Dassault Systèmes Overview
Dassault Systèmes is one of the world's two largest industrial software houses. It is the main independent alternative to Siemens' Digital Industries Software, and it has more than 390,000 customers in over 155 countries. Its business is the "virtual twin": a model of a product, a production system or a biological process, built on physics and science, that customers design, simulate, manufacture and manage on the 3DEXPERIENCE platform. Its brands include CATIA, SOLIDWORKS, ENOVIA, SIMULIA, DELMIA, BIOVIA, MEDIDATA and CENTRIC PLM. FY2025 revenue was €6.24bn, of which 82% of software revenue was recurring. The non-IFRS operating margin was 32.0%, and the balance sheet held net cash. Growth has slowed from about 9% in 2022 to 4% in 2025, mainly because the Medidata clinical-trials franchise has been weak and European automotive demand soft. Management's response is "3D UNIV+RSES": generative and agentic industrial AI built on science-validated "Industry World Models", backed by a strategic partnership with NVIDIA announced in February 2026. Life sciences was deepened further by the $1.8bn ArisGlobal acquisition, which closed in September 2026. In semiconductors, the company is building multi-scale twins that run from materials and plasma-process physics to wafer, equipment and cleanroom models.
What the company does. Dassault Systèmes develops and sells software, plus related cloud and services, that lets companies represent products, processes and living systems virtually across their whole lifecycle. That lifecycle runs from concept and 3D design through simulation, systems engineering, manufacturing planning and execution, product data management, collaboration and commercial experience. In life sciences, it also covers molecular discovery, clinical trials, regulatory submission and pharmacovigilance. The company describes itself as a "catalyst for human progress" that has created virtual worlds since 1981 to improve real life for consumers, patients and citizens (FY2025 Universal Registration Document, filed Mar 31, 2026).
Business model. Revenue comes overwhelmingly from software. In FY2025, software revenue was €5.64bn out of €6.24bn total, or about 90%, and services were €0.59bn, or about 10% (FY2025 earnings release, Feb 11, 2026). Software revenue has two streams:
Licences and other software: perpetual licences recognised up front. These were €1,020.7m in FY2025, down 6% in constant currency, as customers move to subscription.
Subscription and support: term subscriptions, cloud/SaaS and maintenance on the perpetual installed base. These were €4,624.1m in FY2025, up 6% in constant currency.
Recurring revenue was 82% of software revenue in FY2025, up from 80% in FY2024, and reached 83–85% in 2026 quarters. From 2026 the company reports Annual Run Rate (ARR), which was €4.50bn at Sep 30, 2026, up 6% in constant currency. Management expects subscription revenue to overtake maintenance revenue during 2026. Cloud software was 25% of software revenue in FY2025 and 28% in Q3 2026. 3DEXPERIENCE-based software was 41% of "3DEXPERIENCE-eligible" software revenue in FY2025 and 46% in Q3 2026.
Value-chain position. Dassault Systèmes sits at the top of the industrial value chain, in the intellectual-property creation layer that defines what gets built and how. Its software holds product definitions, bills of materials, simulation models, manufacturing process plans and, in life sciences, clinical and safety data. Switching costs are therefore very high. It sells directly to large enterprises through its Business Transformation and industry sales channels. It reaches small and mid-sized companies through a global value-added reseller network, used especially for SOLIDWORKS and 3DEXPERIENCE Works. Life Sciences sells directly to pharmaceutical companies, biotech firms and contract research organisations (CROs). The company also runs its own sovereign cloud infrastructure brand, OUTSCALE.
Customer types and end markets. The company groups its markets into three sectors. Shares of FY2025 non-IFRS software revenue are from the FY2025 URD:
Manufacturing Industries: Share of FY2025 software revenue (%): 71; Main industries: Transportation & Mobility (23% of software revenue), Industrial Equipment (17%), Aerospace & Defense (14%), High-Tech (including semiconductors and electronics), Home & Lifestyle, Consumer Packaged Goods & Retail, Business Services
Life Sciences & Healthcare: Share of FY2025 software revenue (%): 21; Main industries: Pharma, biotech, CROs, medical devices, hospitals and research institutions
Infrastructure & Cities: Share of FY2025 software revenue (%): 8; Main industries: Construction, cities & public services, energy & materials, marine & offshore, natural resources and mining
Independent characterisation. Dassault Systèmes is a high-margin, cash-generative vendor of mission-critical engineering software with two distinct engines:
-
A mature, defensible core in aerospace, automotive and industrial equipment. CATIA, ENOVIA, DELMIA and SIMULIA are de facto standards there, especially in Europe and among Airbus- and Boeing-linked supply chains. This core grows in the mid-single digits.
-
Adjacent diversification bets: life sciences (Medidata, BIOVIA, now ArisGlobal), consumer and fashion (Centric Software) and the mainstream SMB market (SOLIDWORKS). These have performed unevenly.
The investment debate centres on two questions. First, can the industrial-AI and virtual-twin agenda raise growth back toward high single digits? Second, has Life Sciences, now about 19–21% of software revenue, stabilised? In semiconductors, the company is a secondary but growing supplier. It offers 3DEXPERIENCE for semiconductor programme and IP management, SIMULIA electromagnetic and plasma simulation for equipment makers, DELMIA manufacturing operations software for fabs, and full fab virtual twins for yield, maintenance training and facility operations.
Strategy
Stated strategy. The company aims to lead the "Industrial AI" transformation through 3D UNIV+RSES. The idea is that virtual twins, enhanced by AI and grounded in science, become essential competitive assets in Manufacturing Industries, Life Sciences & Healthcare, and Infrastructure & Cities. Recurring themes in the FY2025 URD and 2026 releases are:
-
science-based Industry World Models;
-
the "generative economy";
-
sovereign cloud;
-
the shift from engineering tools to an "agentic platform" with skilled Virtual Companions;
-
the company as the "trusted global IP generation and management company".
For 2025–2026, management prioritises disciplined execution and aligning resources with strategic priorities. Medidata is expected to stabilise in 2026, with growth initiatives in 2027.
Strategic initiatives of the last 24 months
3D UNIV+RSES launch: Date: Feb 2025; Description: AI-era strategy combining multiple virtual twins with generative and agentic AI
Three AI-native solution categories: Date: 2025; Description: Virtual Companions, Generative Experiences and Virtual Twins as a Service, launched within a year
Contentserv acquisition: Date: Feb 2025; Description: Extends CENTRIC PLM into product-experience management
Medidata business transformation: Date: 2025; Description: New leadership and investment; expanded Sanofi partnership (Oct 2025)
CENTRIC PLM SaaS transition: Date: 2025; Description: Move to cloud delivery; short-term revenue drag in 2025
NVIDIA strategic partnership: Date: Feb 3, 2026; Description: Shared industrial-AI architecture: Industry World Models, OUTSCALE AI factories, BIOVIA with BioNeMo, DELMIA with Omniverse, SIMULIA with CUDA-X; NVIDIA adopts Dassault Systèmes MBSE for AI-factory design
ARR reporting: Date: 2026; Description: New recurring-revenue disclosure, with ARR guidance to follow in 2027
Semiconductor Virtual Twin Innovation Lab: Date: Jan 2026; Description: Purdue/Birck lab spanning materials-to-cleanroom twins and workforce training
Capital structure: Date: Jun 2026; Description: €1bn 2031 bond; revolving credit facility extended to 2031 with a €500m accordion option
ArisGlobal acquisition: Date: Jul–Sep 2026; Description: Creates a unified life-sciences intelligence platform linking molecule, patient and real-world outcomes
Medidata Plus: Date: 2026; Description: New Medidata offering launched in Q3 2026
PariSanté Campus partnership: Date: 2026; Description: Sovereign European healthcare ecosystem
Vertiv collaboration: Date: 2026; Description: Virtual-twin design of AI factories and data centres
SBTi-validated net-zero target: Date: 2026; Description: New science-based net-zero commitment
Organisational alignment: Date: Feb 2026; Description: Organisation realigned around strategic priorities and execution; no headcount-reduction target disclosed
Guidance and medium-term targets. The 2018–2023 plan, which doubled non-IFRS EPS to €1.20, was achieved. The current published financial guidance is for FY2026, non-IFRS, as raised on Oct 28, 2026:
Total revenue: Q4 2026: €1.782–1.842bn; FY2026: €6.399–6.459bn
Revenue growth ex-FX: Q4 2026: +5% to +8% (about 2 points from ArisGlobal); FY2026: +4% to +5%
Software revenue growth ex-FX: Q4 2026: +5% to +8%; FY2026: +4% to +5%
Services growth ex-FX: Q4 2026: +8% to +14%; FY2026: +6% to +8%
Operating margin: Q4 2026: 37.2–37.8%; FY2026: 32.5–32.7%
Diluted EPS: Q4 2026: €0.42–0.43; FY2026: €1.35–1.36 (+6% to +7% ex-FX)
FX assumptions: Q4 2026: $1.14 and ¥170 per euro; FY2026: $1.16 and ¥180.5 per euro
Initial FY2026 guidance in February 2026 was 3–5% growth, a 32.2–32.6% margin and EPS of €1.30–1.34. New medium-term targets are expected at the Capital Markets Day on Nov 17, 2026.
Products & Services
Platform layer
Industrial Innovation brands
Life Sciences brands
Mainstream Innovation brands
Services. Consulting, deployment, platform migration (including V5 to 3DEXPERIENCE), training and "Value Engagement" services. These generated €594.7m in FY2025. Services are guided to grow 6–8% in constant currency in FY2026, including the ArisGlobal contribution.
Pricing. Dassault Systèmes does not publish list prices for enterprise offerings. Pricing is per role, per user and per term for subscriptions, consumption-based for some cloud and simulation workloads, and per study or activity for parts of Medidata.
Product Portfolio
| Offering | Description and capabilities | Target customer | Introduced / latest | Pricing model |
|---|---|---|---|---|
3DEXPERIENCE platform | Single data model and collaboration backbone that unifies modelling, simulation, information intelligence and collaboration apps, available on-premises or in the cloud. Now marketed as an "agentic platform". | Enterprises and SMBs in all 12 industries | Launched 2012; ongoing releases | Subscription (named and role-based users), with perpetual licences for some on-premises roles |
3D UNIV+RSES | AI-era strategy and offering that combines multiple virtual twins with generative AI. It comprises Virtual Companions (skilled AI agents), Generative Experiences and Virtual Twins as a Service. | All customers | Unveiled Feb 2025; three AI-native solution categories launched within a year | Subscription; monetisation model to be detailed |
Industry World Models (with NVIDIA) | Science-validated AI models for biology, materials, engineering and manufacturing. Use NVIDIA Nemotron open models, BioNeMo, Omniverse and CUDA-X libraries. | Enterprises, research | Feb 3, 2026 | — |
OUTSCALE | Sovereign cloud infrastructure (IaaS/PaaS) that hosts 3DEXPERIENCE and customer workloads. Deploying "AI factories" with NVIDIA infrastructure on three continents. | Regulated industries, governments, European enterprises | Majority stake acquired 2017; became a brand in 2022 | Consumption and subscription |
“—” = not publicly disclosed.
| Brand | Description and capabilities | Target customer | Notes |
|---|---|---|---|
CATIA | Flagship 3D design, surface modelling, model-based systems engineering (MBSE, including No Magic/Cameo), electrical and cyber-systems design. | Aerospace & defence, automotive, industrial equipment OEMs and suppliers | Launched 1981. CATIA V5 (1998) is still widely used; 3DEXPERIENCE CATIA is current. NVIDIA will adopt Dassault Systèmes' MBSE approach for AI-factory design, starting with the Rubin platform. |
ENOVIA | PLM, product data and configuration management, programme and IP lifecycle management, and requirements and compliance. | Large enterprises, including semiconductor companies for IP and design-data management | Launched in the late 1990s; strengthened by MatrixOne (2006) |
SIMULIA | Multiphysics simulation: structural (Abaqus), fluids (PowerFLOW, from Exa, and XFlow), electromagnetics (CST Studio Suite, including 3D EM layout simulation and plasma/particle-in-cell modelling used for semiconductor dry-etch equipment), multibody (SIMPACK) and embedded systems (Argosim). | Engineering and R&D teams; semiconductor equipment vendors | Brand formed 2005. Will use NVIDIA CUDA-X and AI-physics libraries. |
DELMIA | Digital manufacturing and operations: process planning, robotics, factory simulation, manufacturing execution and operations management (Apriso), planning and optimisation (Quintiq), and ERP for SMB manufacturers (IQMS / DELMIAworks). | Manufacturers, including semiconductor fabs and gigafactories | Brand formed 2000. Will integrate NVIDIA Omniverse physical-AI libraries for autonomous, software-defined production. |
GEOVIA | Geological modelling, mine planning and natural-resources operations (Gemcom). | Mining and natural resources | Acquired 2012 |
NETVIBES | Data intelligence, semantic search and AI analytics (Exalead, Proxem). | Enterprises | Grew strongly in 2024 |
3DEXCITE | High-end 3D visualisation, marketing content and configurators. | Marketing and sales teams at OEMs | 2010s |
Semiconductor virtual-twin solutions | Multi-scale, multiphysics twins covering materials, plasma reactors, die, wafer, package, equipment and cleanroom, combined with immersive training and AI-guided experimentation. | Foundries, IDMs, equipment makers, universities | Purdue/Lam Research MOU (May 2024); Semiconductor Virtual Twin Innovation Lab at Purdue's Birck Nanotechnology Center (MOU of Jan 20, 2026) |
| Brand | Description and capabilities | Target customer | Notes |
|---|---|---|---|
MEDIDATA | Cloud platform for clinical trials: electronic data capture (Rave), patient experiences (eCOA, eConsent, decentralised trials), study experiences, data and AI, synthetic control arms, real-world data. "Medidata Plus" launched in 2026. | Pharma, biotech, CROs, medical-device makers | Acquired Oct 2019 for $5.8bn EV. Its customers include 18 of the top 25 pharma companies and 9 of the top 10 CROs (at acquisition). Expanded partnership with Sanofi in Oct 2025. |
BIOVIA | Scientific informatics, electronic lab notebooks, molecular and materials modelling. Combined with NVIDIA BioNeMo for molecule and materials discovery. | Pharma R&D, chemicals, materials, semiconductor materials | Accrelys acquired 2014 |
ArisGlobal (LifeSphere / NavaX) | AI-native SaaS for pharmacovigilance and drug safety, regulatory affairs, quality, medical affairs and real-world evidence. Processes more than 12 million patient safety reports a year. | Pharma, biotech, CROs | Completed Sep 2026. About 1,300 employees; about $175m expected 2026 revenue. |
Virtual twin of the human (Living Heart and others) | Organ and patient simulation for medical-device design and in-silico trials. | Medical-device makers, regulators | Long-running initiative |
| Brand | Description and capabilities | Target customer | Notes |
|---|---|---|---|
SOLIDWORKS | Desktop 3D CAD, simulation, PDM and electrical design (Elecworks). Annual releases, plus cloud-connected 3DEXPERIENCE SOLIDWORKS. | SMBs, engineering departments, education, makers | Acquired 1997. Had its best quarter since 2022 in Q4 2024. Strong 2026 momentum. |
3DEXPERIENCE Works | Cloud portfolio that brings 3DEXPERIENCE roles (design, simulation, PLM, manufacturing) to SMBs. | SMBs | Ongoing |
CENTRIC PLM (Centric Software) | PLM, merchandise planning, market intelligence, pricing and inventory optimisation, visual boards, and since 2025 Contentserv PIM/PXM. | Fashion, luxury, retail, footwear, consumer electronics, food & beverage, cosmetics | Majority stake acquired 2018. Transition to SaaS in 2025; strong return to growth in 2026. |
Contentserv | AI-powered Product Experience Cloud: product information management, digital asset management, content syndication and digital-shelf analytics. Over 1,600 customers in 90 countries. | FMCG brands, retailers, manufacturers | Acquired 2025 for €220m EV |
Financial Narrative
All figures are in euros. IFRS figures come from the annual earnings releases and Universal Registration Documents. Non-IFRS figures exclude share-based compensation, amortisation of acquired intangibles, other operating income and expense, and certain one-off items. Gross profit, total debt including leases, and the balance-sheet subtotals are taken from consolidated statement data.
Income statement, IFRS (€m unless stated):
IFRS operating income for FY2021–FY2023 is calculated from reported revenue and reported IFRS operating margin. FY2024 and FY2025 are as reported (€1,359.6m and €1,354.3m). IFRS basic EPS was €0.91 in both FY2024 and FY2025.
Income statement, non-IFRS (management basis):
The FY2021 constant-currency revenue growth figure is approximate. Non-IFRS operating income for FY2021–FY2023 is calculated from reported non-IFRS revenue and margin.
The IFRS revenue compound annual growth rate for FY2021–FY2025 is about 6.4%. Excluding the 2021–2022 currency tailwind, constant-currency growth has slowed every year since 2022. EBITDA is not reported by the company. Non-IFRS operating income, which excludes about €338m of acquired-intangible amortisation and €250m of share-based compensation in FY2025, is the closest management proxy. IFRS depreciation of property, equipment and right-of-use assets would be added on top to reach EBITDA.
Balance sheet (€m, Dec 31):
Shareholders' equity attributable to the parent was €8,792.5m at end-2025, against €9,066.6m at end-2024. Contract liabilities (deferred revenue) were €1,536.0m against €1,663.4m.
Interest coverage. Financing costs are negligible relative to earnings. The 2019 Medidata bonds carry coupons of 0.125% (2026 tranche, now repaid) and 0.375% (2029 tranche), and the company held €4.1bn of cash at end-2025, so operating income covers interest expense by a very wide margin. The cost of debt will rise with the 3.375% June 2031 bond. A conventional cash conversion cycle does not apply to a software company with negligible inventory. DSO and contract liabilities are the relevant working-capital indicators. Year-to-date cash conversion was 111% at Sep 30, 2026, against 97% a year earlier.
Commentary on trends and inflections
Revenue: FY2022 was the high point of the post-Medidata growth cycle: 9% constant-currency growth and 17% reported, helped by a strong US dollar. Growth then fell to 5% in FY2024 and 4% in FY2025. The causes were: (1) Medidata, where study starts fell; (2) a deliberate shift from licences to subscription, with licences down 6% in FY2025; (3) weak automotive markets in Europe; and (4) CENTRIC PLM's SaaS transition. Reported revenue was nearly flat in FY2025 (+0.4%) because of the weaker dollar and yen.
Margins: The non-IFRS operating margin fell from 34.3% in FY2021 to a low of 31.9% in FY2024 as the company invested in cloud, sales capacity and AI. It recovered by 40 basis points at constant currency to 32.0% in FY2025 on cost discipline. FY2026 guidance (32.5–32.7%) implies further expansion. The IFRS margin is about 10 points lower because of acquired-intangible amortisation and share-based compensation. These two items will stay material; the FY2026 guidance excludes about €343m of amortisation, including ArisGlobal.
Earnings: Non-IFRS EPS grew from €0.95 to €1.31 between FY2021 and FY2025, a compound rate of 8.4%, ahead of revenue thanks to deleveraging, buybacks and margin resilience. IFRS EPS rose from €0.58 to €0.90.
Balance sheet: Net debt of €0.9bn after Medidata turned into €1.53bn of net cash by end-2025. Goodwill and intangibles fell from €8.3bn to €6.9bn through amortisation and dollar weakness. They rose again to €8.66bn at Sep 30, 2026 after ArisGlobal.
Cash: Operating cash flow has held at €1.5–1.7bn a year, and free cash flow at about €1.4–1.5bn. More of that cash has gone to dividends and buybacks (about €680m in FY2025) and, in 2026, to acquisitions.
FY2026 year to date (non-IFRS unless stated; Q3 2026 earnings release):
IFRS operating margin for the nine months was 22.3%, against 18.6% a year earlier. IFRS diluted EPS was €0.66, against €0.57. At Sep 30, 2026, cash was €3,814.0m and borrowings €2,765.1m, giving a net financial position of about €1.05bn after the ArisGlobal cash outflow of €1,538.7m in Q3.
Unlock Company Financials
Unlock this company profile to view its financial data.
View Subscription PlansFinancial Detail
Product Lines
| Product line (software revenue, EUR Mn) | FY2024 | FY2025 |
|---|---|---|
Industrial Innovation | 3,019.6 | 3,134.5 |
Life Sciences | 1,144.2 | 1,081.1 |
Mainstream Innovation | 1,449.4 | 1,429.3 |
Total software revenue | 5,613.3 | 5,644.9 |
Product Lines (Constant-currency growth FY2025–Share of FY2025 software revenue)
| Product line | Constant-currency growth FY2025 | Reported growth FY2025 | Share of FY2025 software revenue |
|---|---|---|---|
Industrial Innovation | +6% | +4% | 56% |
Life Sciences | −2% | −6% | 19% |
Mainstream Innovation | +2% | −1% | 25% |
Product Lines (9M 2026 (EUR Mn)–Q3 2026 (EUR Mn))
| Product line | Q3 2026 (EUR Mn) | Q3 constant-currency growth | 9M 2026 (EUR Mn) | 9M constant-currency growth |
|---|---|---|---|---|
Industrial Innovation | 753.2 | +5% | 2,270.7 | +3% |
Mainstream Innovation | 374.6 | +8% | 1,122.1 | +10% |
Life Sciences | 265.7 | +1% | 776.7 | −2% |
Revenue by Segment
| Activity (EUR Mn) | FY2024 | FY2025 |
|---|---|---|
Licences and other software | 1,125.2 | 1,020.7 |
Subscription and support | 4,488.1 | 4,624.1 |
Services | 600.3 | 594.7 |
Unlock Company Financials
Unlock this company profile to view its financial data.
View Subscription PlansIncome Statement and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total revenue IFRS (EUR Mn) | 4,860.1 | 5,665.3 | 5,951.4 | 6,213.6 | 6,235.8 |
Revenue growth reported (%) | 12.3 | 16.6 | 5.1 | 4.4 | 0.4 |
Gross profit (EUR Mn) | 4,070 | 4,746 | 4,980 | 5,197 | 5,221 |
Gross margin (%) | 83.7 | 83.8 | 83.7 | 83.6 | 83.7 |
IFRS operating income (EUR Mn) | 1,021 | 1,303 | 1,244 | 1,360 | 1,354 |
IFRS operating margin (%) | 21.0 | 23.0 | 20.9 | 21.9 | 21.7 |
Pre-tax income (EUR Mn) | 1,004 | 1,306 | 1,301 | 1,478 | 1,459 |
Net income attributable to shareholders (EUR Mn) | 774 | 932 | 1,051 | 1,200 | 1,196 |
Net margin (%) | 15.9 | 16.4 | 17.7 | 19.3 | 19.2 |
IFRS diluted EPS (EUR) | 0.58 | 0.70 | 0.79 | 0.90 | 0.90 |
Dividend per share for the fiscal year (EUR) | 0.17 | 0.21 | 0.23 | 0.26 | 0.27 |
Unlock Company Financials
Unlock this company profile to view its financial data.
View Subscription PlansIncome Statement and Margin Analysis (%) — Non-IFRS revenue
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Non-IFRS revenue (EUR Mn) | 4,861.7 | 5,665.5 | 5,951.4 | 6,213.6 | 6,239.6 |
Constant-currency revenue growth (%) | 10 | 9 | 9 | 5 | 4 |
Non-IFRS operating income (EUR Mn) | 1,668 | 1,892 | 1,928 | 1,984 | 1,994 |
Non-IFRS operating margin (%) | 34.3 | 33.4 | 32.4 | 31.9 | 32.0 |
Non-IFRS diluted EPS (EUR) | 0.95 | 1.13 | 1.20 | 1.28 | 1.31 |
Financial Analysis
| Adjustment | FY2024 | FY2025 |
|---|---|---|
Share-based compensation and related social charges | 245.6 | 249.7 |
Amortisation of acquired intangibles and tangible-asset revaluation | 361.6 | 337.6 |
Other operating income and expense, net | 15.0 | 46.7 |
Lease incentives of acquired companies | 1.9 | 1.4 |
Deferred-revenue adjustment | 0.0 | 3.8 |
Total operating-expense adjustments | 624.2 | 635.5 |
Expense line (EUR Mn)
| Expense line (EUR Mn) | FY2024 | FY2025 |
|---|---|---|
Research and development | 1,286.2 | 1,323.3 |
Marketing and sales | 1,704.3 | 1,697.9 |
General and administrative | 470.5 | 461.3 |
Balance Sheet
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets (EUR Mn) | 14,219 | 14,261 | 14,623 | 15,546 | 15,059 |
Cash and cash equivalents (EUR Mn) | 2,980 | 2,769 | 3,568 | 3,953 | 4,125 |
Borrowings, current (EUR Mn) | 903 | 259 | 950 | 451 | 1,450 |
Borrowings, non-current (EUR Mn) | 2,966 | 2,737 | 2,041 | 2,043 | 1,146 |
Total borrowings excluding leases (EUR Mn) | 3,869 | 2,996 | 2,991 | 2,494 | 2,595 |
Net financial position, cash minus borrowings (EUR Mn) | -889 | -227 | 577 | 1,460 | 1,530 |
Total debt including lease liabilities (EUR Mn) | 4,471 | 3,577 | 3,601 | 3,062 | 3,169 |
Total equity (EUR Mn) | 6,211 | 7,325 | 7,846 | 9,081 | 8,798 |
Goodwill and other intangibles (EUR Mn) | 8,175 | 8,273 | 7,647 | 7,687 | 6,869 |
Working capital (EUR Mn) | 1,249 | 1,963 | 2,219 | 3,046 | 2,556 |
Trade receivables (EUR Mn) | 1,500 | 1,792 | 1,932 | 2,316 | 2,353 |
Cash Flow and Margin Analysis (%)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Operating cash flow IFRS (EUR Mn) | 1,613 | 1,525 | 1,565 | 1,660 | 1,630 |
Capital expenditure (EUR Mn) | 104 | 132 | 145 | 193 | 161 |
Free cash flow (EUR Mn) | 1,509 | 1,393 | 1,420 | 1,466 | 1,469 |
FCF margin on IFRS revenue (%) | 31.0 | 24.6 | 23.9 | 23.6 | 23.6 |
Cash acquisitions (EUR Mn) | 21 | 46 | 16 | 23 | 204 |
Dividends paid (EUR Mn) | 147 | 224 | 276 | 303 | 343 |
Share repurchases (EUR Mn) | 283 | 640 | 375 | 374 | 340 |
Debt repaid (EUR Mn) | 439 | 1,246 | 118 | 781 | 108 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
ROE on year-end equity (%) | 12.5 | 12.7 | 13.4 | 13.2 | 13.6 |
ROA on year-end assets (%) | 5.4 | 6.5 | 7.2 | 7.7 | 7.9 |
ROIC, non-IFRS EBIT after 25% notional tax over net invested capital (%) | 17.6 | 18.8 | 19.9 | 19.5 | 20.6 |
Current ratio (x) | 1.36 | 1.68 | 1.62 | 1.86 | 1.60 |
Borrowings to equity (x) | 0.62 | 0.41 | 0.38 | 0.27 | 0.30 |
Net financial debt to non-IFRS operating income, negative = net cash (x) | 0.53 | 0.12 | -0.30 | -0.74 | -0.77 |
Asset turnover (x) | 0.34 | 0.40 | 0.41 | 0.40 | 0.41 |
Days sales outstanding (days) | 113 | 115 | 118 | 136 | 138 |
Payout ratio on IFRS EPS (%) | 29 | 30 | 29 | 29 | 30 |
Cash Flow and Margin Analysis (%) (Quarterly)
| Metric | Q1 2026 | Q2 2026 | Q3 2026 | 9M 2026 |
|---|---|---|---|---|
Total revenue (EUR Mn) | 1,509.6 | about 1,556 | 1,551.9 | 4,617.4 |
Constant-currency growth | +3% | +4% | +5% | +4% |
Operating margin | 30.3% | about 29.9% | 31.6% | 30.6% |
Diluted EPS (EUR) | 0.30 | about 0.31 | 0.32 | 0.93 |
Operating cash flow IFRS (EUR Mn) | 949 | about 290 | 329.9 | 1,567.0 |
Revenue by Region
| Region (software revenue, EUR Mn) | FY2024 | FY2025 |
|---|---|---|
Americas | 2,214.7 | 2,224.7 |
Europe | 2,150.4 | 2,169.0 |
Asia | 1,248.1 | 1,251.2 |
Revenue by Region (%)
| Region (%) | FY2025 constant-currency growth | FY2025 reported growth | Share of FY2025 software revenue |
|---|---|---|---|
Americas | +5% | 0% | 39% |
Europe | +2% | +1% | 38% |
Asia | +5% | 0% | 22% |
Geographic Revenue
| Region | Q3 2026 (EUR Mn) | Q3 constant-currency growth | 9M 2026 (EUR Mn) | 9M constant-currency growth | 9M share |
|---|---|---|---|---|---|
Americas | 538.6 | −3% | 1,609.4 | +1% | 39% |
Europe | 527.7 | +9% | 1,595.9 | +5% | 38% |
Asia | 327.2 | +12% | 964.3 | +8% | 23% |
Valuation Snapshot
| Multiple | Value | Basis |
|---|---|---|
P/E, non-IFRS | 17.6x | FY2025 EPS €1.31 |
P/E, non-IFRS forward | 17.0x | FY2026 guidance midpoint €1.355 |
P/E, IFRS | 25.7x | FY2025 IFRS diluted EPS €0.90 |
EV/Sales | 4.7x | FY2026 guidance midpoint €6.43bn |
EV / non-IFRS operating income | 14.3x | FY2026 implied about €2.10bn |
P/B | 3.5x | Year-end FY2025 equity €8.8bn |
Dividend yield | 1.2% | €0.27 |
Dividend metric
| Dividend metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Dividend per share (EUR) | 0.17 | 0.21 | 0.23 | 0.26 | 0.27 |
Dividends paid in the calendar year (EUR Mn) | 147 | 224 | 276 | 303 | 343 |
Capital Instruments
| Instrument | Amount | Coupon | Maturity |
|---|---|---|---|
2019 bond, fourth tranche | €1,150m | 0.375% | Sep 16, 2029 |
2026 bond | €1,000m | 3.375% | Jun 16, 2031 |
Other borrowings (short-term financing, including the €750m NEU CP programme, and other facilities) | About €615m | Variable | Short term |
Revolving credit facility (undrawn at Jun 30, 2026) | €750m, with a €250m swingline and up to €500m accordion | — | Jun 2031, with extension options |
Analyst Conclusions
Management guidance (FY2026, non-IFRS, Oct 28, 2026). Revenue of €6.399–6.459bn (+4% to +5% ex-FX), operating margin of 32.5–32.7% and diluted EPS of €1.35–1.36 (+6% to +7% ex-FX). The Q4 2026 guide is +5% to +8% ex-FX, including about 2 points from ArisGlobal. Management has said Medidata is on track to return to growth from Q4 2026, and that ARR guidance will begin in 2027. Medium-term targets are due at the Nov 17, 2026 Capital Markets Day.
Consensus expectations. Before Q3, consensus pointed to low-to-mid single-digit revenue growth and mid-to-high single-digit EPS growth. The Q3 beat (€1.55bn revenue against €1.52bn expected; €0.32 EPS against €0.31) has pushed estimates toward the top of the raised range.
Bull case
-
The platform shift is reaccelerating. 3DEXPERIENCE software revenue grew 25% and cloud 14% in Q3 2026, and 3DEXPERIENCE Cloud is up 46% year to date. That supports a return to mid-to-high single-digit organic growth once licence erosion stabilises.
-
Life Sciences has bottomed and been re-founded. Medidata turned stable in Q3 2026 (+1%). ArisGlobal adds about $175m of AI-native revenue, the company says the deal adds to EPS in year one, and new dedicated leadership is in place.
-
Valuation and strategic optionality. At about 4.7x EV/Sales and about 17x forward non-IFRS P/E, with net cash and €1.5bn+ of yearly operating cash flow, the stock trades well below what Schneider is paying for PTC (about 8.6x). The NVIDIA, semiconductor and AI-factory twins open new markets.
Bear case
-
Structural growth gap. Even raised FY2026 guidance (+4–5%) is a fraction of Autodesk's +18%. FY2025 guidance was cut twice. Repeated disappointment may mean the growth slowdown is structural and not cyclical.
-
Acquisition-led Life Sciences risk. Medidata fell in 2024, 2025 and 9M 2026. Doubling down with a $1.8bn deal at about 10x forward revenue adds integration and goodwill risk (€8.66bn of goodwill and intangibles).
-
AI disintermediation and governance. AI-native tools could erode seat-based pricing before Dassault Systèmes' AI revenue scales (roughly €50–100m signalled for 2026). Combining the Chairman and CEO roles under a controlling shareholder limits outside pressure for change.
Key catalysts (next 12 months)
Capital Markets Day: Timing: Nov 17, 2026; What to watch: Medium-term revenue, margin and EPS targets; AI monetisation model; ARR ambitions
Q4 2026 results and FY2027 guidance: Timing: Feb 3, 2027; What to watch: Whether Q4 lands at +5–8%; first ARR guidance; FY2027 growth range
Medidata trajectory: Timing: Q4 2026 – Q2 2027; What to watch: Return to growth as promised
ArisGlobal integration: Timing: 2027; What to watch: Revenue contribution, cross-sell, AI earn-out milestones
3DEXPERIENCE World 2027: Timing: Feb 2027; What to watch: Progress on NVIDIA world models and Virtual Companions with customers
Schneider–PTC regulatory process: Timing: Through Q3 2027; What to watch: Competitive repositioning and customer churn opportunities
Turkish competition investigations: Timing: 2026–2027; What to watch: Outcome and any fine
FX (EUR/USD, EUR/JPY): Timing: Ongoing; What to watch: Reported growth and EPS sensitivity
Analyst verdict. Dassault Systèmes enters the end of 2026 in a better position than its share price in the first half of the year implied. The disappointments of October 2025 and February 2026 broke a long record of steady compounding. Together with the founder's sudden exit and the sector-wide fear of AI disruption, they cut the stock's value by more than half from its 2024 levels. Yet the underlying business never stopped behaving like a high-quality franchise. Gross margin is about 84%, the non-IFRS operating margin is above 32%, recurring revenue is over 80% of software and cash conversion is above 100%. The balance sheet funded a $1.8bn acquisition while keeping net cash and an A rating.
The 2026 quarters improved in sequence: 3% growth in Q1, 4% in Q2 and 5% in Q3, with platform and cloud metrics accelerating. That suggests the core industrial franchise is healthy and that Life Sciences, not industrial demand, was the main cause of the slowdown. ArisGlobal is an expensive but logical move: it turns a struggling clinical franchise into a broader regulated-operations platform. Its success depends on execution under new leadership.
The central unresolved question is monetisation. Dassault Systèmes has stated a credible technical vision of science-grounded industrial AI, reinforced by NVIDIA's endorsement and by practical footholds in semiconductor fab twins and AI-factory design. So far, though, it has not quantified the revenue clearly enough for investors to believe it. The November 17 Capital Markets Day is therefore the pivotal event. Credible medium-term targets that show reacceleration toward high single digits, alongside margin expansion and visible AI revenue, could close part of the valuation gap with recent sector transactions. Another round of cautious framing would leave the stock valued as a slow-growth cash generator.
On balance, the risk-reward has moved from negative to balanced-to-positive. Downside is cushioned by valuation (about 17x forward earnings), net cash and a defensive installed base. Upside requires proof that 3D UNIV+RSES and the Life Sciences rebuild can move the growth rate, not just the narrative. For semiconductor-ecosystem stakeholders, Dassault Systèmes is a credible and well-financed partner for fab, equipment and AI-infrastructure virtual twins. Its commercial scale in that niche is still developing behind the incumbent EDA and equipment-maker ecosystems.
Unlock Company Financials
Unlock this company profile to view its financial data.
View Subscription PlansExecutive Leadership
Executive Leadership Team
| Name | Title | Tenure / background |
|---|---|---|
Pascal Daloz | Chairman of the Board and Chief Executive Officer | Joined in 2001 as head of R&D and business development. Later CFO, COO, Deputy CEO (2023), CEO (Jan 2024) and Chairman and CEO (Feb 21, 2026). Director since 2020. Chairman of MEDIDATA and OUTSCALE. Independent director of STMicroelectronics and of Sopra Steria. Graduate of École des Mines de Paris; earlier career in strategy and technology-innovation roles at investment banks and consulting firms. |
Rouven Bergmann | Chief Financial Officer | Former CFO of Medidata Solutions; group CFO through the 2023–2026 reporting cycles |
Dr. Ashwini Zenooz | EVP and CEO, Life Sciences & Healthcare | Appointed Oct 2026 to lead the combined Medidata, BIOVIA and ArisGlobal life-sciences ambition |
Chris Groves | CEO, Centric Software | Leads the CENTRIC PLM subsidiary and the Contentserv integration |
Charles Edelstenne | Founder and Honorary Chairman | Co-founder in 1981; Chairman until January 2023 |
Bernard Charlès | Former Executive Chairman | Co-founder; CEO 1995–2023; Chairman 2023–Feb 2026. Stepped down from the board for personal reasons on Feb 21, 2026. Remains available as a product and technology adviser. |
Directors' Remuneration
| Component | Pascal Daloz (CEO in 2025) |
|---|---|
Fixed salary | About €1.0m (roughly 8% of total pay) |
Annual variable | Performance-based, including a multi-criteria ESG indicator weighted at 20% of total criteria |
Long-term incentive | 450,000 performance shares granted May 22, 2025, with a 15% holding obligation |
Total reported compensation, including share awards at grant value | About €13.0m |
Competitive Landscape
Competitors by Segment
| Area | Competitors | Relative positioning of Dassault Systèmes |
|---|---|---|
High-end CAD, PLM and digital manufacturing | Siemens Digital Industries Software (NX, Teamcenter, Opcenter); PTC (Creo, Windchill), being acquired by Schneider Electric; Aras; SAP (PLM/ERP) | Co-leader with Siemens. Dominant in aerospace and in European and Japanese automotive. Siemens is stronger in automation-integrated manufacturing. |
Simulation (CAE) | Synopsys (including Ansys); Siemens Simcenter (including Altair); Hexagon (MSC Software); Cadence (including BETA CAE) | Strong in non-linear structures (Abaqus), electromagnetics (CST) and fluids (PowerFLOW). Faces larger combined simulation-plus-EDA rivals after Synopsys–Ansys. |
Mainstream CAD and design | Autodesk (Inventor, Fusion); PTC Onshape; Siemens Solid Edge | SOLIDWORKS is a leading desktop 3D CAD franchise. Autodesk is larger in AEC and growing faster overall. |
Manufacturing operations and industrial data | Siemens Opcenter; Rockwell Automation (Plex); AVEVA (Schneider); Cognite (being acquired by Schneider) | DELMIA is a strong manufacturing operations management platform. Schneider is building an integrated software stack. |
Life sciences: clinical | Veeva Systems; Oracle Health Sciences; IQVIA technologies | Medidata is a leader in electronic data capture and trial platforms but has lost momentum. Veeva is the main platform competitor. |
Life sciences: safety and regulatory | Veeva (Vault Safety/RIM); Oracle Argus; IQVIA | ArisGlobal gives Dassault Systèmes a top-tier pharmacovigilance platform |
Scientific informatics | Schrödinger; Benchling; Revvity Signals | BIOVIA is a broad incumbent; AI-native challengers are emerging |
Consumer and fashion PLM | PTC FlexPLM; Infor; Lectra | Centric is the market leader |
Infrastructure | Bentley Systems; Autodesk; Hexagon | Smaller presence (8% of revenue) |
Semiconductor fab and equipment twins | Siemens (Calibre ecosystem and Opcenter for semiconductors); Applied Materials and Lam (in-house twins); Synopsys (TCAD); NVIDIA Omniverse partners | Differentiated on multiscale physics and full-fab twin breadth; still emerging commercially |
Peer Comparison FY2025
| Company | Latest fiscal year revenue | Revenue growth | Notes |
|---|---|---|---|
Dassault Systèmes | €6.24bn (FY Dec 2025) | +4% constant currency | Non-IFRS operating margin 32.0%; R&D about 20% of revenue |
Autodesk | $7.21bn (FY Jan 2026) | +18% | Recurring revenue about 97%; Q4 FY2026 non-GAAP operating margin 38% |
PTC | About $2.75bn (expected 2026) | Not comparable (deal pending) | Agreed sale to Schneider at $23.7bn EV, about 8.6x expected 2026 revenue |
