Dassault Systèmes Reports Modest Growth in 2025, Targets 3 to 5% for 2026
On Wednesday, Dassault Systèmes released its 2025 results, showing moderate revenue growth and a strong operating margin. The company expects growth to accelerate in 2026, driven by Cloud adoption and the monetization of its industrial artificial intelligence solutions.
Financial Performance in 2025
Dassault Systèmes' total revenue reached 6.24 billion euros in 2025, up by 4% at constant exchange rates. Software revenue increased by 4% to 5.64 billion euros, notably driven by a 6% growth in recurring revenue, which now represents 82% of total software revenue compared to 80% the previous year. The 3D EXPERIENCE and Cloud activities showed distinct performances, with a 10% increase for 3D EXPERIENCE and 8% for Cloud at constant exchange rates. This momentum translated into a non-IFRS operating margin of 32.0%, up by 40 basis points, while non-IFRS diluted net earnings per share rose to 1.31 euros, up 7% at constant exchange rates. In the fourth quarter, growth slowed to 1% in total revenue, placing the company at the lower end of its target range. The non-IFRS operating margin for the last quarter was 37.0%, up by 90 basis points.
New Metrics and Regional Performance
The company introduced a new metric, annualized recurring revenue (ARR), to provide better visibility into its future trajectory. ARR grew by 6% year-over-year to reach 4.50 billion euros in the fourth quarter. Geographically, the Americas and Asia saw a respective 5% increase in software revenue, while Europe grew by 2%. Life sciences experienced a 2% decline in software revenue to 1.08 billion euros, affected by a decrease in study volumes at Medidata. Innovation for SMEs grew by 2% to 1.43 billion euros, with strong momentum from Solidworks offsetting the high base effects at Centric PLM. The net financial position strengthened to 1.53 billion euros as of December 31, 2025, up from 1.46 billion the previous year. The company allocated 1.63 billion euros to operational cash flow, primarily used for the acquisition of Contentserv for 189 million euros and an increased stake in Centric Software for 252 million euros.
Outlook for 2026
For 2026, the company has set non-IFRS targets projecting total revenue growth between 3% and 5%, with an operating margin ranging from 32.2% to 32.6%. Non-IFRS diluted net earnings per share are expected to be between 1.30 and 1.34 euros, representing a growth of 3% to 6% at constant exchange rates. These forecasts reflect the expectation of accelerated subscription revenue and Cloud growth, boosted by the gradual adoption of industrial artificial intelligence solutions. The company anticipates an operating margin expansion of 40 to 80 basis points. Management also announced a strategic partnership with Nvidia to develop new industrial World Models for large-scale generative AI. Dassault Systèmes will hold its Capital Markets Day in November 2026 to detail its long-term growth strategy.
