PTC Inc. (PTC)

Product lifecycle (Windchill, Arena) + CAD (Creo, Onshape) + field service (ServiceMax) — the software that designs and manages physical products; IoT/connectivity divested to TPG in Mar 2026

AI exposure 5% — derived from reported segment revenue, not asserted.

Where it sits

Software Stack → Industrial & Automation Software · figures rebased to FQ3 FY2026, reported 2026-07-29

PTC's largest business is product lifecycle management at 56% — Windchill and Arena, which manage product data through manufacturing, service and upgrade rather than author the design. Gartner classifies Windchill under PLM software for discrete manufacturing industries. Creo and Onshape CAD are the smaller 44%, so by rule 2 the primary follows the lifecycle half: this is software for running products through the factory and the field.

Reported segments

PLM + Product Lifecycle (Windchill, Arena) — 56% of revenue
CAD (Creo, Onshape) — 44% of revenue

PTC (~$2.7B FY2026 guided) — now a pure-play product-lifecycle + engineering software company after divesting the IoT/AR businesses (ThingWorx/Vuforia; reported revenue -7% YoY on divestiture comps, ARR reported ex-divested). PLM ~56% (Windchill/Arena — managing product data through design/manufacturing = primary B5 Engineering Software) + CAD ~44% (Creo/Onshape). Primary B5 Industrial & Automation Software (PLM/CAD, NOT chip EDA). NVIDIA designs its AI hardware in Creo/Windchill; Omniverse libraries integrated into both. Competes Dassault/Siemens/Autodesk in PLM-CAD; serves manufacturers.

How the 5% is built

PLM + Product Lifecycle (Windchill, Arena) — 56% of revenue × 5% AI-driven (estimate). Windchill manages product/BOM data across all discrete manufacturing verticals; NVIDIA is a named Windchill customer and the NVIDIA Omniverse integration explicitly targets AI-infrastructure hardware (high-performance PCBs, cooling, data-center equipment), but electronics/high-tech is a small slice of a broad…
CAD (Creo, Onshape) — 44% of revenue × 5% AI-driven (estimate). Creo is general mechanical CAD across industrial equipment, automotive and electronics; NVIDIA engineers its AI hardware in Creo and Onshape API calls tripled from AI startups, but neither is sized, so the AI-attributable share stays a small labeled estimate

Investment read

Moat. PLM and CAD franchise — Windchill/Arena for product data, Creo/Onshape for design — with installed-base and subscription lock-in. Now a pure play: the IoT/AR businesses (ThingWorx, Vuforia, Kepware) have been divested, so the read is entirely on engineering software.

Bottleneck / pricing power. Moderate-to-strong pricing power (PLM switching costs, ~84% gross margin), and the pricing signal is holding: constant-currency ARR ex-divested grew 9.1% in Q3 FY2026, accelerating from 8.5%, with the FY2026 growth floor raised 150bps to 9.0%. Reported revenue is falling (-7% YoY) purely on divestiture and licence-timing comps — ARR is the clean signal.

Role in the AI stack. The product-lifecycle + CAD layer for physical-product engineering.

Connected companies

Autodesk (ADSK) — PTC competes with: Compete in mechanical/product CAD (Autodesk Inventor/Fusion vs PTC Creo/Onshape); less overlap in Autodesk's AEC vs PTC's PLM strengths
Dassault Systèmes (DSY) — PTC competes with: PLM + CAD (PTC Windchill/Creo vs Dassault 3DEXPERIENCE/CATIA)
Siemens (SIEGY) — PTC competes with: industrial/PLM software overlap
NVIDIA (NVDA) — PTC supplies: NVIDIA uses PTC Creo + Windchill as design-of-record for its AI hardware; PTC integrated NVIDIA Omniverse (OpenUSD/RTX) into Creo and Windchill (partnership announced Jul 2025, re-cited on the Q3…

Others in Industrial & Automation Software

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