PTC Inc. (PTC) Reports Results for Q3; Barclays Lifts PT to $233

With strong share price gains and significant hedge fund interest, PTC Inc. (NASDAQ:PTC) secures a spot on our list of the 11 Hot Software Stocks to Buy Now.

On July 31, 2025, Barclays lifted its price target on PTC Inc. (NASDAQ:PTC) from $203 to $233, maintaining an ‘Overweight’ rating. This price revision came a day after the company’s earnings release for Q3.

PTC Inc. (NASDAQ:PTC)’s EPS of $1.64 exceeded expectations, while ARR reached $2.37 billion, thanks to 9.3% constant currency growth. Meanwhile, free cash flow hit $242 million, representing a 14% YoY increase. The strong performance was attributed to progress in its go-to-market transformation, steady pipeline creation, and stronger collaboration across teams.

Additionally, during the quarter, PTC Inc. (NASDAQ:PTC) released Creo 12, which features AI-driven generative design, and Arena Supply Chain Intelligence for AI-enabled risk monitoring. It also finalized deals with med-tech, automotive, and aerospace companies. Furthermore, it’s progressing well within “physical AI” with its ongoing collaboration with NVIDIA.

Looking ahead, PTC Inc. (NASDAQ:PTC) expects full-year ARR growth of 8%-9%. It also raised the low end of free cash flow guidance to roughly $850 million.

Focusing on product lifecycle management, computer-aided design, and industrial IoT, PTC Inc. (NASDAQ:PTC) delivers software solutions to help industrial and manufacturing companies increase the efficiency of their product design, manufacturing, operations, and service. It is included in our list of the hot stocks to buy.

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