PTC (PTC) provided bullish fiscal 2027 comments indicating potential acceleration of annual recurring revenue growth after it managed to deliver several quarters of solid demand capture, rep productivity, and renewal rates, Oppenheimer said in a note emailed Thursday with a review of the company's fiscal Q2 results.
The note highlighted the company delivered Q2 annual recurring revenue growth, excluding foreign exchange effects and divestitures, at the high-end of its outlook, as well as a free cash flow beat.
Also, PTC's management reaffirmed fiscal 2026 growth, excluding forex and divestitures, and free cash flow outlook of 7.5% to 9.5% and about $850 million, respectively, which de-risks the lower-end of its H2 guidance, the note said.
Meanwhile, the company bought back $625 million worth of shares during Q2, lifted its fiscal 2026 repurchase target to $1.225 billion to 1.325 billion, up from $1.1 billion to 1.3 billion previously, and issued a fresh $2 billion authorization for fiscal 2027 and 2028, the investment firm said.
Oppenheimer reaffirmed PTC's outperform rating and $200 price target, citing the company's "solid results and improving outlook."
PTC shares were up past 8% in Thursday late morning trading.
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