With a market cap of $20.7 billion, PTC Inc. (PTC) operates as a software company in the Americas and internationally. Headquartered in Boston, Massachusetts, the company offers a comprehensive portfolio of software solutions comprising computer-aided design modeling, product lifecycle management, data orchestration, and experience.

Shares of the company have underperformed the broader market over the past year and in 2025. PTC stock has declined 6.1% over the past 52 weeks and 6% on a YTD basis. In comparison, the S&P 500 Index ($SPX) has returned 12.5% over the past year and 1.3% in 2025.

Narrowing the focus, PTC has also struggled to keep pace with the Technology Select Sector SPDR Fund’s (XLK) 10.7% uptick over the past 52 weeks and its 1% surge this year.

PTC shares surged marginally following the release of its Q2 earnings on Apr. 30. The company reported a 6% year-over-year growth in its revenue, which amounted to $636 million and topped Street forecasts. The company’s non-GAAP operating margin also expanded by 490 basis points to 47%. PTC’s adjusted earnings rose 23% from the prior year’s quarter to $1.79 and surpassed the analyst estimates by 37.7%.

For the current year, ending in September 2025, analysts expect PTC’s EPS to increase 28.6% year over year to $4.72. The company’s earnings surprise history is impressive. It surpassed the consensus estimate in each of the last four quarters.

PET stock has a consensus “Moderate Buy” rating. Out of 18 analysts covering the stock, 12 rate it as a "Strong Buy," one recommends a “Moderate Buy,” and five recommend a “Hold.”

The configuration is less bullish than two months ago, when 13 analysts gave the stock a “Strong Buy” rating.

On May 1, Stifel analyst Adam Borg maintained a "Buy" rating on PTC stock and adjusted the price target downward from $230 to $200.

PTC’s mean price target of $186.39 indicates a premium of 7.8% from the current market prices. Its Street-high target of $240 suggests an impressive 38.8% upside potential from current price levels.