France's Dassault Systèmes Q2 revenue beats; acquires ArisGlobal


Overview

  • France industrial software firm's Q2 revenue rose 4% and beat analyst expectations

  • Adjusted EPS for Q2 rose 8% in constant currencies

  • Company acquired ArisGlobal to expand in Life Sciences


Outlook

  • Dassault Systèmes confirms 2026 non-IFRS revenue guidance of €6.296 bln to €6.416 bln

  • Company expects 2026 non-IFRS diluted EPS of €1.30 to €1.34

  • Dassault Systèmes expects ArisGlobal acquisition to be revenue and EPS accretive in first year post-close


Result Drivers

  • SUBSCRIPTION & CLOUD GROWTH - Q2 revenue was driven by 14% growth in 3DEXPERIENCE and cloud software, mainly from Manufacturing Industries

  • MAINSTREAM INNOVATION - SOLIDWORKS and CENTRIC delivered strong growth, with SOLIDWORKS unit growth up double digits and CENTRIC achieving significant competitive wins

  • PRODUCTIVITY GAINS - Operating margin expanded to 30% due to focused productivity improvements and lower share-based compensation costs


Company press release: ID:nGNE167bxH


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Beat

EUR 1.56 bln

EUR 1.54 bln (10 Analysts)

Q2 Adjusted EPS

EUR 0.31

Q2 EPS

EUR 0.22

Q2 Adjusted Operating Margin

30.00%

Q2 Operating Margin

23.00%


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 13 "hold" and 4 "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy."

  • Wall Street's median 12-month price target for Dassault Systemes SE is €21.00, about 18.2% above its July 22 closing price of €17.76

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago


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