Is PTC (PTC) Still Below Fair Value Following Earnings And The Schneider Electric Deal?

Why PTC’s latest earnings and takeover news matter

PTC (PTC) just delivered fourth quarter and full year 2026 results, paired with a definitive agreement to be acquired by Schneider Electric, putting fresh attention on the stock’s fundamentals and deal terms.

Despite the takeover agreement, traders have still been active in PTC, with the share price up 31.74% over the past 90 days and a more modest 10.50% total shareholder return over the past year. This suggests momentum has been building rather than fading.

Scan how other software and industrial-tech players are reacting to the same themes as PTC’s deal and earnings by focusing on our curated list of 21 high quality undiscovered gems.

PTC now sits at the crossroads of a Schneider Electric buyout, mixed quarterly trends, and a 32% three month surge. The business appears strong, but are you paying a premium or getting fair terms at today’s price?

Most Popular Narrative: 3% Undervalued

PTC last closed at $194.60, while the most followed narrative pegs fair value at $201.00 using an 8.74% discount rate. The stock is framed as modestly undervalued, with the Schneider Electric offer providing a reference point at $205 per share.

The current valuation implies that the market is not fully pricing in this bullish narrative that PTC is undervalued given its raised ARR and revenue guidance, increased repurchase plans and the role of its product data platforms as a foundation for industrial AI.

Progress in the go to market transformation, with management citing improved rep productivity, renewal rates, pipeline quality and larger competitive wins that contributed to Q3 FY26 net new ARR of US$60 million and raised ARR guidance, is intended to support stronger new customer acquisition and upsell, which could benefit ARR and margins as sales efficiency improves.

See why 23 investors see PTC as 3% undervalued.

Result: Fair Value of $201.00 (UNDERVALUED)

Still, the PTC story could change quickly if elevated churn at ServiceMax drags on, or if investors assign a lower P/E multiple than analysts assume.

Find out about the key risks to this PTC narrative.

Next Steps

Mixed feelings about PTC’s setup after the Schneider Electric deal and recent surge are completely reasonable. Move quickly, review the underlying numbers, and weigh both the 1 or more risks and 1 or more potential rewards that investors are already talking about through 3 key rewards and 3 important warning signs.

Looking for more investment ideas beyond PTC?

If PTC has sharpened your focus, keep that momentum going by lining up fresh candidates that fit the kind of portfolio you actually want to build.

• Target resilient balance sheets and steadier fundamentals by scanning the list of solid balance sheet and fundamentals (24 results) that already clear strict financial health checks.
• Hunt for potential value opportunities by reviewing the 42 high quality undervalued stocks that pair stronger cash generation with more measured pricing.
• Prioritise consistency and reduced volatility by assessing the 32 resilient stocks with low risk scores that score well on Simply Wall Street's risk filters.

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