surged 47% to USD 8.93 on USD 463.9 million of gains from those two divestitures, and the reconciliation removes those gains to arrive at non-GAAP EPS of USD 8.24 compared with USD 7.94. Full-year free Cash Flow was USD 873 million, versus USD 857 million a year earlier.

Divestiture Costs, Cash Taxes and the Schneider Electric Agreement

Fourth-quarter free cash flow dropped to USD 38 million from USD 100 million, absorbing roughly USD 24 million of divestiture costs and about USD 75 million of divestiture-related cash taxes that management does not anticipate repeating. On October 5, 2026, PTC (NASDAQ:PTC) agreed to be acquired by Schneider Electric, which has led it to halt quarterly earnings conference calls and stop issuing quarterly and annual guidance. No purchase price or closing timetable appears in the release, so neither is reported here. The global software provider serves industrial and Manufacturing companies, employs more than 7,000 people and counts over 30,000 customers.

Where Things Stand

Partly. The reported Top Line fell 25% in the quarter, driven mainly by license timing rather than a clear loss of demand, while ARR excluding divested units still rose 8%. PTC (NASDAQ:PTC) booked far less up-front license revenue than a year earlier, and free cash flow absorbed one-off divestiture items. With the Schneider Electric deal pending and calls and guidance suspended, the next concrete markers are regulatory filings and any update on timing.