How does PTC (PTC) make money?

PTC (PTC) generates revenue primarily from Support And Cloud Services, which accounted for 49.5% of total revenue in TTM through Q2 2026. The company reported $2.95B in revenue and converted 41.4% of it into net profit, equivalent to roughly $1.22B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of PTC (PTC)?

PTC (PTC) reported a gross profit margin of 84.5% in TTM through Q2 2026, equivalent to $2.5B in gross profit on $2.95B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of PTC (PTC)?

PTC (PTC) reported an operating profit margin of 37.8% in TTM through Q2 2026, equivalent to $1.12B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of PTC (PTC)?

PTC (PTC) reported a net profit margin of 41.4% in TTM through Q2 2026, equivalent to $1.22B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is PTC (PTC) profitable?

Yes. PTC (PTC) reported $1.22B in net income for TTM through Q2 2026, with a net profit margin of 41.4%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does PTC (PTC) invest in research and development?

PTC (PTC) invested $474M in research and development during TTM through Q2 2026, roughly 16.1% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does PTC (PTC) spend on capital expenditures?

PTC (PTC) spent $19.8M on capital expenditures (CapEx) during TTM through Q2 2026, roughly 0.7% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does PTC (PTC) generate?

PTC (PTC) generated $935M in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 31.7%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of PTC (PTC)?

PTC (PTC) had an effective tax rate of 20% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of PTC (PTC)?

PTC (PTC) reports revenue across 3 reportable product segments, led by Support And Cloud Services at 49.5% of total revenue in TTM through Q2 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How PTC Makes Money: 2026 Visual Revenue Map

PTC (PTC) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending June 30, 2026 (reported July 29, 2026).

PTC discloses geographic revenue only in annual filings. to view the full breakdown.

PTC (PTC) Revenue by Product Segment — TTM through Q2 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for PTC (PTC), TTM through Q2 2026.
Segment	Revenue (USD)	% of total
Support And Cloud Services	$1.46B	49.5%
License	$1.4B	47.4%
Technology Service	$90.7M	3.1%
Total	$2.95B	100%

Support And Cloud Services$1.46B
License$1.4B
Technology Service$90.7M
Total$2.95B

Revenue Breakdown — TTM through Q2 2026

In TTM through Q2 2026, PTC (PTC) reports revenue across 3 reportable product segments; the largest segment was Support And Cloud Services at 49.5%, followed by License (47.4%) and Technology Service (3.1%).

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