PTC Inc

Solid Q2 Performance: PTC reported a 10% year-over-year growth in Annual Recurring Revenue (ARR) and a 13% increase in free cash flow. The company emphasized strong execution across its key areas, including Product Lifecycle Management (PLM), Application Lifecycle Management (ALM), Service Lifecycle Management (SLM), Computer-Aided Design (CAD), and Software-as-a-Service (SaaS).

Revised ARR Guidance: The forecast for ARR growth has been adjusted to a new range of 7% to 9%, down from the previous high end of 10%. This change is due to growing uncertainties in global trade dynamics and macroeconomic pressures that may impact customer buying behavior, potentially leading to smaller deal sizes or project delays.

Free Cash Flow Guidance Raised: Despite the revised ARR outlook, PTC raised the lower end of its free cash flow guidance for fiscal 2025 by $5 million to a range of $840 million to $850 million, demonstrating strong execution and profitability focus amid potential macro challenges.