PTC Inc. has recently rolled out model-based definition (MBD) features in its Onshape platform, a fully cloud-hosted CAD and PDM system. This launch represents a significant milestone, being the first MBD option available in a cloud environment. It aims to enhance product development by incorporating product manufacturing information (PMI) directly into 3D models. Currently available through an early visibility program for select clients, this new feature is expected to be widely accessible by late 2025. PTC is set to demonstrate these advancements at the upcoming Paris Air Show, happening from June 16–19, in partnership with Aura Aero, a leader in eco-friendly aviation.
Model-based definition is a robust approach for creating a detailed digital representation of a product through a 3D CAD model. Traditionally, manufacturing teams relied on 2D drawings to convey design intent—such as dimensions, tolerances, annotations, materials, and surface finishes. MBD simplifies this by embedding all essential PMI directly into the 3D model itself, which decreases the likelihood of misunderstandings. This innovation fosters a continuous digital process throughout the entire product lifecycle, which includes design, simulation, manufacturing, and inspection phases. Despite the increasing use of 3D CAD technologies, many manufacturing processes still cling to reliance on 2D drawings for vital information.
Such dependence on traditional methods slows down operations and heightens the chances of human error. The manual interpretation of 2D drawings adds a layer of complexity within a digital workflow, leading to inefficiencies and a greater risk of discrepancies between design and production.
PTC is strategically positioned to leverage its extensive product lineup. Its solutions empower industrial businesses to improve operational efficiencies, hasten product and service innovation, and enhance workforce productivity. The growing influence of its major technology platforms—including its 3D modeling software Creo, lifecycle management solution Windchill, data orchestration tool ThingWorx, and augmented reality product Vuforia Studio—is expected to drive revenue growth.
PTC is also making strides with generative AI initiatives that are anticipated to propel long-term success. The company has integrated generative AI capabilities across its various platforms, including PLM, ALM, SLM, and CAD software, featuring updates in Windchill AI, Codebeamer 3.0, ServiceMax AI, and Onshape AI Advisor.
In April 2025, PTC introduced two significant enhancements to its Onshape platform: Onshape AI Advisor and Onshape Government. These additions demonstrate PTC's dedication to equipping engineers, designers, and regulated organizations with powerful tools that facilitate effective product development, improve productivity, and ensure adherence to regulations. By merging generative AI with compliance-oriented infrastructure within its cloud-native CAD and PDM ecosystem, PTC continues to foster innovation across various industries.
Onshape is making substantial contributions to the education sector as well. The platform attracts over 1.5 million new registrations annually from students and educators. Recognized institutions, such as Ohio State University, Duke University, and the University of Southern California, have integrated Onshape into their engineering programs, preparing the future workforce for a cloud-based, AI-driven environment.
Additionally, in September 2024, PTC entered into a partnership with Amazon Web Services to further develop its Onshape solution. This collaboration aims to enhance Onshape's features, increase user adoption, and advance AI initiatives. The ultimate goal is to assist designers and engineers in producing high-quality products more swiftly and efficiently.
Despite its strong position, PTC is contending with some challenges. A significant portion of the company's revenue in fiscal 2024 came from international markets, and the strong U.S. dollar poses a risk to growth. Ongoing tariff challenges and sluggish global conditions add to the pressures. Consequently, PTC has revised its annual recurring revenue (ARR) growth forecast for fiscal 2025 to a range of 7%–9%, reducing the upper estimate from 10% due to delays in deals and increasing uncertainties.
PTC currently holds a Zacks Rank of #2 (Buy). Over the past year, the company's stock has declined by 1.4%, in contrast to an 11% growth within the Zacks Computer-Software sector.
PTC's stock price has remained under pressure, reflecting broader market conditions, yet the firm remains confident in its long-term strategy.
Several other high-ranking stocks in the technology field are worth consideration. Companies such as Juniper Networks, Inc. (JNPR), Arista Networks, Inc. (ANET), and Ubiquiti Inc. (UI) hold commendable positions within the market. Currently, Juniper boasts a Zacks Rank of #1 (Strong Buy), while both Arista and Ubiquiti share a rank of #2.
Juniper is capitalizing on the demand for 400-gigabit solutions to seize opportunities within data centers. The company is set to benefit from the increasing need for cloud computing, mobile traffic management, and data center virtualization. It has also rolled out new features in its AI-driven enterprise portfolio aimed at simplifying the deployment of wired and wireless campus networks.
Arista has delivered an impressive average earnings surprise of 11.82% over the last four quarters, with long-term growth expectations sitting at approximately 14.81%. The company serves five primary sectors, including cloud providers and financial services, and supplies products to an esteemed roster of clients—including Fortune 500 companies.
Ubiquiti has effectively managed its extensive global distribution network, enhancing visibility for anticipated demand while improving inventory management practices. This adaptability has allowed Ubiquiti to navigate market fluctuations successfully, and it recently reported an earnings surprise of 33.3%.
New insights into promising stock opportunities have been released. Experts have identified seven exceptional stocks from a larger pool of 220 Zacks Rank #1 Strong Buys. These selections are considered the "Most Likely to Experience Early Price Gains."
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By understanding the key facets of PTC's business, its innovations, and the broader market dynamics, stakeholders can navigate the complexities of this evolving technology landscape effectively.
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