Dassault Systèmes (-18.27% at 18.34 euros) is at the bottom of the CAC 40 index. Already under pressure due to concerns over the impact of the AI revolution on software publishers, the group plunged further following the release of its earnings and outlook.
Dassault Systèmes this morning reported a non-IFRS EPS of 0.40 euro for its fourth quarter of 2025, up 9% at constant currency (CC), but 6% below consensus estimates. Similarly, its non-IFRS operating margin improved by 90 basis points to 37%, yet still missed the 38.2% average expected by analysts, according to Jefferies.
Also at CC, the enterprise software publisher's total revenue rose by 1% to 1.68 billion euros, "against a high comparison base, at the lower end of its guidance range," and 3% below the market's average forecast.
"Moreover, the revenue growth guidance for fiscal 2026 of 3 to 5% (at CC) is below expectations and reflects a company facing economic model challenges," Jefferies also highlighted.
The broker also estimates that the target of a 20 to 60 basis point operating margin gain for 2026 implies only about 3% growth in operating expenses. "In this period of accelerated change, it is difficult to see how this level of opex growth can drive significant changes," it warns, while maintaining its "underperform" rating on the stock.
Dassault Systèmes SE is the world leader in developing and marketing product life cycle management software. Net sales break down by family of products and services as follows:
- software (90.3%): product process optimization software and 3D design software for the following markets: general mechanical, automotive, aeronautics, consumer goods, electricity, and electronics, and factory design and naval construction. In addition, the group offers update and technical support services;
- services (9.7%): technological consulting and training services.
Net sales are distributed geographically as follows: France (15.9%), Germany (4.9%), Europe (10.8%), the United States (48.9%), Americas (1.2%), Japan (6.4%) and Asia (11.9%).
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.