PTC delivered a solid QQ2 2025 performance, underscoring the resilience of its software subscription model and the company’s strategic AI-driven product portfolio. Reported revenue of $636.4 million and an EBITDA of $258.5 million supported an operating income of $223.5 million and a net income of $162.6 million, alongside 10% constant-currency ARR growth to $2.326 billion. The quarter featured meaningful progress in the company’s go-to-market (GTM) transformation, including a verticalized sales structure and higher pipeline velocity, coupled with disciplined capital allocation (delevering to ~1.5x gross leverage and a $75 million stock repurchase in Q2). Management emphasized that the macro backdrop remains uncertain, prompting a revised ARR growth band of 7-9% for fiscal 2025 and a raised free cash flow floor of $840 million. The AI-driven product strategy advanced across Windchill, Codebeamer, ServiceMax, and Onshape, with Windchill AI previewed at Hannover Messe and Codebeamer 3.0 GA. Looking ahead, PTC remains positioned to monetize digital transformation through an integrated portfolio (PLM, ALM, SLM, CAD, SaaS) and a scalable AI-enabled data foundation, even as it monitors macro volatility and potential deal-sizing/framing adjustments. Investors should weigh the upside from AI-enabled cross-sell and SaaS adoption against near-term macro headwinds and FX volatility.