Despite Dassault Systèmes improving its operating margin in the fourth quarter, the company's latest release has been met with an icy initial reception by the market. The stock is down 14% in pre-market trading, dragged lower by 2025 results that fell short of expectations and conservative 2026 forecasts.
"Dassault Systèmes disappoints once again." Maximilien Pascaud, who covers the company at AlphaValue, did not mince words this morning. The group reported a non-IFRS earnings per share (EPS) of €0.40 for the fourth quarter of 2025, up 9% at constant exchange rates, with a non-IFRS operating margin that improved by 90 basis points to 37%. The figures are slightly below expectations, still weighed down by the Life Sciences division, while the 3DEXPERIENCE branch remains dynamic.
"The main weakness, however, lies in the 2026 guidance, which is seen as very cautious for a company whose valuation is justified by a historically double-digit growth profile," Pascaud continues. Indeed, Dassault Systèmes is targeting, for the current year and on a non-IFRS basis, total revenue growth of 3 to 5% at constant currency, an operating margin between 32.2 and 32.6%, and EPS between €1.30 and €1.34.
Management believes it needs some time to "industrialize AI" before regaining new momentum. The market's patience is running thin for a stock that has lost its tech star status after two years of marked declines on the stock market.
The share price was plunging in pre-market trading, ahead of a first presentation conference scheduled for 10:00 am.
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%).
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