PTC Cuts Revenue, Earnings Forecasts Amid Competition, Tariff Concerns

PTC has lowered its full-year revenue and adjusted earnings projections due to intensifying competition and worries over President Donald Trump's tariff strategy, which may reduce demand for its industrial and testing software.

PTC provides product lifecycle management (PLM) software for product development and manufacturing. It competes fiercely with AutoDesk, Siemens, and Dassault Systems.

PTC now estimates full-year revenue between $2.43 billion and $2.53 billion, down from its previous range of $2.51 billion to $2.61 billion. U.S. automakers, who are PTC customers, are vulnerable to Trump's tariffs. Last week, the president imposed tariffs of 25% on Mexico and Canada and 10% on China. Despite initially planning to implement these tariffs on February 4, he agreed to a 30-day suspension on Mexico and Canada in exchange for concessions at the border.

PTC now predicts adjusted earnings per share between $5.30 and $6.00 for the full year, down from its prior range of $5.60 to $6.30.

Volkswagen is one of PTC's clients and is vulnerable to European tariffs, according to Stifel.

In the second quarter, PTC anticipates revenue between $590 million and $620 million, below analysts' average forecast of $648.7 million (LSEG data). PTC estimated adjusted earnings per share of $1.30 to $1.50, compared to analysts' expectations of $1.62.

For the first quarter ended December 31, PTC reported revenue of $565 million, exceeding analyst estimates of $552.1 million. Excluding one-time items, PTC earned $1.10 per share, exceeding projections of 89 cents.