PTC INC., 10-Q filed on 5/1/2025
Quarterly Report
v3.25.1
Document and Entity Information - shares
 6 Months Ended
Mar. 31, 2025
Apr. 29, 2025
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2025  
Document Transition Report false  
Entity File Number 0-18059  
Entity Registrant Name PTC Inc.  
Entity Incorporation, State or Country Code MA  
Entity Tax Identification Number 04-2866152  
Entity Address, Address Line One 121 Seaport Boulevard  
Entity Address, City or Town Boston  
Entity Address, State or Province MA  
Entity Address, Postal Zip Code 02210  
City Area Code 781  
Local Phone Number 370-5000  
Title of 12(b) Security Common Stock, $.01 par value per share  
Trading Symbol PTC  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   119,947,852
Amendment Flag false  
Entity Central Index Key 0000857005  
Current Fiscal Year End Date --09-30  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q2  
v3.25.1
Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Mar. 31, 2025
Sep. 30, 2024
ASSETS    
Cash and cash equivalents $ 235,169 $ 265,808
Accounts receivable, net of allowance for doubtful accounts of $1,272 and $1,180 at March 31, 2025 and September 30, 2024, respectively 716,624 861,953
Prepaid expenses 114,624 102,931
Other current assets 66,392 68,013
Total current assets 1,132,809 1,298,705
Property and equipment, net 68,047 75,187
Goodwill 3,444,104 3,461,891
Acquired intangible assets, net 855,794 897,476
Deferred tax assets 186,401 159,404
Operating right-of-use lease assets 127,808 133,317
Other assets 347,468 357,562
Total assets 6,162,431 6,383,542
LIABILITIES AND STOCKHOLDERS’ EQUITY    
Accounts payable 8,500 24,198
Accrued expenses and other current liabilities 101,317 129,528
Accrued compensation and benefits 129,859 173,797
Accrued income taxes 70,725 39,978
Current portion of long-term debt 25,000 521,467
Deferred revenue 786,530 754,039
Short-term lease obligations 24,319 24,186
Total current liabilities 1,146,250 1,667,193
Long-term debt 1,364,393 1,227,105
Deferred tax liabilities 31,417 32,216
Long-term deferred revenue 15,317 21,235
Long-term lease obligations 153,786 157,568
Other liabilities 64,805 63,827
Total liabilities 2,775,968 3,169,144
Commitments and contingencies (Note 11)
Stockholders’ equity:    
Preferred stock, $0.01 par value; 5,000 shares authorized; none issued 0 0
Common stock, $0.01 par value; 500,000 shares authorized; 119,926 and 120,155 shares issued and outstanding at March 31, 2025 and September 30, 2024, respectively 1,199 1,202
Additional paid-in capital 1,909,537 1,965,307
Retained earnings 1,594,486 1,349,610
Accumulated other comprehensive loss (118,759) (101,721)
Total stockholders’ equity 3,386,463 3,214,398
Total liabilities and stockholders’ equity $ 6,162,431 $ 6,383,542
v3.25.1
Consolidated Balance Sheets (Parentheticals) (Unaudited) - USD ($)
$ in Thousands
Mar. 31, 2025
Sep. 30, 2024
Current assets:    
Allowance for doubtful accounts $ 1,272 $ 1,180
Stockholders’ equity:    
Preferred stock, par value (in USD per share) $ 0.01 $ 0.01
Preferred stock, shares authorized 5,000,000 5,000,000
Preferred stock, shares issued 0 0
Common stock, par value (in USD per share) $ 0.01 $ 0.01
Common stock, shares authorized 500,000,000 500,000,000
Common stock, shares issued 119,926,000 120,155,000
Common stock, shares outstanding 119,926,000 120,155,000
v3.25.1
Consolidated Statements Of Operations (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Mar. 31, 2025
Mar. 31, 2024
Revenue:        
Total revenue $ 636,366 $ 603,072 $ 1,201,494 $ 1,153,286
Cost of revenue:        
Total cost of revenue 106,262 110,055 218,059 220,075
Gross margin 530,104 493,017 983,435 933,211
Operating expenses:        
Sales and marketing 125,031 134,521 282,563 271,445
Research and development 111,023 106,998 226,539 212,781
General and administrative 54,993 61,526 108,312 130,732
Amortization of acquired intangible assets 11,380 10,424 22,820 20,787
Impairment and other charges (credits), net 4,213 (7) 4,213 (802)
Total operating expenses 306,640 313,462 644,447 634,943
Operating income 223,464 179,555 338,988 298,268
Interest expense (19,606) (31,586) (41,654) (66,920)
Other income (expense), net 1,391 (2,224) 1,069 (4)
Income before income taxes 205,249 145,745 298,403 231,344
Provision for income taxes 42,605 31,300 53,527 50,512
Net income $ 162,644 $ 114,445 $ 244,876 $ 180,832
Earnings per share—Basic $ 1.35 $ 0.96 $ 2.04 $ 1.52
Earnings per share—Diluted $ 1.35 $ 0.95 $ 2.02 $ 1.5
Weighted-average shares outstanding—Basic 120,177 119,587 120,210 119,354
Weighted-average shares outstanding—Diluted 120,854 120,712 121,000 120,480
License        
Revenue:        
License $ 254,395 $ 234,321 $ 427,149 $ 418,319
Cost of revenue:        
Cost of license revenue 10,939 10,602 21,162 20,931
Support and cloud services        
Revenue:        
Support and cloud services 352,990 336,446 713,952 666,915
Cost of revenue:        
Cost of support and cloud services revenue 70,303 67,414 141,655 134,437
Software        
Revenue:        
Total software revenue 607,385 570,767 1,141,101 1,085,234
Cost of revenue:        
Total cost of software revenue 81,242 78,016 162,817 155,368
Professional services        
Revenue:        
Professional services 28,981 32,305 60,393 68,052
Cost of revenue:        
Cost of professional services revenue $ 25,020 $ 32,039 $ 55,242 $ 64,707
v3.25.1
Consolidated Statements Of Comprehensive Income (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Mar. 31, 2025
Mar. 31, 2024
Statement of Comprehensive Income [Abstract]        
Net Income (Loss) $ 162,644 $ 114,445 $ 244,876 $ 180,832
Other comprehensive income (loss), net of tax:        
Hedge gain (loss) arising during the period, net of tax of $4.9 million and $(2.1) million in the second quarter of 2025 and 2024, respectively, and $(3.3) million and $1.7 million in the first six months of 2025 and 2024, respectively (15,014) 6,432 10,226 (5,079)
Foreign currency translation adjustment, net of tax of $0 for each period 36,202 (24,792) (27,795) 9,882
Change in pension benefit, net of tax of $0.0 million and $0.0 million in the second quarter of 2025 and 2024, respectively, and $(0.1) million and $0.0 million in the first six months of 2025 and 2024, respectively (313) 216 531 (6)
Other comprehensive income (loss) 20,875 (18,144) (17,038) 4,797
Comprehensive income $ 183,519 $ 96,301 $ 227,838 $ 185,629
v3.25.1
Consolidated Statements Of Comprehensive Income (Parenthetical) (Unaudited) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Mar. 31, 2025
Mar. 31, 2024
Statement of Comprehensive Income [Abstract]        
Hedge gain (loss) arising during the period, tax $ 4.9 $ (2.1) $ (3.3) $ 1.7
Foreign currency translation adjustment, tax 0.0 0.0 0.0 0.0
Change in pension benefit, net of tax $ 0.0 $ 0.0 $ (0.1) $ 0.0
v3.25.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 6 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Cash flows from operating activities:    
Net Income (Loss) $ 244,876 $ 180,832
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 51,263 54,144
Amortization of right-of-use lease assets 16,165 15,459
Stock-based compensation 107,363 113,204
Other non-cash items, net 1,903 649
Changes in operating assets and liabilities, excluding the effects of acquisitions:    
Accounts receivable 127,972 107,507
Accounts payable and accrued expenses (35,405) (48,345)
Accrued compensation and benefits (15,301) (16,451)
Deferred revenue 34,532 40,971
Accrued income taxes 5,565 18,087
Other current assets and prepaid expenses (7,735) (21,745)
Operating lease liabilities (2,596) (10,293)
Other noncurrent assets and liabilities (8,864) 4,052
Net cash provided by operating activities 519,738 438,071
Cash flows from investing activities:    
Additions to property and equipment (5,575) (8,202)
Acquisitions of businesses, net of cash acquired 0 (93,457)
Settlement of net investment hedges 12,260 (2,224)
Net cash provided by (used in) investing activities 6,685 (103,883)
Cash flows from financing activities:    
Borrowings under credit facility 860,000 739,845
Repayments of Senior Notes (500,000) 0
Repayments of borrowings under credit facility and acquired debt (720,125) (435,671)
Repurchases of common stock (150,000) 0
Proceeds from issuance of common stock 13,307 12,709
Payments of withholding taxes in connection with stock-based awards (52,871) (71,184)
Payment of deferred acquisition consideration 0 (620,040)
Other financing activity (1,410) 0
Net cash used in financing activities (551,099) (374,341)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash (6,048) 829
Net change in cash, cash equivalents, and restricted cash (30,724) (39,324)
Cash, cash equivalents, and restricted cash, beginning of period 266,466 288,798
Cash, cash equivalents, and restricted cash, end of period 235,742 249,474
Supplemental disclosure of non-cash financing and investing activities:    
Operating right-of-use assets obtained in exchange for operating lease liabilities $ 11,294 $ 2,847
v3.25.1
Consolidated Statements of Stockholder's Equity (Unaudited) - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Loss
Beginning balance at Sep. 30, 2023 $ 2,677,290 $ 1,188 $ 1,820,905 $ 973,277 $ (118,080)
Beginning balance (in shares) at Sep. 30, 2023   118,846,000      
Common stock issued for employee stock-based awards 0 $ 13 (13)    
Common stock issued for employee stock-based awards (in shares)   1,216,000      
Shares surrendered by employees to pay taxes related to stock-based awards (71,874) $ (5) (71,869)    
Shares surrendered by employees to pay taxes related to stock-based awards (in shares)   (447,000)      
Common stock issued for employee stock purchase plan 12,709 $ 1 12,708    
Common stock issued for employee stock purchase plan (in shares)   102,000      
Compensation expense from stock-based awards 139,378   139,378    
Net Income (Loss) 180,832     180,832  
Gain/Loss on net investment hedges, net of tax (5,079)       (5,079)
Foreign currency translation adjustment 9,882       9,882
Change in defined benefit pension items, net of tax (6)       (6)
Ending balance at Mar. 31, 2024 2,943,132 $ 1,197 1,901,109 1,154,109 (113,283)
Ending balance (in shares) at Mar. 31, 2024   119,717,000      
Beginning balance at Dec. 31, 2023 2,806,653 $ 1,194 1,860,934 1,039,664 (95,139)
Beginning balance (in shares) at Dec. 31, 2023   119,445,000      
Common stock issued for employee stock-based awards 0 $ 3 (3)    
Common stock issued for employee stock-based awards (in shares)   266,000      
Shares surrendered by employees to pay taxes related to stock-based awards (17,538) $ (1) (17,537)    
Shares surrendered by employees to pay taxes related to stock-based awards (in shares)   (96,000)      
Common stock issued for employee stock purchase plan 12,709 $ 1 12,708    
Common stock issued for employee stock purchase plan (in shares)   102,000      
Compensation expense from stock-based awards 45,007   45,007    
Net Income (Loss) 114,445     114,445  
Gain/Loss on net investment hedges, net of tax 6,432       6,432
Foreign currency translation adjustment (24,792)       (24,792)
Change in defined benefit pension items, net of tax 216       216
Ending balance at Mar. 31, 2024 2,943,132 $ 1,197 1,901,109 1,154,109 (113,283)
Ending balance (in shares) at Mar. 31, 2024   119,717,000      
Beginning balance at Sep. 30, 2024 $ 3,214,398 $ 1,202 1,965,307 1,349,610 (101,721)
Beginning balance (in shares) at Sep. 30, 2024 120,155,000 120,155,000      
Common stock issued for employee stock-based awards $ 0 $ 8 (8)    
Common stock issued for employee stock-based awards (in shares)   810,000      
Shares surrendered by employees to pay taxes related to stock-based awards (53,321) $ (3) (53,318)    
Shares surrendered by employees to pay taxes related to stock-based awards (in shares)   (282,000)      
Common stock issued for employee stock purchase plan 13,307 $ 1 13,306    
Common stock issued for employee stock purchase plan (in shares)   89,000      
Compensation expense from stock-based awards 134,575   134,575    
Repurchases of common stock, including excise tax (150,334) $ (9) (150,325)    
Repurchases of common stock, including excise tax (in shares)   (846,000)      
Net Income (Loss) 244,876     244,876  
Gain/Loss on net investment hedges, net of tax 10,226       10,226
Foreign currency translation adjustment (27,795)       (27,795)
Change in defined benefit pension items, net of tax 531       531
Ending balance at Mar. 31, 2025 $ 3,386,463 $ 1,199 1,909,537 1,594,486 (118,759)
Ending balance (in shares) at Mar. 31, 2025 119,926,000 119,926,000      
Beginning balance at Dec. 31, 2024 $ 3,229,821 $ 1,202 1,936,411 1,431,842 (139,634)
Beginning balance (in shares) at Dec. 31, 2024   120,219,000      
Common stock issued for employee stock-based awards 0 $ 1 (1)    
Common stock issued for employee stock-based awards (in shares)   115,000      
Shares surrendered by employees to pay taxes related to stock-based awards (6,128)   (6,128)    
Shares surrendered by employees to pay taxes related to stock-based awards (in shares)   (34,000)      
Common stock issued for employee stock purchase plan 13,307 $ 1 13,306    
Common stock issued for employee stock purchase plan (in shares)   89,000      
Compensation expense from stock-based awards 41,278   41,278    
Repurchases of common stock, including excise tax (75,334) $ (5) (75,329)    
Repurchases of common stock, including excise tax (in shares)   (463,000)      
Net Income (Loss) 162,644     162,644  
Gain/Loss on net investment hedges, net of tax (15,014)       (15,014)
Foreign currency translation adjustment 36,202       36,202
Change in defined benefit pension items, net of tax (313)       (313)
Ending balance at Mar. 31, 2025 $ 3,386,463 $ 1,199 $ 1,909,537 $ 1,594,486 $ (118,759)
Ending balance (in shares) at Mar. 31, 2025 119,926,000 119,926,000      
v3.25.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Mar. 31, 2025
Mar. 31, 2024
Pay vs Performance Disclosure        
Net Income (Loss) $ 162,644 $ 114,445 $ 244,876 $ 180,832
v3.25.1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Rule 10b51 Arr Modified Flag false
Non Rule 10b51 Arr Modified Flag false
v3.25.1
Basis of Presentation
 6 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation

1. Basis of Presentation

General

The accompanying unaudited condensed consolidated financial statements include the accounts of PTC Inc. and its wholly owned subsidiaries and have been prepared by management in accordance with accounting principles generally accepted in the United States of America (GAAP) and in accordance with the rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. While we believe that the disclosures presented are adequate in order to make the information not misleading, these unaudited quarterly financial statements should be read in conjunction with our annual consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting only of those of a normal recurring nature, necessary for a fair statement of our financial position, results of operations and cash flows as of the dates and for the periods indicated. The September 30, 2024 Consolidated Balance Sheet included herein is derived from our audited consolidated financial statements.

Unless otherwise indicated, all references to a year mean our fiscal year, which ends on September 30.

In the second quarter of 2025, we changed the income statement caption of Restructuring and other charges (credits), net to Impairment and other charges (credits), net to reflect that the amounts presented are mainly impairment charges rather than restructuring charges. All charges and credits under the captioned line item remain the same.

Pending Accounting Pronouncements

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses and in January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. As clarified by ASU 2025-01, ASU 2024-03 will be effective for us in the fourth quarter of 2028. We expect the adoption to result in disclosure changes only.

Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU will be effective for us in the fourth quarter of 2026. We expect the adoption to result in disclosure changes only.

Improvements to Reportable Segment Disclosures

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The ASU will be effective for us in the fourth quarter of 2025. We expect the adoption to result in disclosure changes only.
v3.25.1
Revenue from Contracts with Customers
 6 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers

2. Revenue from Contracts with Customers

Receivables, Contract Assets and Contract Liabilities

 

(in thousands)

 

March 31, 2025

 

 

September 30, 2024

 

Short-term and long-term receivables

 

$

920,037

 

 

$

1,062,052

 

Contract asset

 

$

10,225

 

 

$

14,410

 

Deferred revenue

 

$

801,847

 

 

$

775,274

 

During the six months ended March 31, 2025, we recognized $553.3 million of revenue that was included in Deferred revenue as of September 30, 2024. The remainder of the change in the Deferred revenue balance was driven by additional deferrals, primarily from new billings, as well as a reduction in the balance resulting from changes in foreign currency exchange rates.

Our multi-year, non-cancellable on-premises subscription contracts provide customers with an annual right to exchange software within the subscription with other software. As of March 31, 2025 and September 30, 2024, our total revenue liability was $28.9 million and $26.0 million, respectively, primarily associated with the annual right to exchange on-premises subscription software.

Remaining Performance Obligations (RPO)

Our contracts with customers include amounts allocated to performance obligations that will be satisfied and recognized as revenue at a later date. The value of RPO and timing of recognition may be impacted by several factors, including the performance obligation type, duration and timing of commencement, as well as foreign currency exchange rate fluctuations. As of March 31, 2025, RPO totaled $2,280.0 million, of which $801.8 million is recorded in Deferred revenue and $1,478.2 million is not yet recorded in the Consolidated Balance Sheets. Of the total, we expect to recognize approximately 59% over the next 12 months, 24% over the next 13 to 24 months, and the remaining amount thereafter.

Disaggregation of Revenue

 

(in thousands)

 

Three months ended

 

 

Six months ended

 

 

 

March 31, 2025

 

 

March 31, 2024

 

 

March 31, 2025

 

 

March 31, 2024

 

Recurring revenue(1)

 

$

601,549

 

 

$

564,014

 

 

$

1,125,860

 

 

$

1,070,041

 

Perpetual license

 

 

5,836

 

 

 

6,753

 

 

 

15,241

 

 

 

15,193

 

Professional services

 

 

28,981

 

 

 

32,305

 

 

 

60,393

 

 

 

68,052

 

Total revenue

 

$

636,366

 

 

$

603,072

 

 

$

1,201,494

 

 

$

1,153,286

 
(1)
Recurring revenue is comprised of on-premises subscription, perpetual support, SaaS, and hosting services revenue.

We report revenue by the following two product groups:

(in thousands)

 

Three months ended

 

 

Six months ended

 

 

 

March 31, 2025

 

 

March 31, 2024

 

 

March 31, 2025

 

 

March 31, 2024

 

Product lifecycle management (PLM)

 

$

396,149

 

 

$

373,495

 

 

$

749,608

 

 

$

722,142

 

Computer-aided design (CAD)

 

 

240,217

 

 

 

229,577

 

 

 

451,886

 

 

 

431,144

 

Total revenue

 

$

636,366

 

 

$

603,072

 

 

$

1,201,494

 

 

$

1,153,286

 

 

Our international revenue is presented based on the location of our customer. Revenue for the geographic regions in which we operate is presented below.

(in thousands)

 

Three months ended

 

 

Six months ended

 

 

 

March 31, 2025

 

 

March 31, 2024

 

 

March 31, 2025

 

 

March 31, 2024

 

Americas

 

$

292,823

 

 

$

260,622

 

 

$

570,792

 

 

$

527,889

 

Europe

 

 

251,148

 

 

 

257,309

 

 

 

447,172

 

 

 

454,262

 

Asia Pacific

 

 

92,395

 

 

 

85,141

 

 

 

183,530

 

 

 

171,135

 

Total revenue

 

$

636,366

 

 

$

603,072

 

 

$

1,201,494

 

 

$

1,153,286

 
v3.25.1
Stock-based Compensation
 6 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement, Recognized Amount [Abstract]  
Stock-Based Compensation

3. Stock-based Compensation

Compensation expense recorded for our stock-based awards is classified in our Consolidated Statements of Operations as follows:

(in thousands)

 

Three months ended

 

 

Six months ended

 

 

 

March 31, 2025

 

 

March 31, 2024

 

 

March 31, 2025

 

 

March 31, 2024

 

Cost of license revenue

 

$

72

 

 

$

29

 

 

$

106

 

 

$

67

 

Cost of support and cloud services revenue

 

 

3,912

 

 

 

3,345

 

 

 

7,970

 

 

 

6,727

 

Cost of professional services revenue

 

 

1,523

 

 

 

1,660

 

 

 

3,344

 

 

 

3,329

 

Sales and marketing

 

 

13,545

 

 

 

14,729

 

 

 

31,613

 

 

 

30,856

 

Research and development

 

 

14,391

 

 

 

13,936

 

 

 

30,546

 

 

 

28,174

 

General and administrative

 

 

18,069

 

 

 

20,492

 

 

 

33,784

 

 

 

44,051

 

Total stock-based compensation expense

 

$

51,512

 

 

$

54,191

 

 

$

107,363

 

 

$

113,204

 

As of March 31, 2025 and September 30, 2024, we had liability-classified awards related to stock-based compensation based on a fixed monetary amount of $20.5 million and $47.7 million, respectively. The liability as of September 30, 2024 was settled via the issuance of shares in the first quarter of 2025.
v3.25.1
Earnings per Share (EPS) and Common Stock
 6 Months Ended
Mar. 31, 2025
Earnings Per Share And Common Stock [Abstract]  
Earnings per Share (EPS) and Common Stock

4. Earnings per Share (EPS) and Common Stock

EPS

The following table presents the calculation for both basic and diluted EPS:

(in thousands, except per share data)

 

Three months ended

 

 

Six months ended

 

 

 

March 31, 2025

 

 

March 31, 2024

 

 

March 31, 2025

 

 

March 31, 2024

 

Net income

 

$

162,644

 

 

$

114,445

 

 

$

244,876

 

 

$

180,832

 

Weighted-average shares outstanding—Basic

 

 

120,177

 

 

 

119,587

 

 

 

120,210

 

 

 

119,354

 

Dilutive effect of restricted stock units

 

 

677

 

 

 

1,125

 

 

 

790

 

 

 

1,126

 

Weighted-average shares outstanding—Diluted

 

 

120,854

 

 

 

120,712

 

 

 

121,000

 

 

 

120,480

 

Earnings per share—Basic

 

$

1.35

 

 

$

0.96

 

 

$

2.04

 

 

$

1.52

 

Earnings per share—Diluted

 

$

1.35

 

 

$

0.95

 

 

$

2.02

 

 

$

1.50

 

There were 0.3 million and 0.2 million anti-dilutive shares for the three and six months ended March 31, 2025, respectively. There were 0.1 million anti-dilutive shares for the three and six months ended March 31, 2024.

Common Stock Repurchases

Our Articles of Organization authorize us to issue up to 500 million shares of our common stock. Our Board of Directors has authorized us to repurchase up to $2 billion of our common stock in the period October 1, 2024 through September 30, 2027. In the second quarter and first six months of 2025, we repurchased 0.5 million shares for $75 million and 0.8 million shares for $150 million, respectively. We did not repurchase any shares in the second quarter and first six months of 2024. All shares of our common stock repurchased are automatically restored to the status of authorized and unissued.

v3.25.1
Acquisitions
 6 Months Ended
Mar. 31, 2025
Business Combinations [Abstract]  
Acquisitions

5. Acquisitions

Acquisition and transaction-related costs in the second quarter and first six months of 2025 totaled $0.6 million and $0.8 million, respectively, compared to $0.3 million and $2.8 million in the second quarter and first six months of 2024, respectively. These costs are classified in General and administrative expense in the accompanying Consolidated Statements of Operations.

pure-systems

On October 4, 2023, we acquired pure-systems GmbH pursuant to a Share Purchase Agreement. The purchase price was $93.5 million, net of cash acquired, which we financed primarily with a draw on the revolving line of our credit facility. The purchase price allocation resulted in $77.1 million of goodwill, $28.2 million of intangible assets, $8.8 million of net tax liabilities, and $3.0 million of other net liabilities.

ServiceMax

On January 3, 2023, we acquired ServiceMax, Inc. pursuant to a Share Purchase Agreement dated November 17, 2022 for $1,448.2 million, net of cash acquired. PTC paid the first installment of $828.2 million on the acquisition date. The remaining installment of $650.0 million, of which $620.0 million represented the fair value as of the acquisition date and $30.0 million was imputed interest, was paid in October 2023.
v3.25.1
Goodwill and Intangible Assets
 6 Months Ended
Mar. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

Goodwill and acquired intangible assets consisted of the following:

(in thousands)

 

March 31, 2025

 

 

September 30, 2024

 

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Book
Value

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Book
Value

 

Goodwill

 

 

 

 

 

 

 

$

3,444,104

 

 

 

 

 

 

 

 

$

3,461,891

 

Intangible assets with finite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased software

 

$

631,889

 

 

$

451,196

 

 

$

180,693

 

 

$

634,439

 

 

$

436,471

 

 

$

197,968

 

Capitalized software

 

 

22,877

 

 

 

22,877

 

 

 

—

 

 

 

22,877

 

 

 

22,877

 

 

 

—

 

Customer lists and relationships

 

 

1,135,655

 

 

 

475,455

 

 

 

660,200

 

 

 

1,141,086

 

 

 

457,718

 

 

 

683,368

 

Trademarks and trade names

 

 

37,780

 

 

 

22,879

 

 

 

14,901

 

 

 

37,961

 

 

 

21,821

 

 

 

16,140

 

Other

 

 

3,900

 

 

 

3,900

 

 

 

—

 

 

 

3,941

 

 

 

3,941

 

 

 

—

 

Total intangible assets with finite lives

 

$

1,832,101

 

 

$

976,307

 

 

$

855,794

 

 

$

1,840,304

 

 

$

942,828

 

 

$

897,476

 

Total goodwill and acquired intangible assets

 

 

 

 

 

 

 

$

4,299,898

 

 

 

 

 

 

 

 

$

4,359,367

 

Changes in Goodwill were as follows:

(in thousands)

 

 

Balance, October 1, 2024

$

3,461,891

 

Foreign currency translation adjustment

 

(17,787

)

Balance, March 31, 2025

$

3,444,104

 

 

The aggregate amortization expense for intangible assets with finite lives is classified in our Consolidated Statements of Operations as follows:

(in thousands)

 

Three months ended

 

 

Six months ended

 

 

 

March 31, 2025

 

 

March 31, 2024

 

 

March 31, 2025

 

 

March 31, 2024

 

Amortization of acquired intangible assets

 

$

11,380

 

 

$

10,424

 

 

$

22,820

 

 

$

20,787

 

Cost of revenue

 

 

8,131

 

 

 

9,584

 

 

 

16,431

 

 

 

19,150

 

Total amortization expense

 

$

19,511

 

 

$

20,008

 

 

$

39,251

 

 

$

39,937

 
v3.25.1
Fair Value Measurements
 6 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements

7. Fair Value Measurements

The valuation hierarchy for disclosure of assets and liabilities reported at fair value prioritizes the inputs for such valuations into three broad levels:

•
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
•
Level 2: quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; or
•
Level 3: unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value.

A financial asset's or liability's classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

Money market funds, time deposits, and corporate notes/bonds are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets.

The principal market in which we execute our foreign currency derivatives is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants are generally large financial institutions. Our foreign currency derivatives’ valuation inputs are based on quoted prices and quoted pricing intervals from public data sources and do not involve management judgment. These contracts are typically classified within Level 2 of the fair value hierarchy.

Our significant financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2025 and September 30, 2024 were as follows:

(in thousands)

 

March 31, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents(1)

 

$

73,936

 

 

$

—

 

 

$

—

 

 

$

73,936

 

Forward contracts

 

 

—

 

 

 

6,001

 

 

 

—

 

 

 

6,001

 

 

$

73,936

 

 

$

6,001

 

 

$

—

 

 

$

79,937

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Forward contracts

 

 

—

 

 

 

4,286

 

 

 

—

 

 

 

4,286

 

 

$

—

 

 

$

4,286

 

 

$

—

 

 

$

4,286

 

 

(in thousands)

 

September 30, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents(1)

 

$

48,509

 

 

$

—

 

 

$

—

 

 

$

48,509

 

Forward contracts

 

 

—

 

 

 

1,202

 

 

 

—

 

 

 

1,202

 

 

$

48,509

 

 

$

1,202

 

 

$

—

 

 

$

49,711

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Forward contracts

 

 

—

 

 

 

4,166

 

 

 

—

 

 

 

4,166

 

 

$

—

 

 

$

4,166

 

 

$

—

 

 

$

4,166

 
(1)
Money market funds and time deposits.

Level 3 Investments

Convertible Note

In the fourth quarter of 2021, we invested $2.0 million in a non-marketable convertible note. This debt security was classified as available-for-sale and included in Other assets on the Consolidated Balance Sheet. During the three months ended March 31, 2024, we recorded a $2.0 million impairment loss related to this Level 3 investment. The impairment loss is included in Other income (expense), net on the Consolidated Statements of Operations.
v3.25.1
Derivative Financial Instruments
 6 Months Ended
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

8. Derivative Financial Instruments

We enter into foreign currency forward contracts to manage our exposure to foreign currency exchange risk to reduce earnings volatility. We do not enter into derivative transactions for trading or speculative purposes.

The following table shows our derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheets:

(in thousands)

 

Fair Value of Derivatives Designated As Hedging Instruments

 

 

Fair Value of Derivatives Not Designated As Hedging Instruments

 

 

 

March 31, 2025

 

 

September 30, 2024

 

 

March 31, 2025

 

 

September 30, 2024

 

Derivative assets(1):

 

 

 

 

 

 

 

 

 

 

 

 

Forward contracts

 

$

3,170

 

 

$

181

 

 

$

2,831

 

 

$

1,021

 

Derivative liabilities(2):

 

 

 

 

 

 

 

 

 

 

 

 

Forward contracts

 

$

—

 

 

$

630

 

 

$

4,286

 

 

$

3,536

 
(1)
As of March 31, 2025 and September 30, 2024, current derivative assets are recorded in Other current assets in the Consolidated Balance Sheets.
(2)
As of March 31, 2025 and September 30, 2024, current derivative liabilities are recorded in Accrued expenses and other current liabilities in the Consolidated Balance Sheets.

Non-Designated Hedges

We hedge our net foreign currency monetary assets and liabilities primarily resulting from foreign currency denominated receivables and payables with foreign exchange forward contracts to reduce the risk that our earnings and cash flows will be adversely affected by changes in foreign currency exchange rates. These contracts have maturities of up to approximately three months. Generally, we do not designate these foreign currency forward contracts as hedges for accounting purposes and changes in the fair value of these instruments are recognized immediately in earnings. Because we enter into forward contracts only as an economic hedge, gains or losses on the underlying foreign-denominated balance are generally offset by the losses or gains on the forward contract. Gains and losses on forward contracts and foreign denominated receivables and payables are included in Other income (expense), net.

As of March 31, 2025 and September 30, 2024, we had outstanding forward contracts not designated as hedging instruments with notional amounts equivalent to the following:

Currency Hedged (in thousands)

 

March 31, 2025

 

 

September 30, 2024

 

Euro / U.S. Dollar

 

$

764,722

 

 

$

781,398

 

British Pound / U.S. Dollar

 

 

16,391

 

 

 

24,810

 

Israeli Shekel / U.S. Dollar

 

 

13,615

 

 

 

12,535

 

Japanese Yen / U.S. Dollar

 

 

27,008

 

 

 

42,340

 

Swiss Franc / U.S. Dollar

 

 

5,319

 

 

 

74,939

 

Swedish Krona / U.S. Dollar

 

 

16,036

 

 

 

48,596

 

Chinese Renminbi / U.S. Dollar

 

 

3,891

 

 

 

32,124

 

New Taiwan Dollar / U.S. Dollar

 

 

6,501

 

 

 

16,368

 

All other

 

 

19,551

 

 

 

25,368

 

Total

 

$

873,034

 

 

$

1,058,478

 

The following table shows the effect of our non-designated hedges on the Consolidated Statements of Operations for the three and six months ended March 31, 2025 and March 31, 2024:

 (in thousands)

 

 

 

Three months ended

 

 

Six months ended

 

 

 

Location of Gain (Loss)

 

March 31, 2025

 

 

March 31, 2024

 

 

March 31, 2025

 

 

March 31, 2024

 

Net realized and unrealized loss, excluding the underlying foreign currency exposure being hedged

 

Other income (expense), net

 

$

(917

)

 

$

(1,286

)

 

$

(360

)

 

$

(5,022

)

In the three months ended March 31, 2025, total foreign currency gains, net were $0.1 million. In the three months ended March 31, 2024, total foreign currency losses, net were $1.1 million. In the six months ended March 31, 2025 and March 31, 2024, total foreign currency losses, net were $1.1 million and $0.1 million, respectively.

Net Investment Hedges

We translate balance sheet accounts of subsidiaries with foreign functional currencies into the U.S. Dollar using the exchange rate at each balance sheet date. Resulting translation adjustments are reported as a component of Accumulated other comprehensive loss on the Consolidated Balance Sheets. We designate certain foreign exchange forward contracts as net investment hedges against exposure on translation of balance sheet accounts of Euro and Japanese Yen functional subsidiaries. Net investment hedges partially offset the impact of Foreign currency translation adjustment recorded in Accumulated other comprehensive loss on the Consolidated Balance Sheets. All foreign exchange forward contracts are carried at fair value on the Consolidated Balance Sheets and the maximum duration of net investment hedge foreign exchange forward contracts is approximately three months.

Net investment hedge relationships are designated at inception, and effectiveness is assessed retrospectively on a quarterly basis using the net equity position of Euro and Japanese Yen functional subsidiaries. As the forward contracts are highly effective in offsetting exchange rate exposure, we record changes in these net investment hedges in Accumulated other comprehensive loss. Changes in the fair value of foreign exchange forward contracts due to changes in time value are excluded from the assessment of effectiveness. Our derivatives are not subject to any credit contingent features. We manage credit risk with counterparties by trading among several counterparties and we review our counterparties’ credit at least quarterly.

As of March 31, 2025 and September 30, 2024, we had outstanding forward contracts designated as net investment hedges with notional amounts equivalent to the following:

Currency Hedged (in thousands)

 

March 31, 2025

 

 

September 30, 2024

 

Euro / U.S. Dollar

 

$

443,398

 

 

$

462,894

 

Japanese Yen / U.S. Dollar

 

 

10,102

 

 

 

10,739

 

Total

 

$

453,500

 

 

$

473,633

 

 

The following table shows the effect of our derivative instruments designated as net investment hedges in the Consolidated Statements of Operations for the three and six months ended March 31, 2025 and March 31, 2024:

(in thousands)

 

 

 

Three months ended

 

 

Six months ended

 

 

 

Location of Gain (Loss)

 

March 31, 2025

 

 

March 31, 2024

 

 

March 31, 2025

 

 

March 31, 2024

 

Gain (loss) recognized in Other comprehensive income (loss) ("OCI")

 

OCI

 

$

(19,898

)

 

$

8,552

 

 

$

13,550

 

 

$

(6,752

)

Gain (loss) reclassified from OCI to earnings

 

n/a

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Gain recognized, excluded portion

 

Other income (expense), net

 

$

1,254

 

 

$

1,079

 

 

$

2,329

 

 

$

2,215

 

As of March 31, 2025, we estimate that all amounts reported in Accumulated other comprehensive loss will be applied against exposed balance sheet accounts upon translation within the next three months.

Offsetting Derivative Assets and Liabilities

We have entered into master netting arrangements for our forward contracts that allow net settlements under certain conditions. Although netting is permitted, it is currently our policy and practice to record all derivative assets and liabilities on a gross basis in the Consolidated Balance Sheets.

The following table sets forth the offsetting of derivative assets as of March 31, 2025:

(in thousands)

 

Gross Amounts Offset in the Consolidated Balance Sheets

 

 

 

 

 

Gross Amounts Not Offset in the Consolidated Balance Sheets

 

 

 

 

As of March 31, 2025

 

Gross
Amount of
Recognized
Assets

 

 

Gross
Amounts
Offset in the
Consolidated
Balance
Sheets

 

 

Net Amounts of
Assets
Presented in
the
Consolidated
Balance Sheets

 

 

Financial
Instruments

 

 

Cash
Collateral
Received

 

 

Net
Amount

 

Forward contracts

 

$

6,001

 

 

$

—

 

 

$

6,001

 

 

$

(4,286

)

 

$

—

 

 

$

1,715

 

 

The following table sets forth the offsetting of derivative liabilities as of March 31, 2025:

(in thousands)

 

Gross Amounts Offset in the Consolidated Balance Sheets

 

 

 

 

 

Gross Amounts Not Offset in the Consolidated Balance Sheets

 

 

 

 

As of March 31, 2025

 

Gross
Amount of
Recognized
Liabilities

 

 

Gross
Amounts
Offset in the
Consolidated
Balance
Sheets

 

 

Net Amounts of
Liabilities
Presented in
the
Consolidated
Balance Sheets

 

 

Financial
Instruments

 

 

Cash
Collateral
Pledged

 

 

Net
Amount

 

Forward contracts

 

$

4,286

 

 

$

—

 

 

$

4,286

 

 

$

(4,286

)

 

$

—

 

 

$

—

 
v3.25.1
Income Taxes
 6 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes

9. Income Taxes

(in thousands)

 

Three months ended

 

 

Six months ended

 

 

 

March 31, 2025

 

 

March 31, 2024

 

 

March 31, 2025

 

 

March 31, 2024

 

Income before income taxes

 

$

205,249

 

 

$

145,745

 

 

$

298,403

 

 

$

231,344

 

Provision for income taxes

 

$

42,605

 

 

$

31,300

 

 

$

53,527

 

 

$

50,512

 

Effective income tax rate

 

 

21

%

 

 

21

%

 

 

18

%

 

 

22

%

The effective tax rate for the six months ended March 31, 2025 was lower than the effective tax rate for the corresponding prior-year period primarily due to changes in the geographic mix of income before taxes. Additionally, for the six months ended March 31, 2025 and March 31, 2024, rates were impacted by a benefit of $10.4 million and an expense of $3.6 million, respectively, associated with the impact of changes in tax reserves related to prior years in foreign jurisdictions.

In the normal course of business, PTC and its subsidiaries are examined by various taxing authorities, including the Internal Revenue Service in the U.S. We regularly assess the likelihood of additional assessments by tax authorities and provide for these matters as appropriate. We are currently under audit by tax authorities in several jurisdictions. Audits by tax authorities typically involve examination of the deductibility of certain permanent items, transfer pricing, limitations on net operating losses and tax credits.

As of March 31, 2025 and September 30, 2024, we had unrecognized tax benefits of $42.5 million and $65.0 million, respectively. If all our unrecognized tax benefits as of March 31, 2025 were to become recognizable in the future, we would record a benefit to the income tax provision of $42.5 million, which would be partially offset by an increase in the U.S. valuation allowance of $6.5 million.

Although we believe our tax estimates are appropriate, the final determination of tax audits and any related litigation could result in favorable or unfavorable changes in our estimates. We believe it is reasonably possible that within the next 12 months the amount of unrecognized tax benefits related to the resolution of multi-jurisdictional tax positions could be reduced by up to $1 million.
v3.25.1
Debt
 6 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Debt

10. Debt

As of March 31, 2025 and September 30, 2024, we had the following debt obligations:

(in thousands)

 

March 31, 2025

 

 

September 30, 2024

 

4.000% Senior notes due 2028

 

$

500,000

 

 

$

500,000

 

3.625% Senior notes due 2025

 

 

—

 

 

 

500,000

 

Credit facility revolver line(1)(2)

 

 

411,250

 

 

 

262,000

 

Credit facility term loan(1)(2)

 

 

481,250

 

 

 

490,625

 

Total debt

 

 

1,392,500

 

 

 

1,752,625

 

Unamortized debt issuance costs for the senior notes(3)

 

 

(3,107

)

 

 

(4,053

)

Total debt, net of issuance costs(4)

 

$

1,389,393

 

 

$

1,748,572

 
(1)
Unamortized debt issuance costs related to the credit facility were $2.7 million included in Other current assets and $4.7 million included in Other assets on the Consolidated Balance Sheet as of March 31, 2025 and $2.3 million included in Other current assets and $5.2 million included in Other assets on the Consolidated Balance Sheet as of September 30, 2024.
(2)
The stated maturity date under the credit facility on which both the revolver line and the term loan will mature and all amounts then outstanding will become due and payable is January 3, 2028. The term loan began amortizing in March 2024, with payments of $12.5 million remaining in 2025, $25.0 million in 2026 and 2027, and $418.7 million in 2028.
(3)
As of March 31, 2025, all unamortized debt issuance costs for the senior notes were included in Long-term debt on the Consolidated Balance Sheet. As of September 30, 2024, $0.4 million of unamortized debt issuance costs for the senior notes was included in Current portion of long-term debt and $3.6 million was included in Long-term debt on the Consolidated Balance Sheet.
(4)
As of March 31, 2025, $25.0 million of debt associated with the credit facility term loan was classified as short term. As of September 30, 2024, $521.5 million of debt was classified as short term, including $499.6 million associated with the 2025 senior notes and related debt issuance costs and $21.9 million associated with the credit facility term loan.

Senior Unsecured Notes

In February 2020, we issued $500 million in aggregate principal amount of 4.0% senior, unsecured long-term debt at par value, due in 2028 (the 2028 notes) and $500 million in aggregate principal amount of 3.625% senior, unsecured long-term debt at par value, due in February 2025 (the 2025 notes). In the second quarter of 2025, we redeemed the 2025 notes using a draw on our revolving credit facility and cash on hand.

As of March 31, 2025, the total estimated fair value of the 2028 notes was approximately $481.3 million based on quoted prices for the notes on that date.

We were in compliance with all the covenants for our senior notes as of March 31, 2025.

Credit Agreement

Our credit facility consists of (i) a $1.25 billion revolving credit facility, (ii) a $500 million term loan credit facility, and (iii) an incremental facility pursuant to which we may incur additional term loan tranches or increase the revolving credit facility. On October 1, 2024, we entered into an amendment to our credit facility which removed a repayment obligation as of November 16, 2024 in the event that the 2025 notes had not been redeemed or refinanced as of that date.

As of March 31, 2025, unused commitments under our credit facility were $838.8 million and amounts available for borrowing were $823.3 million.

As of March 31, 2025, the fair value of our credit facility approximates its book value.

PTC and certain eligible foreign subsidiaries are eligible borrowers under the credit facility. As of March 31, 2025, $241.3 million was borrowed by an eligible foreign subsidiary borrower.

Loans under the credit facility bear interest at variable rates. As of March 31, 2025, the annual rate for borrowings outstanding was 5.9%. A quarterly revolving commitment fee on the undrawn portion of the revolving credit facility is required, ranging from 0.175% to 0.325% per annum, based upon our total leverage ratio.

As of March 31, 2025, we were in compliance with all financial and operating covenants of the credit facility.

Interest

We incurred interest expense on our debt of $19.6 million and $41.7 million in the second quarter and first six months of 2025, respectively, and $31.6 million and $66.9 million in the second quarter and first six months of 2024, respectively. The average interest rate on borrowings outstanding was approximately 4.9% and 4.8% during the second quarter and first six months of 2025, respectively, and 5.5% and 5.6% during the second quarter and first six months of 2024.
v3.25.1
Commitments and Contingencies
 6 Months Ended
Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

11. Commitments and Contingencies

Guarantees and Indemnification Obligations

We enter into standard indemnification agreements with our customers and business partners in the ordinary course of our business. Under such agreements, we typically indemnify, hold harmless, and agree to reimburse the indemnified party for losses suffered or incurred by the indemnified party, in connection with patent, copyright or other intellectual property infringement claims by any third party with respect to our products. Indemnification may also cover other types of claims, including claims relating to certain data breaches. These agreements typically limit our liability with respect to indemnification claims other than intellectual property infringement claims. Historically, our costs to defend lawsuits or settle claims relating to such indemnity agreements have been minimal and, accordingly, we believe the estimated fair value of liabilities under these agreements is immaterial.

We warrant that our software products will perform in all material respects in accordance with our standard published specifications during the term of the license. Additionally, we generally warrant that our consulting services will be performed consistent with generally accepted industry standards and, in the case of fixed price services, the agreed-upon specifications. In most cases, liability for these warranties is capped. If necessary, we would provide for the estimated cost of product and service warranties based on specific warranty claims and claim history; however, we have not incurred significant cost under our product or services warranties. As a result, we believe the estimated fair value of these liabilities is immaterial.
v3.25.1
Revenue from Contracts with Customers (Tables)
 6 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Schedule of Receivables, Contract Assets and Liabilities

Receivables, Contract Assets and Contract Liabilities

 

(in thousands)

 

March 31, 2025

 

 

September 30, 2024

 

Short-term and long-term receivables

 

$

920,037

 

 

$

1,062,052

 

Contract asset

 

$

10,225

 

 

$

14,410

 

Deferred revenue

 

$

801,847

 

 

$

775,274

 
Disaggregation of Revenue

Disaggregation of Revenue

 

(in thousands)

 

Three months ended

 

 

Six months ended

 

 

 

March 31, 2025

 

 

March 31, 2024

 

 

March 31, 2025

 

 

March 31, 2024

 

Recurring revenue(1)

 

$

601,549

 

 

$

564,014

 

 

$

1,125,860

 

 

$

1,070,041

 

Perpetual license

 

 

5,836

 

 

 

6,753

 

 

 

15,241

 

 

 

15,193

 

Professional services

 

 

28,981

 

 

 

32,305

 

 

 

60,393

 

 

 

68,052

 

Total revenue

 

$

636,366

 

 

$

603,072

 

 

$

1,201,494

 

 

$

1,153,286

 
(1)
Recurring revenue is comprised of on-premises subscription, perpetual support, SaaS, and hosting services revenue.
Summary of Revenue and Profit Attributable to Product Groups

We report revenue by the following two product groups:

(in thousands)

 

Three months ended

 

 

Six months ended

 

 

 

March 31, 2025

 

 

March 31, 2024

 

 

March 31, 2025

 

 

March 31, 2024

 

Product lifecycle management (PLM)

 

$

396,149

 

 

$

373,495

 

 

$

749,608

 

 

$

722,142

 

Computer-aided design (CAD)

 

 

240,217

 

 

 

229,577

 

 

 

451,886

 

 

 

431,144

 

Total revenue

 

$

636,366

 

 

$

603,072

 

 

$

1,201,494

 

 

$

1,153,286

 

 
Summary of Revenue for Geographic Regions

Our international revenue is presented based on the location of our customer. Revenue for the geographic regions in which we operate is presented below.

(in thousands)

 

Three months ended

 

 

Six months ended

 

 

 

March 31, 2025

 

 

March 31, 2024

 

 

March 31, 2025

 

 

March 31, 2024

 

Americas

 

$

292,823

 

 

$

260,622

 

 

$

570,792

 

 

$

527,889

 

Europe

 

 

251,148

 

 

 

257,309

 

 

 

447,172

 

 

 

454,262

 

Asia Pacific

 

 

92,395

 

 

 

85,141

 

 

 

183,530

 

 

 

171,135

 

Total revenue

 

$

636,366

 

 

$

603,072

 

 

$

1,201,494

 

 

$

1,153,286

 
v3.25.1
Stock-based Compensation (Tables)
 6 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement, Recognized Amount [Abstract]  
Schedule of Classification of Compensation Expense

Compensation expense recorded for our stock-based awards is classified in our Consolidated Statements of Operations as follows:

(in thousands)

 

Three months ended

 

 

Six months ended

 

 

 

March 31, 2025

 

 

March 31, 2024

 

 

March 31, 2025

 

 

March 31, 2024

 

Cost of license revenue

 

$

72

 

 

$

29

 

 

$

106

 

 

$

67

 

Cost of support and cloud services revenue

 

 

3,912

 

 

 

3,345

 

 

 

7,970

 

 

 

6,727

 

Cost of professional services revenue

 

 

1,523

 

 

 

1,660

 

 

 

3,344

 

 

 

3,329

 

Sales and marketing

 

 

13,545

 

 

 

14,729

 

 

 

31,613

 

 

 

30,856

 

Research and development

 

 

14,391

 

 

 

13,936

 

 

 

30,546

 

 

 

28,174

 

General and administrative

 

 

18,069

 

 

 

20,492

 

 

 

33,784

 

 

 

44,051

 

Total stock-based compensation expense

 

$

51,512

 

 

$

54,191

 

 

$

107,363

 

 

$

113,204

 
v3.25.1
Earnings per Share (EPS) and Common Stock (Tables)
 6 Months Ended
Mar. 31, 2025
Earnings Per Share And Common Stock [Abstract]  
Earnings Per Share Basic and Diluted

The following table presents the calculation for both basic and diluted EPS:

(in thousands, except per share data)

 

Three months ended

 

 

Six months ended

 

 

 

March 31, 2025

 

 

March 31, 2024

 

 

March 31, 2025

 

 

March 31, 2024

 

Net income

 

$

162,644

 

 

$

114,445

 

 

$

244,876

 

 

$

180,832

 

Weighted-average shares outstanding—Basic

 

 

120,177

 

 

 

119,587

 

 

 

120,210

 

 

 

119,354

 

Dilutive effect of restricted stock units

 

 

677

 

 

 

1,125

 

 

 

790

 

 

 

1,126

 

Weighted-average shares outstanding—Diluted

 

 

120,854

 

 

 

120,712

 

 

 

121,000

 

 

 

120,480

 

Earnings per share—Basic

 

$

1.35

 

 

$

0.96

 

 

$

2.04

 

 

$

1.52

 

Earnings per share—Diluted

 

$

1.35

 

 

$

0.95

 

 

$

2.02

 

 

$

1.50

 
v3.25.1
Goodwill and Intangible Assets (Tables)
 6 Months Ended
Mar. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill and Acquired Intangible Assets

Goodwill and acquired intangible assets consisted of the following:

(in thousands)

 

March 31, 2025

 

 

September 30, 2024

 

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Book
Value

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net Book
Value

 

Goodwill

 

 

 

 

 

 

 

$

3,444,104

 

 

 

 

 

 

 

 

$

3,461,891

 

Intangible assets with finite lives:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased software

 

$

631,889

 

 

$

451,196

 

 

$

180,693

 

 

$

634,439

 

 

$

436,471

 

 

$

197,968

 

Capitalized software

 

 

22,877

 

 

 

22,877

 

 

 

—

 

 

 

22,877

 

 

 

22,877

 

 

 

—

 

Customer lists and relationships

 

 

1,135,655

 

 

 

475,455

 

 

 

660,200

 

 

 

1,141,086

 

 

 

457,718

 

 

 

683,368

 

Trademarks and trade names

 

 

37,780

 

 

 

22,879

 

 

 

14,901

 

 

 

37,961

 

 

 

21,821

 

 

 

16,140

 

Other

 

 

3,900

 

 

 

3,900

 

 

 

—

 

 

 

3,941

 

 

 

3,941

 

 

 

—

 

Total intangible assets with finite lives

 

$

1,832,101

 

 

$

976,307

 

 

$

855,794

 

 

$

1,840,304

 

 

$

942,828

 

 

$

897,476

 

Total goodwill and acquired intangible assets

 

 

 

 

 

 

 

$

4,299,898

 

 

 

 

 

 

 

 

$

4,359,367

 
Schedule of Changes in Goodwill by Reportable Segments

Changes in Goodwill were as follows:

(in thousands)

 

 

Balance, October 1, 2024

$

3,461,891

 

Foreign currency translation adjustment

 

(17,787

)

Balance, March 31, 2025

$

3,444,104

 

 
Schedule of Aggregate Amortization Expense for Intangible Assets with Finite Lives

The aggregate amortization expense for intangible assets with finite lives is classified in our Consolidated Statements of Operations as follows:

(in thousands)

 

Three months ended

 

 

Six months ended

 

 

 

March 31, 2025

 

 

March 31, 2024

 

 

March 31, 2025

 

 

March 31, 2024

 

Amortization of acquired intangible assets

 

$

11,380

 

 

$

10,424

 

 

$

22,820

 

 

$

20,787

 

Cost of revenue

 

 

8,131

 

 

 

9,584

 

 

 

16,431

 

 

 

19,150

 

Total amortization expense

 

$

19,511

 

 

$

20,008

 

 

$

39,251

 

 

$

39,937

 
v3.25.1
Fair Value Measurements (Tables)
 6 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value, by Balance Sheet Grouping

Our significant financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2025 and September 30, 2024 were as follows:

(in thousands)

 

March 31, 2025

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents(1)

 

$

73,936

 

 

$

—

 

 

$

—

 

 

$

73,936

 

Forward contracts

 

 

—

 

 

 

6,001

 

 

 

—

 

 

 

6,001

 

 

$

73,936

 

 

$

6,001

 

 

$

—

 

 

$

79,937

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Forward contracts

 

 

—

 

 

 

4,286

 

 

 

—

 

 

 

4,286

 

 

$

—

 

 

$

4,286

 

 

$

—

 

 

$

4,286

 

 

(in thousands)

 

September 30, 2024

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Financial assets:

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents(1)

 

$

48,509

 

 

$

—

 

 

$

—

 

 

$

48,509

 

Forward contracts

 

 

—

 

 

 

1,202

 

 

 

—

 

 

 

1,202

 

 

$

48,509

 

 

$

1,202

 

 

$

—

 

 

$

49,711

 

Financial liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Forward contracts

 

 

—

 

 

 

4,166

 

 

 

—

 

 

 

4,166

 

 

$

—

 

 

$

4,166

 

 

$

—

 

 

$

4,166

 
(1)
Money market funds and time deposits.
v3.25.1
Derivative Financial Instruments (Tables)
 6 Months Ended
Mar. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table shows our derivative instruments measured at gross fair value as reflected in the Consolidated Balance Sheets:

(in thousands)

 

Fair Value of Derivatives Designated As Hedging Instruments

 

 

Fair Value of Derivatives Not Designated As Hedging Instruments

 

 

 

March 31, 2025

 

 

September 30, 2024

 

 

March 31, 2025

 

 

September 30, 2024

 

Derivative assets(1):

 

 

 

 

 

 

 

 

 

 

 

 

Forward contracts

 

$

3,170

 

 

$

181

 

 

$

2,831

 

 

$

1,021

 

Derivative liabilities(2):

 

 

 

 

 

 

 

 

 

 

 

 

Forward contracts

 

$

—

 

 

$

630

 

 

$

4,286

 

 

$

3,536

 
(1)
As of March 31, 2025 and September 30, 2024, current derivative assets are recorded in Other current assets in the Consolidated Balance Sheets.
(2)
As of March 31, 2025 and September 30, 2024, current derivative liabilities are recorded in Accrued expenses and other current liabilities in the Consolidated Balance Sheets.
Schedule of Notional Amounts of Outstanding Forward Contracts and Options

As of March 31, 2025 and September 30, 2024, we had outstanding forward contracts not designated as hedging instruments with notional amounts equivalent to the following:

Currency Hedged (in thousands)

 

March 31, 2025

 

 

September 30, 2024

 

Euro / U.S. Dollar

 

$

764,722

 

 

$

781,398

 

British Pound / U.S. Dollar

 

 

16,391

 

 

 

24,810

 

Israeli Shekel / U.S. Dollar

 

 

13,615

 

 

 

12,535

 

Japanese Yen / U.S. Dollar

 

 

27,008

 

 

 

42,340

 

Swiss Franc / U.S. Dollar

 

 

5,319

 

 

 

74,939

 

Swedish Krona / U.S. Dollar

 

 

16,036

 

 

 

48,596

 

Chinese Renminbi / U.S. Dollar

 

 

3,891

 

 

 

32,124

 

New Taiwan Dollar / U.S. Dollar

 

 

6,501

 

 

 

16,368

 

All other

 

 

19,551

 

 

 

25,368

 

Total

 

$

873,034

 

 

$

1,058,478

 

As of March 31, 2025 and September 30, 2024, we had outstanding forward contracts designated as net investment hedges with notional amounts equivalent to the following:

Currency Hedged (in thousands)

 

March 31, 2025

 

 

September 30, 2024

 

Euro / U.S. Dollar

 

$

443,398

 

 

$

462,894

 

Japanese Yen / U.S. Dollar

 

 

10,102

 

 

 

10,739

 

Total

 

$

453,500

 

 

$

473,633

 
Schedule of Net Gains and Losses on Foreign Currency Exposures

The following table shows the effect of our non-designated hedges on the Consolidated Statements of Operations for the three and six months ended March 31, 2025 and March 31, 2024:

 (in thousands)

 

 

 

Three months ended

 

 

Six months ended

 

 

 

Location of Gain (Loss)

 

March 31, 2025

 

 

March 31, 2024

 

 

March 31, 2025

 

 

March 31, 2024

 

Net realized and unrealized loss, excluding the underlying foreign currency exposure being hedged

 

Other income (expense), net

 

$

(917

)

 

$

(1,286

)

 

$

(360

)

 

$

(5,022

)

The following table shows the effect of our derivative instruments designated as net investment hedges in the Consolidated Statements of Operations for the three and six months ended March 31, 2025 and March 31, 2024:

(in thousands)

 

 

 

Three months ended

 

 

Six months ended

 

 

 

Location of Gain (Loss)

 

March 31, 2025

 

 

March 31, 2024

 

 

March 31, 2025

 

 

March 31, 2024

 

Gain (loss) recognized in Other comprehensive income (loss) ("OCI")

 

OCI

 

$

(19,898

)

 

$

8,552

 

 

$

13,550

 

 

$

(6,752

)

Gain (loss) reclassified from OCI to earnings

 

n/a

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Gain recognized, excluded portion

 

Other income (expense), net

 

$

1,254

 

 

$

1,079

 

 

$

2,329

 

 

$

2,215

 
Schedule of Offsetting Assets

The following table sets forth the offsetting of derivative assets as of March 31, 2025:

(in thousands)

 

Gross Amounts Offset in the Consolidated Balance Sheets

 

 

 

 

 

Gross Amounts Not Offset in the Consolidated Balance Sheets

 

 

 

 

As of March 31, 2025

 

Gross
Amount of
Recognized
Assets

 

 

Gross
Amounts
Offset in the
Consolidated
Balance
Sheets

 

 

Net Amounts of
Assets
Presented in
the
Consolidated
Balance Sheets

 

 

Financial
Instruments

 

 

Cash
Collateral
Received

 

 

Net
Amount

 

Forward contracts

 

$

6,001

 

 

$

—

 

 

$

6,001

 

 

$

(4,286

)

 

$

—

 

 

$

1,715

 

 
Schedule of Offsetting Liabilities

The following table sets forth the offsetting of derivative liabilities as of March 31, 2025:

(in thousands)

 

Gross Amounts Offset in the Consolidated Balance Sheets

 

 

 

 

 

Gross Amounts Not Offset in the Consolidated Balance Sheets

 

 

 

 

As of March 31, 2025

 

Gross
Amount of
Recognized
Liabilities

 

 

Gross
Amounts
Offset in the
Consolidated
Balance
Sheets

 

 

Net Amounts of
Liabilities
Presented in
the
Consolidated
Balance Sheets

 

 

Financial
Instruments

 

 

Cash
Collateral
Pledged

 

 

Net
Amount

 

Forward contracts

 

$

4,286

 

 

$

—

 

 

$

4,286

 

 

$

(4,286

)

 

$

—

 

 

$

—

 
v3.25.1
Income Taxes (Tables)
 6 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Summary of Income Taxes

(in thousands)

 

Three months ended

 

 

Six months ended

 

 

 

March 31, 2025

 

 

March 31, 2024

 

 

March 31, 2025

 

 

March 31, 2024

 

Income before income taxes

 

$

205,249

 

 

$

145,745

 

 

$

298,403

 

 

$

231,344

 

Provision for income taxes

 

$

42,605

 

 

$

31,300

 

 

$

53,527

 

 

$

50,512

 

Effective income tax rate

 

 

21

%

 

 

21

%

 

 

18

%

 

 

22

%

The effective tax rate for the six months ended March 31, 2025 was lower than the effective tax rate for the corresponding prior-year period primarily due to changes in the geographic mix of income before taxes. Additionally, for the six months ended March 31, 2025 and March 31, 2024, rates were impacted by a benefit of $10.4 million and an expense of $3.6 million, respectively, associated with the impact of changes in tax reserves related to prior years in foreign jurisdictions.
v3.25.1
Debt (Tables)
 6 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Obligations

As of March 31, 2025 and September 30, 2024, we had the following debt obligations:

(in thousands)

 

March 31, 2025

 

 

September 30, 2024

 

4.000% Senior notes due 2028

 

$

500,000

 

 

$

500,000

 

3.625% Senior notes due 2025

 

 

—

 

 

 

500,000

 

Credit facility revolver line(1)(2)

 

 

411,250

 

 

 

262,000

 

Credit facility term loan(1)(2)

 

 

481,250

 

 

 

490,625

 

Total debt

 

 

1,392,500

 

 

 

1,752,625

 

Unamortized debt issuance costs for the senior notes(3)

 

 

(3,107

)

 

 

(4,053

)

Total debt, net of issuance costs(4)

 

$

1,389,393

 

 

$

1,748,572

 
(1)
Unamortized debt issuance costs related to the credit facility were $2.7 million included in Other current assets and $4.7 million included in Other assets on the Consolidated Balance Sheet as of March 31, 2025 and $2.3 million included in Other current assets and $5.2 million included in Other assets on the Consolidated Balance Sheet as of September 30, 2024.
(2)
The stated maturity date under the credit facility on which both the revolver line and the term loan will mature and all amounts then outstanding will become due and payable is January 3, 2028. The term loan began amortizing in March 2024, with payments of $12.5 million remaining in 2025, $25.0 million in 2026 and 2027, and $418.7 million in 2028.
(3)
As of March 31, 2025, all unamortized debt issuance costs for the senior notes were included in Long-term debt on the Consolidated Balance Sheet. As of September 30, 2024, $0.4 million of unamortized debt issuance costs for the senior notes was included in Current portion of long-term debt and $3.6 million was included in Long-term debt on the Consolidated Balance Sheet.
(4)
As of March 31, 2025, $25.0 million of debt associated with the credit facility term loan was classified as short term. As of September 30, 2024, $521.5 million of debt was classified as short term, including $499.6 million associated with the 2025 senior notes and related debt issuance costs and $21.9 million associated with the credit facility term loan.
v3.25.1
Revenue from Contracts with Customers - Schedule of Contract Assets and Contract Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]    
Short-term and long-term receivables $ 920,037 $ 1,062,052
Contract asset 10,225 14,410
Deferred revenue $ 801,847 $ 775,274
v3.25.1
Revenue from Contracts with Customers - Additional Information (Details) - USD ($)
$ in Thousands
 6 Months Ended
Mar. 31, 2025
Sep. 30, 2024
Revenue from External Customer [Line Items]    
Deferred revenue, revenue recognized $ 553,300  
Deferred revenue 801,847 $ 775,274
Refund liability 28,900 $ 26,000
Revenue, remaining performance obligation, amount 2,280,000  
Unrecorded    
Revenue from External Customer [Line Items]    
Revenue, remaining performance obligation, amount $ 1,478,200  
v3.25.1
Revenue from Contracts with Customers - Remaining Performance Obligations - Additional Information (Details)
Mar. 31, 2025
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-04-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Revenue, remaining performance obligation, expected timing of satisfaction, percentage 59.00%
Revenue, remaining performance obligation, expected timing of satisfaction, period 12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-04-01  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Revenue, remaining performance obligation, expected timing of satisfaction, percentage 24.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-04-01 | Maximum  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Revenue, remaining performance obligation, expected timing of satisfaction, period 24 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2026-04-01 | Minimum  
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]  
Revenue, remaining performance obligation, expected timing of satisfaction, period 13 months
v3.25.1
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Mar. 31, 2025
Mar. 31, 2024
Disaggregation Of Revenue [Line Items]        
Revenue $ 636,366 $ 603,072 $ 1,201,494 $ 1,153,286
Recurring revenue        
Disaggregation Of Revenue [Line Items]        
Revenue [1] 601,549 564,014 1,125,860 1,070,041
Perpetual license        
Disaggregation Of Revenue [Line Items]        
Revenue 5,836 6,753 15,241 15,193
Professional services        
Disaggregation Of Revenue [Line Items]        
Professional services $ 28,981 $ 32,305 $ 60,393 $ 68,052
[1] Recurring revenue is comprised of on-premises subscription, perpetual support, SaaS, and hosting services revenue.
v3.25.1
Revenue from Contracts with Customers - Summary of Revenue and Profit Attributable to Product Groups (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Mar. 31, 2025
Mar. 31, 2024
Revenue from External Customer [Line Items]        
Total revenue $ 636,366 $ 603,072 $ 1,201,494 $ 1,153,286
Product lifecycle management (PLM)        
Revenue from External Customer [Line Items]        
Total revenue 396,149 373,495 749,608 722,142
Computer-aided design (CAD)        
Revenue from External Customer [Line Items]        
Total revenue $ 240,217 $ 229,577 $ 451,886 $ 431,144
v3.25.1
Revenue from Contracts with Customers - Revenue By Geographic Segment (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Mar. 31, 2025
Mar. 31, 2024
Segment Reporting Revenue Reconciling Item [Line Items]        
Total revenue $ 636,366 $ 603,072 $ 1,201,494 $ 1,153,286
Operating Segments        
Segment Reporting Revenue Reconciling Item [Line Items]        
Total revenue 636,366 603,072 1,201,494 1,153,286
Americas | Operating Segments        
Segment Reporting Revenue Reconciling Item [Line Items]        
Total revenue 292,823 260,622 570,792 527,889
Europe | Operating Segments        
Segment Reporting Revenue Reconciling Item [Line Items]        
Total revenue 251,148 257,309 447,172 454,262
Asia-Pacific | Operating Segments        
Segment Reporting Revenue Reconciling Item [Line Items]        
Total revenue $ 92,395 $ 85,141 $ 183,530 $ 171,135
v3.25.1
Stock-based Compensation - Additional Information (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Sep. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Liability classified awards related to stock-based compensation $ 20.5 $ 47.7
v3.25.1
Stock-based Compensation - Schedule of Classification of Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Mar. 31, 2025
Mar. 31, 2024
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Total stock-based compensation expense $ 51,512 $ 54,191 $ 107,363 $ 113,204
Sales and marketing        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Total stock-based compensation expense 13,545 14,729 31,613 30,856
Research and development        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Total stock-based compensation expense 14,391 13,936 30,546 28,174
General and administrative        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Total stock-based compensation expense 18,069 20,492 33,784 44,051
License | Cost of Sales        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Total stock-based compensation expense 72 29 106 67
Support and cloud services | Cost of Sales        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Total stock-based compensation expense 3,912 3,345 7,970 6,727
Professional services | Cost of Sales        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Total stock-based compensation expense $ 1,523 $ 1,660 $ 3,344 $ 3,329
v3.25.1
Earnings per Share (EPS) and Common Stock - Earnings Per Share Basic and Diluted (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Mar. 31, 2025
Mar. 31, 2024
Earnings Per Share And Common Stock [Abstract]        
Net Income (Loss) $ 162,644 $ 114,445 $ 244,876 $ 180,832
Weighted-average shares outstanding—Basic 120,177 119,587 120,210 119,354
Dilutive effect of restricted stock units 677 1,125 790 1,126
Weighted-average shares outstanding—Diluted 120,854 120,712 121,000 120,480
Earnings per share—Basic $ 1.35 $ 0.96 $ 2.04 $ 1.52
Earnings per share—Diluted $ 1.35 $ 0.95 $ 2.02 $ 1.5
v3.25.1
Earnings per Share (EPS) and Common Stock - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Mar. 31, 2025
Mar. 31, 2024
Oct. 01, 2024
Sep. 30, 2024
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]            
Anti-dilutive shares 300,000 100,000 200,000 100,000    
Common stock, shares authorized 500,000,000   500,000,000     500,000,000
Stock repurchased during period (in shares) 500,000 0 800,000 0    
Stock repurchased during period, value $ 75   $ 150      
Maximum [Member]            
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]            
Common stock, shares authorized 500,000,000   500,000,000      
Stock authorized to repurchase         $ 2,000  
v3.25.1
Acquisitions - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Oct. 04, 2023
Oct. 02, 2023
Jan. 03, 2023
Mar. 31, 2025
Mar. 31, 2024
Mar. 31, 2025
Mar. 31, 2024
Sep. 30, 2024
Business Acquisition [Line Items]                
Business combination, acquisition and transaction related costs       $ 600 $ 300 $ 800 $ 2,800  
Goodwill       $ 3,444,104   $ 3,444,104   $ 3,461,891
Servicemax acquisition                
Business Acquisition [Line Items]                
Preliminary purchase price     $ 828,200          
Payments to acquire business, net of cash     $ 1,448,200          
Deferred acquisition payments   $ 650,000            
Payments to acquire business   620,000            
Imputed interest payable   $ 30,000            
Pure System                
Business Acquisition [Line Items]                
Payments to acquire business, net of cash $ 93,500              
Goodwill 77,100              
Intangible assets 28,200              
Net tax liabilities 8,800              
Other net liabilities $ 3,000              
v3.25.1
Goodwill and Intangible Assets - Schedule of Goodwill and Acquired Intangible Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Sep. 30, 2024
Goodwill $ 3,444,104 $ 3,461,891
Intangible assets with finite lives, Gross Carrying Amount 1,832,101 1,840,304
Intangible assets with finite lives, Accumulated Amortization 976,307 942,828
Intangible assets with finite lives, Net Book Value 855,794 897,476
Intangible Assets, Net (Including Goodwill) 4,299,898 4,359,367
Purchased Software    
Intangible assets with finite lives, Gross Carrying Amount 631,889 634,439
Intangible assets with finite lives, Accumulated Amortization 451,196 436,471
Intangible assets with finite lives, Net Book Value 180,693 197,968
Capitalized Software    
Intangible assets with finite lives, Gross Carrying Amount 22,877 22,877
Intangible assets with finite lives, Accumulated Amortization 22,877 22,877
Intangible assets with finite lives, Net Book Value 0 0
Customer Lists and Relationships    
Intangible assets with finite lives, Gross Carrying Amount 1,135,655 1,141,086
Intangible assets with finite lives, Accumulated Amortization 475,455 457,718
Intangible assets with finite lives, Net Book Value 660,200 683,368
Trademarks and Trade Names    
Intangible assets with finite lives, Gross Carrying Amount 37,780 37,961
Intangible assets with finite lives, Accumulated Amortization 22,879 21,821
Intangible assets with finite lives, Net Book Value 14,901 16,140
Other    
Intangible assets with finite lives, Gross Carrying Amount 3,900 3,941
Intangible assets with finite lives, Accumulated Amortization 3,900 3,941
Intangible assets with finite lives, Net Book Value $ 0 $ 0
v3.25.1
Goodwill and Intangible Assets - Schedule of Changes in Goodwill by Reportable Segments (Details)
$ in Thousands
 6 Months Ended
Mar. 31, 2025
USD ($)
Goodwill [Line Items]  
Balance, October 1, 2024 $ 3,461,891
Foreign currency translation adjustment (17,787)
Balance, March 31, 2025 $ 3,444,104
v3.25.1
Goodwill and Intangible Assets - Schedule of Aggregate Amortization Expense for Intangible Assets with Finite Lives (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Mar. 31, 2025
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]        
Amortization of acquired intangible assets $ 11,380 $ 10,424 $ 22,820 $ 20,787
Cost of revenue 8,131 9,584 16,431 19,150
Total amortization expense $ 19,511 $ 20,008 $ 39,251 $ 39,937
v3.25.1
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Sep. 30, 2024
Financial assets:    
Cash equivalents [1] $ 73,936 $ 48,509
Derivative Asset Statement of Financial Position Extensible Enumeration Other assets Other assets
Financial assets, fair value $ 79,937 $ 49,711
Financial liabilities:    
Financial liabilities, fair value $ 4,286 $ 4,166
Derivative Liability Statement Of Financial Position Extensible Enumeration Other liabilities Other liabilities
Forward Contracts    
Financial assets:    
Foreign currency contract, asset $ 6,001 $ 1,202
Financial liabilities:    
Foreign currency contracts, liability 4,286 4,166
Level 1    
Financial assets:    
Cash equivalents [1] 73,936 48,509
Financial assets, fair value 73,936 48,509
Financial liabilities:    
Financial liabilities, fair value 0 0
Level 1 | Forward Contracts    
Financial assets:    
Foreign currency contract, asset 0 0
Financial liabilities:    
Foreign currency contracts, liability 0 0
Level 2    
Financial assets:    
Cash equivalents [1] 0 0
Financial assets, fair value 6,001 1,202
Financial liabilities:    
Financial liabilities, fair value 4,286 4,166
Level 2 | Forward Contracts    
Financial assets:    
Foreign currency contract, asset 6,001 1,202
Financial liabilities:    
Foreign currency contracts, liability 4,286 4,166
Level 3    
Financial assets:    
Cash equivalents [1] 0 0
Financial assets, fair value 0 0
Financial liabilities:    
Financial liabilities, fair value 0 0
Level 3 | Forward Contracts    
Financial assets:    
Foreign currency contract, asset 0 0
Financial liabilities:    
Foreign currency contracts, liability $ 0 $ 0
[1] Money market funds and time deposits.
v3.25.1
Fair Value Measurements - Additional Information (Details) - Level 3 - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2024
Sep. 30, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Amount invested in non-marketable convertible note   $ 2.0
Impairment loss related to investments $ 2.0  
v3.25.1
Derivative Financial Instruments - Schedule of Derivative Financial Instruments at Gross Fair Value (Details) - Forward contracts - USD ($)
$ in Thousands
Mar. 31, 2025
Sep. 30, 2024
Designated as Hedging Instrument    
Derivative [Line Items]    
Gross Amount of Recognized Assets [1] $ 3,170 $ 181
Gross Amount of Recognized Liabilities [2] 0 630
Not Designated as Hedging Instrument    
Derivative [Line Items]    
Fair Value of Derivatives Not Designated As Hedging Instruments [1] 2,831 1,021
Fair Value of Derivatives Not Designated As Hedging Instruments [2] $ 4,286 $ 3,536
[1] As of March 31, 2025 and September 30, 2024, current derivative assets are recorded in Other current assets in the Consolidated Balance Sheets.
[2] As of March 31, 2025 and September 30, 2024, current derivative liabilities are recorded in Accrued expenses and other current liabilities in the Consolidated Balance Sheets.
v3.25.1
Derivative Financial Instruments - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Mar. 31, 2025
Mar. 31, 2024
Derivative [Line Items]        
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, net $ 0.1 $ (1.1) $ (1.1) $ (0.1)
Maximum | Forward contracts | Not Designated as Hedging Instrument        
Derivative [Line Items]        
Derivative, remaining maturity 3 months   3 months  
Maximum | Forward contracts | Designated as Hedging Instrument | Net Investment Hedging        
Derivative [Line Items]        
Derivative, remaining maturity 3 months   3 months  
v3.25.1
Derivative Financial Instruments - Schedule of Notional Amounts of Outstanding Forward Contracts and Options (Details) - Not Designated as Hedging Instrument - Foreign Exchange Forward Contract and Options - USD ($)
$ in Thousands
Mar. 31, 2025
Sep. 30, 2024
Derivative [Line Items]    
Notional amount $ 873,034 $ 1,058,478
Euro / U.S. Dollar    
Derivative [Line Items]    
Notional amount 764,722 781,398
British Pound / U.S. Dollar    
Derivative [Line Items]    
Notional amount 16,391 24,810
Israeli Shekel / U.S. Dollar    
Derivative [Line Items]    
Notional amount 13,615 12,535
Japanese Yen / U.S. Dollar    
Derivative [Line Items]    
Notional amount 27,008 42,340
Swiss Franc / U.S. Dollar    
Derivative [Line Items]    
Notional amount 5,319 74,939
Swedish Krona / U.S. Dollar    
Derivative [Line Items]    
Notional amount 16,036 48,596
Chinese Renminbi / U.S. Dollar    
Derivative [Line Items]    
Notional amount 3,891 32,124
New Taiwan Dollar / U.S. Dollar    
Derivative [Line Items]    
Notional amount 6,501 16,368
All other    
Derivative [Line Items]    
Notional amount $ 19,551 $ 25,368
v3.25.1
Derivative Financial Instruments - Schedule of Derivative Instruments and Hedging Activities Disclosures (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Mar. 31, 2025
Mar. 31, 2024
Derivative Instruments Gain Loss [Line Items]        
Gain (loss) recognized in Other comprehensive income (loss) ("OCI") $ (15,014) $ 6,432 $ 10,226 $ (5,079)
Derivative, Excluded Component, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Nonoperating Income (Expense) Nonoperating Income (Expense) Nonoperating Income (Expense) Nonoperating Income (Expense)
Foreign Exchange Forward Contract and Options | Not Designated as Hedging Instrument        
Derivative Instruments Gain Loss [Line Items]        
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Nonoperating Income (Expense) Nonoperating Income (Expense) Nonoperating Income (Expense) Nonoperating Income (Expense)
Foreign Exchange Forward Contract and Options | Not Designated as Hedging Instrument | Other income (expense), net        
Derivative Instruments Gain Loss [Line Items]        
Net realized and unrealized gain (loss), excluding the underlying foreign currency exposure being hedged $ (917) $ (1,286) $ (360) $ (5,022)
Forward Contracts | Designated as Hedging Instrument | Net Investment Hedging        
Derivative Instruments Gain Loss [Line Items]        
Gain (loss) recognized in Other comprehensive income (loss) ("OCI") (19,898) 8,552 13,550 (6,752)
Gain (loss) reclassified from OCI to earnings 0 0 0 0
Gain recognized, excluded portion $ 1,254 $ 1,079 $ 2,329 $ 2,215
v3.25.1
Derivative Financial Instruments - Schedule of Notional Amounts of Outstanding Forward Contracts (Details) - Forward Contracts - Designated as Hedging Instrument - Net Investment Hedging - USD ($)
$ in Thousands
Mar. 31, 2025
Sep. 30, 2024
Derivative [Line Items]    
Notional amount $ 453,500 $ 473,633
Euro / U.S. Dollar    
Derivative [Line Items]    
Notional amount 443,398 462,894
Japanese Yen / U.S. Dollar    
Derivative [Line Items]    
Notional amount $ 10,102 $ 10,739
v3.25.1
Derivative Financial Instruments - Schedule of Offsetting Assets (Details) - Foreign Currency Forwards
$ in Thousands
Mar. 31, 2025
USD ($)
Derivative [Line Items]  
Gross Amount of Recognized Assets $ 6,001
Gross Amounts Offset in the Consolidated Balance Sheets 0
Net Amounts of Assets Presented in the Consolidated Balance Sheets 6,001
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments (4,286)
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Received 0
Net Amount $ 1,715
v3.25.1
Derivative Financial Instruments - Schedule of Offsetting Liabilities (Details) - Foreign Currency Forwards
$ in Thousands
Mar. 31, 2025
USD ($)
Derivative [Line Items]  
Gross Amount of Recognized Liabilities $ 4,286
Gross Amounts Offset in the Consolidated Balance Sheets 0
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets 4,286
Gross Amounts Not Offset in the Consolidated Balance Sheets, Financial Instruments (4,286)
Gross Amounts Not Offset in the Consolidated Balance Sheets, Cash Collateral Pledged 0
Net Amount $ 0
v3.25.1
Income Taxes - Summary of Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Mar. 31, 2025
Mar. 31, 2024
Income Tax Disclosure [Abstract]        
Income before income taxes $ 205,249 $ 145,745 $ 298,403 $ 231,344
Provision for income taxes $ 42,605 $ 31,300 $ 53,527 $ 50,512
Effective income tax rate 21.00% 21.00% 18.00% 22.00%
v3.25.1
Income Taxes - Additional Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Mar. 31, 2025
Mar. 31, 2024
Sep. 30, 2024
Income Tax Disclosure [Line Items]          
Provision (benefit) for income taxes $ 42,605 $ 31,300 $ 53,527 $ 50,512  
Unrecognized tax benefits 42,500   42,500   $ 65,000
Income tax provision upon recognition of unrecognized tax benefit 42,500   42,500    
Unrecognized tax benefits, increase in valuation allowance upon recognition 6,500   6,500    
Potential decrease in unrecognized tax benefits $ 1,000   1,000    
Foreign Tax Jurisdiction [Member]          
Income Tax Disclosure [Line Items]          
Provision (benefit) for income taxes     $ (10,400) $ 3,600  
v3.25.1
Debt - Schedule of Long-term Debt Obligations (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Sep. 30, 2024
Feb. 13, 2020
Debt Instrument [Line Items]      
Total debt $ 1,392,500 $ 1,752,625  
Unamortized debt issuance costs for the senior notes [1] (3,107) (4,053)  
Total debt, net of issuance costs [2] 1,389,393 1,748,572  
4.000% Senior Notes Due 2028      
Debt Instrument [Line Items]      
Senior Notes     $ 500,000
3.625% Senior Notes Due 2025      
Debt Instrument [Line Items]      
Senior Notes     $ 500,000
Long-term Debt | Revolver Credit Facility      
Debt Instrument [Line Items]      
Payment to credit facility revolver [3],[4] 411,250 262,000  
Long-term Debt | Secured Debt      
Debt Instrument [Line Items]      
Payment to credit facility revolver [3],[4] 481,250 490,625  
Long-term Debt | 4.000% Senior Notes Due 2028      
Debt Instrument [Line Items]      
Senior Notes 500,000 500,000  
Long-term Debt | 3.625% Senior Notes Due 2025      
Debt Instrument [Line Items]      
Senior Notes $ 0 $ 500,000  
[1] unamortized debt issuance costs for the senior notes were included in Long-term debt on the Consolidated Balance Sheet. As of September 30, 2024, $0.4 million of unamortized debt issuance costs for the senior notes was included in Current portion of long-term debt and $3.6 million was included in Long-term debt on the Consolidated Balance Sheet.
[2] As of March 31, 2025, $25.0 million of debt associated with the credit facility term loan was classified as short term. As of September 30, 2024, $521.5 million of debt was classified as short term, including $499.6 million associated with the 2025 senior notes and related debt issuance costs and $21.9 million associated with the credit facility term loan.
[3] The stated maturity date under the credit facility on which both the revolver line and the term loan will mature and all amounts then outstanding will become due and payable is January 3, 2028. The term loan began amortizing in March 2024, with payments of $12.5 million remaining in 2025, $25.0 million in 2026 and 2027, and $418.7 million in 2028.
[4] Unamortized debt issuance costs related to the credit facility were $2.7 million included in Other current assets and $4.7 million included in Other assets on the Consolidated Balance Sheet as of March 31, 2025 and $2.3 million included in Other current assets and $5.2 million included in Other assets on the Consolidated Balance Sheet as of September 30, 2024.
v3.25.1
Debt - Schedule of Long-term Debt Obligations (Parenthetical) (Details) - USD ($)
$ in Thousands
 6 Months Ended
Mar. 31, 2025
Sep. 30, 2024
Debt Instrument [Line Items]    
Unamortized Debt Issuance Expense [1] $ 3,107 $ 4,053
Long term debt $ 25,000 521,467
Line of Credit    
Debt Instrument [Line Items]    
Credit facility maturity date Jan. 03, 2028  
Secured Debt    
Debt Instrument [Line Items]    
Long term debt maturity repayments year one $ 12,500  
Long term debt maturity repayments year two 25,000  
Long term debt maturity repayments year three 25,000  
Long term debt maturity repayments year four 418,700  
Long term debt   21,900
Senior Notes    
Debt Instrument [Line Items]    
Long term debt   499,600
Other Current Assets | Line of Credit    
Debt Instrument [Line Items]    
Unamortized Debt Issuance Expense 2,700 2,300
Other Noncurrent Assets | Line of Credit    
Debt Instrument [Line Items]    
Unamortized Debt Issuance Expense $ 4,700 5,200
Current portion of long-term debt | Senior Notes    
Debt Instrument [Line Items]    
Unamortized Debt Issuance Expense   400
Long-term Debt    
Debt Instrument [Line Items]    
Unamortized Debt Issuance Expense   $ 3,600
[1] unamortized debt issuance costs for the senior notes were included in Long-term debt on the Consolidated Balance Sheet. As of September 30, 2024, $0.4 million of unamortized debt issuance costs for the senior notes was included in Current portion of long-term debt and $3.6 million was included in Long-term debt on the Consolidated Balance Sheet.
v3.25.1
Debt - Senior Notes - Additional Information (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Feb. 13, 2020
4.000% Senior Notes Due 2028    
Debt Instrument [Line Items]    
Senior Notes   $ 500.0
Interest rate   4.00%
4.000% Senior Notes Due 2028 | Senior Notes    
Debt Instrument [Line Items]    
Fair value amount $ 481.3  
3.625% Senior Notes Due 2025    
Debt Instrument [Line Items]    
Senior Notes   $ 500.0
Interest rate   3.625%
v3.25.1
Debt - Credit Agreement - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Mar. 31, 2025
Mar. 31, 2024
Jan. 31, 2023
Debt Instrument [Line Items]          
Amount borrowed from credit facility foreign subsidiary $ 241.3   $ 241.3    
Interest expense $ 19.6 $ 31.6 $ 41.7 $ 66.9  
Interest rate during period 4.90% 5.50% 4.80% 5.60%  
Line of Credit          
Debt Instrument [Line Items]          
Unused commitments under credit facility $ 838.8   $ 838.8    
Amounts available for borrowing $ 823.3   $ 823.3    
Line of Credit | Minimum          
Debt Instrument [Line Items]          
Credit facility commitment fees percentage     0.175%    
Line of Credit | Maximum          
Debt Instrument [Line Items]          
Credit facility commitment fees percentage     0.325%    
Secured Debt          
Debt Instrument [Line Items]          
Credit facility amount         $ 500.0
Annual rate for borrowings outstanding 5.90%   5.90%    
Revolving Credit Facility          
Debt Instrument [Line Items]          
Credit facility amount         $ 1,250.0