Creo 12 enhances design and collaboration for manufacturers

BOSTON - PTC (NASDAQ: PTC), a $20.2 billion market cap software company with impressive gross profit margins of 81%, has unveiled the latest iteration of its Creo computer-aided design (CAD) software, Creo 12, aimed at bolstering productivity and fostering better collaboration in manufacturing design processes. According to InvestingPro analysis, PTC appears slightly undervalued based on its Fair Value estimates. The update introduces a suite of enhancements, including user-driven features, advanced composites design, and AI-powered generative design capabilities. This innovation comes as PTC maintains strong financial performance, with annual revenue of $2.35 billion and robust returns on invested capital.

Creo 12’s improvements in usability and productivity feature user-requested additions such as feature presets and multi-body part-driven assemblies. These enhancements, alongside updates to sheet metal design and advanced surfacing modules, are designed to streamline workflows and allow design teams to accomplish more in less time.

The software’s advanced composites design and manufacturing tools have been upgraded to quicken the development of composite structures without sacrificing quality. This aligns with industry demands for high precision and performance in composite production.

Incorporating thermal physics, the new AI-driven generative design functions in Creo 12 enable faster iteration and optimization of products. The integration with Ansys real-time simulation for automatic contact creation further accelerates the design process.

Addressing the growing trend of electrification, Creo 12 enhances cable harness design capabilities, simplifying the complexity of harness assemblies and improving collaboration. This update is particularly relevant for companies engaged in electrification initiatives.

Another significant addition is the connection between Creo models and engineering material data within PTC’s Windchill product lifecycle management (PLM) solution. This feature supports sustainability efforts by providing better visibility into material choices and their environmental impacts, including carbon footprints.

PTC also announced the availability of Creo+, a cloud-enabled SaaS version of Creo, which offers cloud-based collaboration and entitlement tools.

Creo 12 will be showcased at the International Paris Air Show from June 16 to 22, 2025, where PTC will demonstrate its application in the design and simulation processes of Hill Helicopters.

The announcement is based on a press release statement from PTC, a global software company headquartered in Boston, Massachusetts, that supports over 30,000 customers worldwide. With a "GOOD" overall financial health score from InvestingPro, which offers 12 additional exclusive insights about PTC’s performance and valuation, the company continues to demonstrate solid operational execution. For deeper analysis, investors can access PTC’s comprehensive Pro Research Report, part of InvestingPro’s coverage of over 1,400 US equities.

In other recent news, PTC Inc. reported strong financial results for the second quarter of 2025, with earnings per share (EPS) and revenue both surpassing analyst expectations. The company posted an EPS of $1.79, exceeding the forecasted $1.40, and reported revenue of $636 million, which was higher than the anticipated $608.77 million. PTC’s Annual Recurring Revenue (ARR) grew by 10% year-over-year, supported by strong performances in CAD and Product Lifecycle Management (PLM). Additionally, the company saw a 13% increase in free cash flow, reaching $279 million.

BMO Capital Markets responded to these results by raising PTC’s stock price target to $187 from $183 and maintained an Outperform rating, citing the company’s strong financial health and effective cash collection processes. On the other hand, Berenberg reduced PTC’s stock price target to $190 from $196 while maintaining a Hold rating, noting the company’s successful go-to-market realignment initiative.

PTC’s strategic moves included securing cross-sell deals in the automotive and industrial sectors, indicating a positive impact from its realignment efforts. The company also launched several Artificial Intelligence (AI) products and completed strategic acquisitions, which are expected to support long-term growth. Despite macroeconomic uncertainties, PTC remains focused on digital transformation opportunities, with analysts noting its strong market positioning.

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