PTC Inc.

Good evening, ladies and gentlemen. Thank you for standing by, and welcome PTC's 2026 second quarter conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. I would now like to turn the call over to Matt Chamau, PTC's head of investor relations. Please go ahead.

Good afternoon. Thank you, Operator, and welcome to PTC's second quarter 2026 conference call. On the call today are Neil Barua, Chief Executive Officer, and Jen DeRigo, Chief Financial Officer. Today's conference call is being broadcast live through an audio webcast, and a replay of the call will be available later today at www.ptc.com. During this call, PTC will make forward-looking statements, including guidance as to future operating results. Because such statements deal with future events, actual results may differ materially from those projected in the forward-looking statements. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements can be found in PTC's annual report on Form 10-K, Form 10-Q, and other filings with the U.S. Securities and Exchange Commission, as well as in today's press release. The forward-looking statements, including guidance provided during this call, are valid only as of today's date, May 6, 2026, and PTC assumes no obligation to update these forward-looking statements. During the call, PTC will discuss non-GAAP financial measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures can be found in today's press release made available on our website. With that, I'd like to turn the call over to PTC's Chief Executive Officer, Neil Barua.

Thank you, Matt, and good afternoon, everyone. PTC delivered a strong Q2. We grew constant currency ARR 8.5% at the high end of guidance and free cash flow 14% year-over-year, exceeding our guidance range. With the divestiture completed in March, we're moving forward as a more focused company, fully concentrated on our intelligent product lifecycle vision. Our go-to-market transformation continues to gain traction. Rep productivity and renewal rates continue to improve. And we've built a large, high-quality pipeline for the second half. well balanced across geographies, verticals, and products. We also continued structuring deals for PPC's long-term benefit, increasing our deferred ARR for fiscal 27 and beyond. We're encouraged by the consistency and momentum we've built over the last several quarters and are focused on delivering a strong second half. Let's talk about AI and how it's driving momentum for PPC. I'll start with a concrete example from Q2. We displaced a competitor with Windchill Plus and a leading automotive supplier. We won because we showed this customer two things. First, that Windchill manages the authoritative product data their business runs on, and second, a clear roadmap for AI agents that will drive productivity gains across their PLM workflows. This customer moved forward because they understood that to take advantage of AI, they first need to modernize their product data foundation. Importantly, we are seeing this theme resonate consistently across our pipeline. This is the first way AI is creating momentum, by driving modernization demands. Our customers are recognizing that the strength of their product data foundation determines their AI ceiling. DTC enables product data foundations with our CAD, ELM, ALM, and SLM systems of record. These systems are now evolving to systems of action in an AI world, where AI agents reason across product data and execute real work. The second way AI drives momentum is through the intelligence layer we're building on top of our systems. Consider what happens today when an engineering change is made to an MRI machine. That change spans multiple teams, takes months, and costs significant time and money. Now imagine a world where AI agents are reasoning across the lifecycle, reconciling the change across designs, bills of materials, supplier contracts, work instructions, and bringing humans into the loop for approval at each stage. Months compressed to hours. As confidence in that intelligence layer grows, the scope of transformation expands from a single engineering change to enterprise-wide process optimization. As we move in this direction, we will continue building and embedding specialized agents across our portfolio that can access product data that no general purpose AI model can reach. For example, our Creo and Onshape agents are the only agents that can access the underlying mathematical and geometric parameters within those systems to support complex 3D product designs. Modifying a parametric part requires an understanding of shape, tolerances, material properties, manufacturing constraints, and how a change propagates across assemblies. General purpose AI models aren't built for this kind of work. And as customers mature their product data in our systems, the advantage compounds. More data, smarter agents, and deeper workflows. We're scaling this aggressively, nearly doubling our AI releases in 2026 versus 2025, including our first AI-native products. And as these capabilities mature, they open clear modernization pathways, from expanded platform adoption today to agent-driven value capture over time. We'll detail these as they take shape, but the direction is clear, as AI scales, value flows to the systems that provide the trusted data, context, and workflow intelligence that make AI useful in a real-world industrial environment. ETC is increasingly well-positioned at the center of how AI gets applied across the lifecycle. Our strategy is clear, our execution is more consistent, and we're building real momentum across the business. We remain focused on delivering a strong second half and creating durable, long-term value for our customers and shareholders. With that, I'll turn the call over to Jen.