PTC Inc

Shares of enterprise software companies, including Braze, Procore Technologies, PTC, Samsara, and Zeta Global, traded up in the afternoon session after quarterly earnings and upbeat commentary signaled that artificial intelligence is driving growth rather than threatening legacy business models. The sector-wide rally was fueled by stronger-than-expected results from major tech firms, with Salesforce, CrowdStrike, and Okta highlighting AI as a catalyst for adoption and monetization. Salesforce's Agentforce reached $1.5 billion in annual recurring revenue, and its Slackbot surpassed 1 million active users within five months. CrowdStrike CEO George Kurtz attributed momentum to AI expanding the attack surface, while Okta reported that AI-focused identity offerings drove about 30% of new bookings and increased average contract values by roughly 40%. Among the movers, Braze jumped 10%, Procore Technologies rose 6.4%, PTC gained 4.4%, Samsara climbed 5.5%, and Zeta Global advanced 6.9%, with Salesforce surging 20%.

The 180 MW Phase II portion of the Millers Branch Solar Facility in Haskell County, Texas has achieved commercial operation. The capacity was contracted through Sustainability Roundtable, Inc's Net Zero Consortium for Buyers by Cisco, Juniper Networks (now part of Hewlett Packard Enterprise), Bio-Rad Laboratories, Cadence Design Systems, IDEXX Laboratories, Inc., PTC, and a large healthcare company, which signed an aggregated virtual power purchase agreement with Southern Power Company for the renewable energy credits the project generates. Cisco serves as the anchor buyer for a 50 MW portion, Juniper Networks for 40 MW, Bio-Rad, Cadence, IDEXX, and the healthcare company each for 20 MW, and PTC for 10 MW. This Phase II follows the 200 MW Phase I that reached operation in December 2025 with Thermo Fisher Scientific as sole offtaker, and together with later phases the consortium has surpassed a gigawatt of new renewable energy development. The NZCB is now working toward its Next Gigawatt of Advanced Market Commitments, aiming to bring more than 2 GW of new clean energy online through over $1.5 billion in long-term procurements across North America, Europe, and India.

Shares of Zscaler, Shopify, and PTC rose sharply in afternoon trading as a drop in Treasury yields and concerns over the artificial intelligence investment cycle improved market appetite for enterprise software. Zscaler gained 3.3%, Shopify added 2.8%, and PTC climbed 2.5%, benefiting from a broader rotation out of semiconductor stocks and into software names. The decline in interest rates provided a macro tailwind for long-duration Software-as-a-Service valuations, while portfolio managers reallocated capital away from chipmakers after the top 25 semiconductor and hardware companies reached a combined market capitalization of approximately $22 trillion. Zscaler remains down 31.4% year-to-date and trades 55% below its 52-week high of $336.27 from November 2025.

PTC stock is in focus after the company joined Rambam Health Care Campus and EOS GmbH to build a Digital Implant Engineering Center in Haifa, Israel, using 3D printing and PTC's Creo CAD software. The collaboration news comes after a mixed stretch for PTC's stock, with a 1-day share price return of 4.84% but a year-to-date share price decline of 30.32%, and a 1-year total shareholder return down 42.05%. PTC's most followed valuation narrative places fair value at $179.25, well above the recent $118.52 close, suggesting the stock is 34% undervalued. The transition to SaaS and subscription-based models is generating more predictable, recurring revenues and is expected to deliver natural operating leverage, with non-GAAP operating expenses growing at half the rate of ARR, which should allow free cash flow growth to outpace ARR growth and eventually increase operating margins.

The Alliance for OpenUSD has added ByteDance, Huawei, Physicl, and Unity as General Members, expanding its reach into gaming, consumer XR platforms, and large-scale enterprise digital transformation. The organization has also begun the ISO certification process for Core Specification 1.1, the first step toward international standardization, and launched a GitHub repository to give developers direct input into the specification's evolution. OpenUSD is emerging as the 3D data layer for agentic AI workflows, with early implementations from Cesium, PTC, and NVIDIA demonstrating how AI agents can understand, navigate, and modify 3D environments built on the Core Specification. AOUSD and member companies including Pixar, NVIDIA, Autodesk, and Epic Games will present sessions at SIGGRAPH 2026 in Los Angeles from July 19 to 23.

NVIDIA announced that its Agent Toolkit now includes Omniverse libraries, a collection of software components that give AI agents tools to add physical AI capabilities to existing applications and prepare 3D content for simulation. The new libraries—ovrtx for RTX sensor simulation, ovphysx for GPU-accelerated physics, and CAD-to-SimReady skills for converting CAD data into simulation-ready assets—are openly available on GitHub. Software makers including SideFX and PTC are integrating these libraries into their 3D applications, with support for cloud and local AI systems ranging from NVIDIA RTX Spark to NVIDIA DGX Station. A new blueprint for integrating Omniverse libraries in Blender is also available, demonstrating how agent-ready simulation capabilities can be added to existing 3D tools while keeping creators in control.

StockStory highlights Freshworks and PTC as two software stocks with promising prospects while recommending investors avoid Five9. Freshworks, with a market cap of $2.93 billion, is favored for its 25.8% annual revenue growth over five years, 85% gross margin, and 25.7% free cash flow margin. PTC, valued at $14.28 billion, is noted for 21% average billings growth, an 84.7% gross margin, and a 38.7% operating margin. In contrast, Five9, with a $1.90 billion market cap, is flagged for subpar 9.4% billings growth, slowing demand, and a lower 55.5% gross margin.

PTC shares have fallen 26.7% over the past six months to $122.35, but the company's recent performance highlights several strengths. Billings reached $838 million in the first quarter, with year-on-year growth averaging 21% over the last four quarters, signaling robust customer demand and enhanced liquidity. The company's gross margin averaged an elite 84.7% over the past year and has improved by 4.9 percentage points over the last two years, reflecting its asset-light model and strong pricing power. Additionally, PTC posted an average GAAP operating margin of 38.7% over the last year, underscoring its profitability. The stock now trades at 5.5 times forward price-to-sales.

PTC has been named the Official Engine Design Software Partner of Toyota Racing Development (TRD USA). The partnership will see TRD use PTC's Creo CAD and Windchill PLM solutions to enhance engineering capabilities and accelerate development of high-performance engines for motorsport programs including NASCAR and off-road racing. The agreement deepens a long-standing collaboration, enabling TRD to streamline its design-to-production process and improve collaboration while reducing development complexity. PTC's technology provides a robust data foundation to support TRD's transition toward data-driven innovation and maintain competitiveness across multiple racing generations.

StockStory identifies Lennar as a risky S&P 500 stock to sell, while naming PTC and AbbVie as promising stocks to watch. Lennar faces declining demand with a 9.2% average backlog drop over two years and an 8.9% annual earnings per share decline over five years, despite revenue growth. PTC shows strength with 21% average billings growth, an 84.7% gross margin, and a 38.7% operating margin. AbbVie benefits from a $62.82 billion revenue base, strong free cash flow, and a 17.5% return on invested capital.

StockStory highlights PTC as a stock to buy, citing 21% billings growth over the past year, an 84.7% gross margin, and a 38.7% operating margin. The firm flags PVH and MarketAxess as stocks facing headwinds, pointing to PVH’s weak constant currency growth and 6.4% free cash flow margin, and MarketAxess’s 4% annual revenue growth and flat earnings per share over five years. PTC trades at $112.76 per share, PVH at $72.13, and MarketAxess at $109.07.

PTC Inc. launched PTC Orbit, a cloud-native system of intelligence designed to bridge the gap between product design and real-world asset performance. The platform unifies data from siloed enterprise systems including PLM, ERP, CRM, IoT, EAM, and FSM to create a single accurate record for each asset, maintaining visibility long after a product has shipped. Built with an AI-first approach, PTC Orbit uses AI to detect service patterns, identify failure trends, and calculate asset health scores, while its AI-powered interface allows teams across engineering, quality, and service departments to dynamically query asset data. The solution is a central component of PTC's Intelligent Product Lifecycle vision, aiming to help manufacturers move from reactive operations to insight-led decision-making and drive aftermarket revenue.

StockStory recommends watching mid-cap stocks PTC and UL Solutions while advising investors to sell Somnigroup. PTC, a software provider for manufacturers, reported average billings growth of 21% over the last year, a gross margin of 84.7%, and an operating margin of 38.7%, with shares trading at $113.87. UL Solutions, a testing and certification company, posted annual EPS growth of 16.1%, expanded its free cash flow margin by 5.3 percentage points over five years, and trades at $90.91 per share. Somnigroup, the bedding manufacturer behind Tempur-Pedic and Sealy, saw 14.5% annual revenue growth over five years, shrinking returns on capital, and no expected free cash flow margin growth, with shares at $75.12.