PTC's Q2 performance beat expectations, driven by strong ARR growth at the high end of guidance and free cash flow exceeding targets, lifting the stock 7.3% post-earnings.

• Constant currency ARR (excluding divested units) grew 8.5% year-over-year, hitting the top of management’s guidance range.
• Free cash flow increased 14% year-over-year, surpassing the guided range.
• Completed divestiture of Kepware and ThingWorx in March, sharpening strategic focus on intelligent product lifecycle solutions.
• Management highlighted strong go-to-market execution, improved rep productivity, and a well-balanced, high-quality sales pipeline.
• Aggressive share repurchase plans in place, including $250 million in Q2 and a new $2 billion authorization starting October 2026.