Robotics continues to capture investors’ attention, especially as artificial intelligence ushers in a new era of automation. From manufacturing and logistics to healthcare and everyday tasks, robotics is revolutionizing industries by enhancing efficiency, precision, and scalability.
Given the industry’s strong growth potential, investors could consider solid robotics stocks PTC Inc. , UiPath Inc. , and FARO Technologies, Inc. , which are at the forefront of automating industries.
The demand for robotics technology is surging across various sectors, from industrial automation and supply chain management to sales and healthcare. As AI and machine learning refine robotic capabilities, these intelligent systems learn to adapt, improving their decision-making and tackling increasingly complex tasks with remarkable precision.
Industrial robots, which handle tasks like assembly, material management, and production optimization, are expected to surge from $21.94 billion in 2025 to $55.55 billion by 2032, exhibiting a CAGR of 14.2%. Meanwhile, robotic-assisted surgical systems are transforming healthcare by reducing surgery times and accelerating patient recovery.
Overall, the global robotics market is projected to hit $178.63 billion by 2030, growing at a CAGR of 12.2%. AI-powered advancements further enhance robotics, enabling greater precision and adaptability in industries such as autonomous vehicles, precision agriculture, and personalized healthcare. As these technologies continue to evolve, robotics remains a promising sector for long-term investors.
Considering these conducive trends, let’s examine the fundamental aspects of the featured stocks in detail:
PTC Inc. (PTC)
PTC is a global software company that enables industrial and manufacturing companies to digitally transform how they engineer, manufacture, and service physical products. Its suite of PLM solutions includes Windchill, ThingWorx, ServiceMax, Arena, Codebeamer, Servigistics, FlexPLM, and Kepware, while its CAD offerings include Creo 3D, Onshape, Vuforia, and Arbortext.
On December 3, 2024, PTC announced a partnership with Microsoft Corporation and Volkswagen AG to develop a GenAI copilot based on the PTC Codebeamer® application lifecycle management (ALM) solution. The new Codebeamer Copilot aims to streamline software development for physical products, making creating and managing product requirements more efficient.
This collaboration is designed to enhance the value of Codebeamer by integrating Microsoft Azure’s GenAI capabilities, positioning PTC to capitalize on the rapidly growing AI market.
For the fiscal 2024 fourth quarter that ended September 30, PTC’s total revenue increased 14.6% year-over-year to $626.55 million. Its non-GAAP gross margin rose 18.6% from the year-ago value to $528.84 million, while its non-GAAP operating income grew 37.8% from the prior year’s quarter to $276.56 million. Additionally, non-GAAP net income and EPS increased 29.1% and 28.3% year-over-year to $186.06 million and $1.54, respectively.
The consensus revenue estimate of $650.11 million for the fiscal second quarter (ending March 2025) represents a 7.8% increase year-over-year. The consensus EPS estimate of $1.63 for the same quarter indicates an 11.6% improvement year-over-year. The company has an excellent earnings surprise history; it surpassed the consensus EPS estimates in each of the trailing four quarters.
Over the past six months, the stock has surged 8.7%, closing the last trading session at $189.08.
PTC’s stance is apparent in its POWR Ratings. The stock has a B grade for Growth and Quality. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
Among the 127 stocks in the Software - Application industry, it is ranked #50. Click here to see the additional PTC ratings (Value, Momentum, Stability, and Sentiment).
UiPath Inc. (PATH)
PATH is an enterprise automation and artificial intelligence (AI) software company that provides an end-to-end automation platform that offers a variety of international robotic process automation (RPA) solutions.
On October 22, 2024, PATH announced a strategic partnership with Inflection AI to integrate the UiPath Platform™ with the new Inflection for Enterprise solution, allowing enterprises to achieve greater levels of operational efficiency and effectiveness without compromising trust and AI security options. This partnership strengthens PATH’s position in enterprise automation, expanding its reach and potential adoption among major corporations.
PATH’s revenues for the third quarter (ended October 31, 2024) increased 8.8% year-over-year to $354.65 million. It reported a non-GAAP gross profit of $300.36 million, indicating a 5.7% growth from the prior-year quarter.
The company’s non-GAAP operating income came in at $49.72 million, up 13.8% year-over-year, while its non-GAAP net income for the quarter amounted to $59.81 million or $0.11 per share. Also, its non-GAAP adjusted free cash flow increased 12.2% year-over-year, amounting to $182.87 million.
Analysts expect PATH’s revenue for the fourth quarter (ending January 2025) to increase 4.9% year-over-year to $425.45 million. The company’s revenue for the fiscal year 2026 is expected to grow 10.7% year-over-year to $1.58 billion. Moreover, the company topped the consensus revenue estimates in each of the trailing four quarters.
The stock has gained 16.9% over the past six months to close the last trading session at $14.40.
PATH’s POWR Ratings reflect its promising outlook. The stock has an overall rating of B, which equates to Buy in our proprietary rating system.
PATH has a B grade for Growth, Momentum, and Quality. It is ranked #9 out of 18 stocks in the A-rated Software - SAAS industry. Click here to access the other ratings of PATH for Value, Stability and Sentiment.
FARO Technologies, Inc. (FARO)
FARO designs, develops, manufactures, markets, and supports software-driven three-dimensional measurement, imaging, and realization solutions for the manufacturing, architecture, engineering, and construction (AEC), operations and maintenance (O&M), and public safety analytics markets.
On January 23, 2025, FARO expanded into the handheld scanning market with the launch of FARO Leap ST®. This new addition enhances the company’s product lineup, positioning FARO among the select few offering a full suite of portable 3D metrology devices.
The launch bolsters FARO’s footprint in the manufacturing sector, where precision, efficiency, and speed are crucial. Alongside this, FARO also introduced an update to its FARO CAM2® Software, streamlining the process of scanning parts for greater ease and effectiveness.
In October last year, the company launched the Focus Premium Max 3D Laser Scanner, which extends the scanning range to 400 meters and reduces scanning time by up to 50% with Hybrid Reality Capture. The enhanced Focus portfolio simplifies workflows for construction, geospatial, and public safety applications.
FARO’s net sales for the fiscal third quarter that ended September 30, 2024, amounted to $82.56 million. The company’s non-GAAP gross profit grew 9.3% year-over-year to $46.36 million. Its income from operations came in at $2.16 million compared to a loss of $6.93 million last year.
Moreover, its non-GAAP net income amounted to $3.99 million, or $0.21 per share, indicating considerable improvement from the year-ago values of $457 thousand or $0.03 per share, respectively. Also, its adjusted EBITDA stood at $8.85 million, up 151.5% year-over-year.
Street expects FARO’s EPS for the quarter ended December 31, 2024, to increase 11.1% year-over-year to 0.40. Its revenue for the same period is estimated to come in at $91.40 million. It surpassed the consensus EPS estimates in each of the trailing four quarters, which is impressive.
Shares of FARO have surged 78.9% over the past six months and 20.5% year-to-date to close the last trading session at $30.55.
It’s no surprise that FARO has an overall rating of A, equating to a Strong Buy in our POWR Ratings system. It also has an A grade for Growth and a B for Value, Sentiment, and Quality. It is ranked #4 out of 42 stocks in the B-rated Software – Business industry.
Beyond what is stated above, we’ve also rated FARO for Momentum and Stability. Get all FARO ratings here.
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PTC shares were trading at $192.38 per share on Thursday afternoon, up $3.30 (+1.75%). Year-to-date, PTC has gained 4.63%, versus a 3.12% rise in the benchmark S&P 500 index during the same period.
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