PTC Brings Cloud-Native Model-Based Definition to Onshape

PTC Inc. PTC recently introduced model-based definition (MBD) capabilities within its Onshape platform—a fully cloud-native CAD and PDM solution. This initiative marks the first MBD offering of its kind in a cloud-native environment, designed to streamline product development by embedding product manufacturing information (PMI) directly into 3D models. Currently available in an early visibility program with select customers, this new capability is expected to be generally available by the end of 2025. PTC will showcase these innovations at the Paris Air Show from June 16–19 in collaboration with Aura Aero, a pioneer in sustainable aviation.

MBD is a method of creating a comprehensive digital product definition within a 3D CAD model. Previously, manufacturing teams relied on 2D drawings to understand a product's design intent—dimensions, tolerances, annotations, materials and finishes. MBD eliminates the need for these separate 2D drawings by embedding all relevant PMI directly into the 3D model itself.

This not only reduces miscommunication but also enables a seamless digital thread across the entire product lifecycle, from design and simulation to manufacturing and inspection. Despite the widespread adoption of 3D CAD tools, many manufacturing workflows still depend heavily on 2D drawings for critical information. 

This reliance on outdated methods not only slows down the process but also increases the risk of human error. The interpretation of 2D drawings introduces a manual layer in a digital workflow, creating inefficiencies and raising the likelihood of design and production mismatches.

PTC Banks on Portfolio & Onshape Innovations, Forex Woes Ail

PTC is poised to gain from its strength in the product portfolio. The company’s solutions aid industrial enterprises in enhancing operational efficiency, accelerating product and service innovation and boosting workforce productivity. The growing clout of the company’s major technology platforms, including 3D modeling (CAD) offering Creo, lifecycle management (PLM) solution Windchill, data orchestration (IIoT) offering ThingWorx, and experience creation (AR) product Vuforia Studio, is expected to drive the top line.

Generative AI initiatives are additional tailwinds for the company’s long-term success. PTC advanced its product portfolio with generative AI capabilities across PLM, ALM, SLM and CAD, including Windchill AI, Codebeamer 3.0, ServiceMax AI and Onshape AI Advisor. 

In April 2025, PTC unveiled two powerful additions to its Onshape platform — Onshape AI Advisor and Onshape Government. These innovative offerings highlight PTC's commitment to empowering engineers, designers and regulated organizations with powerful tools to streamline product development, enhance productivity and ensure regulatory compliance. By fusing gen AI and compliance-grade infrastructure into its cloud-native CAD and PDM ecosystem, it continues to accelerate innovation across industries.

PTC Inc. Price and Consensus

PTC Inc. price-consensus-chart | PTC Inc. Quote

Besides commercial and government use, Onshape continues to make a huge impact in education as well. More than 1.5 million new signups per year come from students and educators. Top institutions such as Ohio State University, Duke University and the University of Southern California have incorporated Onshape into their engineering curricula, preparing the next generation of designers for a cloud-native, AI-enabled future.

Also, in September 2024, PTC signed an agreement with Amazon Web Services to grow its Onshape solution. This partnership focuses on enhancing Onshape's features, increasing customer adoption and advancing AI efforts, all to help designers and engineers develop high-quality products faster and more efficiently.

Nonetheless, PTC continues to face headwinds as the lion’s share of its fiscal 2024 revenue came from international markets and a strong U.S. dollar is expected to hurt growth. Ongoing tariff issues and weak global conditions add pressure. Due to this, PTC cut its ARR growth forecast for fiscal 2025 to 7–9%, lowering the high end from 10%, citing deal delays and rising uncertainty.

PTC’s Zacks Rank & Stock Price Performance

PTC currently carries a Zacks Rank #2 (Buy). Shares of the company have declined 1.4% in the past year compared with the Zacks Computer-Software industry's growth of 11%.

Other Stocks to Consider

Some other top-ranked stocks from the broader technology space are Juniper Networks, Inc. JNPR, Arista Networks, Inc. ANET and Ubiquiti Inc. UI. JNPR presently sports a Zacks Rank #1 (Strong Buy), while ANET and UI carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Juniper is leveraging the 400-gig cycle to capture hyperscale switching opportunities inside the data center. The company is set to capitalize on the increasing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence. Juniper also introduced new features within the AI-driven enterprise portfolio that enable customers to simplify the rollout of their campus wired and wireless networks while bringing greater insight to network operators. In the last reported quarter, it delivered an earnings surprise of 4.88%.

Arista delivered a trailing four-quarter average earnings surprise of 11.82% and has a long-term growth expectation of 14.81%. Arista currently serves five verticals, namely cloud titans (customers that deploy more than 1 million servers, cloud specialty providers, service providers, financial services and the rest of the enterprise. It supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers.

Ubiquiti’s effective management of its strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 33.3%. Its highly flexible global business model remains well-suited to adapt to the changing market dynamics to overcome challenges while maximizing growth.

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