PTC Inc.

Good evening, ladies and gentlemen. Thank you for standing by and welcome to PTC's 2026 third 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 Mike McGuire, PTC's head of investor relations. Please go ahead.

Thank you, operator, and good afternoon, everyone. Welcome to PTC's third quarter 2026 conference call. On the call today are Neil Barua, Chief Executive Officer, and Jen DiRico, 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 that differ materially from those in the forward-looking statements can be found in PTC's annual report on Form 10-K, quarterly reports on Form 10-Q, and other filings with the U.S. Securities and Exchange Commissions, 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, July 29, 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 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. Neil?

Thank you, Mike. PTC delivered another strong quarter in Q3. In particular, I'd highlight the $60 million of net new ARR we generated. Year-over-year constant currency AR and free cash flow growth both exceeded the high end of our guidance range. There are a lot of positives from Q3. Our intelligent product lifecycle solutions continue driving customer demand and business performance across verticals, geographies, and products. Our customers face growing pressure to shorten development cycles, improve resilience, and compete in an AI-driven world. They understand that their product data is a strategic enterprise asset to help drive better decisions and are turning to our CAD, PLM, ALM, and SLM systems of record to build their product data foundations. From an execution standpoint, we have turned the corner with our go-to-market transformation. We are seeing the results of the transformation in our customer wins. including deeper vertical expertise, executive-level engagement, and better cross-team collaboration. We had several notable wins this quarter, some of which are referenced in the appendix. But as an example, these results played an important role in a Q3 competitive PLM win with a major defense contractor to help modernize engineering operations for one of its critical business segments. Q3 also reinforced that our product and AI innovation is taking hold with customers. AI will be a tailwind for our business because AI requires our systems of record and the product data stored in them to be effective. Our systems structure product data in the context of engineering and service workflows, whether it's product design, a specific product configuration, or a service work order. We then apply AI to the structured contextualized data so it can complete increasingly complex tasks. We also provide the governance and access controls that are essential for safe and trustworthy AI use. We are encouraged by our AI progress and the potential in front of us. We continue delivering on our roadmap with the recent releases of Creo AI, our AI native PTC Orbit product, and the launch of Onshape Labs. Onshape is strongly positioned for AI. Its cloud native architecture, highly scalable data model and built-in collaboration make it ideal for AI workflows with humans in the loop. More broadly, our customers tell us our embedded AI capabilities are the fastest path to adoption and value because AI is delivered in the context of trusted systems and governed workflows. In Q3, we won our largest AI deal ever, a near seven-figure ServiceMax AI deal with one of the world's largest industrial automation companies. This is a long-term customer that built a strong product data foundation with ServiceMax. ServiceMax AI uses that foundation to deliver technicians relevant information via natural language interface, eliminating time spent searching documentation. The customer validated the approach through a pilot with service technicians, showing that ServiceMax AI can reduce technician preparation time by 50% and deliver 4% net productivity improvement across the service workforce. As our customers embrace AI, one of their top priorities is protecting their intellectual property, their designs, configurations, bills of material, source code, and more. They are hesitant to hand this data to the frontier model providers for security, regulatory, and competitive reasons. Instead, they need this data to remain inside governed enterprise environments with appropriate permissions, process context, and controls. They increasingly want frontier models to operate as infrastructure, while trusted systems like PTC's provide the data and workflow layer where critical product work is performed. From a commercial standpoint, AI is already increasing the strategic importance of our systems of record and the product data foundations they manage. We expect adoption to progress from focused workflows with clear customer ROI to broader deployments as customers connect more product data and teams across the lifecycle. That creates value for customers today over time expands our share of customer spend through direct adoption of PTC's AI capabilities. We expect these standalone AI capabilities to become a more meaningful contributor to ARR over the next few years. Overall, Q3 was a great start to the second half of the year, and our performance reinforced the major themes and proof points of fiscal 26. We are entering Q4 with stronger execution, Growing strategic relevance with customers with our intelligent product lifecycle strategy and increasing confidence that AI will expand the value of our portfolio over time. With that, I'll turn the call over to Jen.