What Happened?
Shares of engineering and design software provider PTC (NASDAQ: PTC) jumped 6.9% in the afternoon session after the company reported strong third-quarter fiscal 2025 results that beat analyst expectations and led to a raised full-year outlook. The design software provider reported that its revenue grew 24% year-over-year to $644 million. Net income surged a remarkable 104.9%, which marked its highest level for a fiscal third quarter in over two decades. In response to the strong quarter, PTC lifted its full-year forecast for key financial metrics including revenue, free cash flow, and earnings per share. The positive results arrived amid broader strength in the software-as-a-service sector. The news prompted positive reactions from Wall Street, and the stock reached an all-time high.
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What Is The Market Telling Us
PTC’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 17 days ago when the stock dropped 5.4% as a report revealed that fellow software firm Autodesk (ADSK) would no longer pursue an acquisition of the company.
According to a Bloomberg report citing people familiar with the matter, Autodesk decided to shelve its work on a potential cash-and-stock deal for PTC. The news sent PTC's shares down while Autodesk's stock rose, suggesting investors in the latter company were relieved that it was not moving forward with what would have been one of the largest takeovers of the year. PTC's stock had previously risen on reports that Autodesk was considering a buyout. In a regulatory filing, Autodesk stated it would remain focused on its strategic priorities, which include "targeted and tuck-in acquisitions," and did not specifically mention PTC.
PTC is up 18% since the beginning of the year, and at $215.98 per share, has set a new 52-week high. Investors who bought $1,000 worth of PTC’s shares 5 years ago would now be looking at an investment worth $2,524.
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