PTC raises annual forecast on resilient demand for design software

-Industrial software maker PTC raised its annual revenue forecast and beat Wall Street estimates for second-quarter revenue on Wednesday, driven by resilient demand for its design software products.

PTC, which provides software solutions for designing, manufacturing and servicing products across multiple sectors, has seen a demand boost from clients seeking to upgrade their product lineup and maintain competitive edge, alongside companies looking to tap into the AI boom.

"While the current macroeconomic uncertainty makes it challenging for us to predict precisely how our customers will react, PTC is in a better position today to meet our customers' demand than ever before," said CEO Neil Barua.

The updated annual forecast reflects the potential for elevated macroeconomic uncertainty in the second half of 2025, CFO Kristian Talvitie said, adding that the selling environment remained challenging in the quarter ended March 31.

U.S. President Donald Trump has upended the global trading system with a spate of tariffs since taking office. These include a blanket 10% tariff on most countries except Canada and Mexico, and new tariffs totalling 145% on goods from China, which has responded with its own counter-measures.

Higher U.S. tariffs on dozens of countries are due to take effect on July 8 unless deals are reached before a 90-day pause ends.

PTC now expects annual revenue to be between $2.45 billion and $2.57 billion, up from its earlier forecast of between $2.43 billion and $2.53 billion.

For the second quarter, PTC posted revenue of $636.4 million, ahead of analysts' estimate of $607.1 million, according to data compiled by LSEG.

Adjusted earnings came in at $1.79, also beating estimates of $1.40.

(Reporting by Meghana Khare in Bengaluru and Juby Babu in Mexico City;)

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