PTC reported its fiscal second quarter results ended March 31, 2025, on April 30, 2025, demonstrating solid Annual Run Rate (ARR) and cash flow performance. ARR grew 10% year-over-year to $2,290 million, or 10% on a constant currency basis. Operating cash flow increased by 12% to $281 million, and free cash flow rose 13% to $279 million compared to the prior year.
Total revenue for Q2 2025 was $636 million, a 6% increase year-over-year, or 8% on a constant currency basis, surpassing analyst estimates. GAAP earnings per share (EPS) for the quarter was $1.35, up 42% from the prior year, and non-GAAP EPS was $1.79, a 23% increase, both exceeding expectations.
Despite the strong Q2 performance, PTC adjusted its full fiscal year 2025 constant currency ARR growth guidance to a range of 7% to 9%, a moderation from the prior 9% to 10% range. This adjustment was made to account for growing uncertainty related to global trade dynamics and macroeconomic pressures that intensified since early April 2025.
Conversely, PTC raised the low end of its fiscal 2025 free cash flow guidance by $5 million, now projecting a range of $840 million to $850 million. The company also raised its full-year GAAP EPS guidance to $3.78 to $4.73 and non-GAAP EPS guidance to $5.80 to $6.55, reflecting strong operational discipline and confidence in cash generation.
For the third fiscal quarter of 2025, PTC expects constant currency ARR growth of 8.5% to 9.5% and free cash flow between $230 million and $235 million. The company continued its capital allocation strategy, repurchasing $75 million worth of its stock in Q2 2025 and retiring $500 million of senior notes due in Q2 2025.
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