PTC announced that it has closed the sale of its Kepware and ThingWorx businesses to TPG on March 16 2026, receiving $523 million in cash proceeds. After deducting approximately $40 million in divestiture‑related costs and $110 million in cash taxes, the company expects net after‑tax proceeds of roughly $375 million.
The transaction will fund a $375 million accelerated share repurchase (ASR) program that is expected to settle in the third quarter of fiscal 2026. PTC has also outlined a total FY 2026 share‑repurchase target of $1.125 billion to $1.325 billion, underscoring management’s confidence in the company’s valuation and its commitment to returning capital to shareholders.
With the divestiture complete, PTC has updated its fiscal‑2026 guidance. Revenue is now projected at $2,540 million to $2,805 million, free cash flow at about $850 million, and constant‑currency ARR growth for the remaining business at 7.5% to 9.5%. GAAP earnings per share are expected to range from $6.94 to $9.66, while non‑GAAP EPS guidance is $6.36 to $8.84. The guidance reflects a $464 million gain on the sale that is included in the EPS figures.
For the second quarter of fiscal 2026, PTC forecasts revenue of $685 million to $745 million, free cash flow of $310 million to $315 million, and GAAP EPS of $4.09 to $4.74. These numbers are driven by stronger demand in the company’s core Intelligent Product Lifecycle (IPL) segments—CAD, PLM, ALM, and SLM—while the divested businesses, which previously contributed about $160 million in ARR and $70 million in free cash flow with a 1% decline in ARR, are no longer part of the operating picture.
CEO Neil Barua said, “We are pleased to complete the divestiture of our Kepware and ThingWorx businesses as we increase our focus on our Intelligent Product Lifecycle vision.” He added, “With our resources and investments concentrated in these areas, we are confident we can help our customers address their most pressing challenges by enabling them to fully leverage the value of their product data and to transform each stage of the product lifecycle.” Barua also noted, “Kepware and ThingWorx are leading products, and we are pleased that they are gaining an outstanding partner in TPG that is committed to their future growth and to meeting the evolving needs of customers. We look forward to continuing to work with these businesses as they scale and evolve under TPG’s ownership.”
The sale allows PTC to streamline its portfolio, focus capital and talent on high‑margin, high‑growth IPL offerings, and accelerate its transition to a cloud‑first, AI‑driven model. The substantial cash proceeds and aggressive share‑repurchase plan signal strong confidence in the company’s long‑term prospects, while the updated guidance reflects a more focused, higher‑margin operating model. TPG’s acquisition of Kepware and ThingWorx is expected to provide those businesses with additional resources to pursue growth in industrial connectivity and IoT, complementing TPG’s broader industrial software strategy.
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