PTC Inc. stock research
FY2026 Q1
PTC (PTC) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue remained relatively stable, resulting in a lower gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin improved.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2026 Q1
Revenue and gross profit both decreased compared to the prior quarter, while cost of revenue remained relatively stable, resulting in a lower gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin improved.
- The gross margin weakened sequentially as revenue declined while cost of revenue held nearly steady, compressing the profit spread. The year-over-year improvement in gross margin was supported by a larger revenue base relative to the modest increase in cost of revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was slightly higher, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
82.8%
Gross profit
$568.1M
Revenue
$685.8M
Cost of revenue
$117.7M
Quarter-over-quarter change
-4.1 pts
Year-over-year change
+2.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $636.4M | $530.1M | $106.3M | 83.3% |
| Jun 30, 2025 | $643.9M | $533.9M | $110.0M | 82.9% |
| Sep 30, 2025 | $893.8M | $776.9M | $116.9M | 86.9% |
| Dec 31, 2025 | $685.8M | $568.1M | $117.7M | 82.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-4.1 pts
Year-over-year change
Dec 31, 2024
+2.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened sequentially as revenue declined while cost of revenue held nearly steady, compressing the profit spread. The year-over-year improvement in gross margin was supported by a larger revenue base relative to the modest increase in cost of revenue.
Compared to the immediately preceding quarter, revenue and gross profit were lower, cost of revenue was slightly higher, and gross margin weakened. Compared to the same quarter one year earlier, revenue and gross profit were higher, cost of revenue was slightly higher, and gross margin improved.
Monitor the trajectory of revenue relative to cost of revenue, as a stable cost base with declining revenue could further pressure gross margin.