PTC Completes Kepware & ThingWorx Sale, Raises FY2026 Free Cash Flow View and Details Buybacks

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Sat, March 21, 2026 astatine 4:04 PM CDT 6 min read

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PTC completed the merchantability of Kepware & ThingWorx$523 cardinal and estimated nett after‑tax proceeds of $375 million, and recorded a $464 million summation connected the sale; ARR guidance present excludes those businesses.
Post‑divestiture escaped currency travel guidance for fiscal 2026 was raised to $850 million, with a modulation services statement (TSA) with TPG expected to mostly offset mislaid currency travel successful FY26 but make an astir $70 million FCF headwind successful FY27.
PTC intends to usage the bulk of escaped currency travel for stock repurchases, targeting full buybacks of $1.125–$1.225 billion, portion currency taxes are expected to emergence toward GAAP rates (FY27 currency taxes modeled astatine $180–$220 million).
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PTC (NASDAQ:PTC) utilized an capitalist update telephone to sermon the completed divestiture of its Kepware and ThingWorx businesses and to outline however the transaction affects fiscal 2026 guidance, currency travel expectations, and superior allocation priorities.

Chief Financial Officer Jen D’Errico said the institution is “pleased to implicit the divestiture” and volition summation its absorption connected PTC’s “intelligent merchandise lifecycle vision.” The transaction closed March 13, and the telephone was held March 16.

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D’Errico said the institution included appendix slides successful its platform showing changes versus the estimates provided erstwhile PTC announced the divestiture connected Nov. 5, 2025. She said determination were “no worldly changes” to those archetypal estimates, but cited 3 “immaterial” updates:

Transaction proceeds were $523 million, $2 cardinal beneath the anterior estimation of $525 million, owed to moving superior and indebtedness adjustments.
Divestiture-related costs are present expected to beryllium astir $40 million, up $5 cardinal from the anterior estimation of $35 million.
Cash taxes related to the transaction are present expected to beryllium astir $110 million, down $15 cardinal from the anterior estimation of $125 million.

Based connected these updates, D’Errico said estimated net after-tax transaction proceeds are present $375 million, which is $10 cardinal higher than the erstwhile estimation of $365 million.

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PTC updated its fiscal 2026 escaped currency travel expectations to bespeak the divestiture and the interaction of a modulation services statement (TSA) with TPG Inc. D’Errico said PTC expects to make nett currency travel inflows from the TSA, which is expected to proceed done fiscal 2026 and extremity sometime successful fiscal 2027.

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