Dassault Systèmes (DSY) Q2 2025 earnings summary

Executive summary

• Q2 and H1 2025 delivered solid results with total revenue up 6% in Q2 and 5% in H1, driven by strong subscription and 3DEXPERIENCE performance, and EPS reaching €0.30 in Q2.

• The business showed resilience and momentum in transportation, mobility, space, defense, energy, and AI-driven cloud infrastructure.

• Life Sciences was flat overall, but saw a shift from R&D to manufacturing and mid-teens growth outside MEDIDATA; notable customer wins and regulatory compliance advances were achieved.

• Infrastructure & Cities segment expanded into data centers, focusing on sustainability and energy efficiency.

• AI and regulatory compliance emerged as significant growth drivers, with new solutions and strategic partnerships launched.

Financial highlights

• Q2 2025 non-IFRS total revenue was €1.52 billion (+6% y/y); H1 revenue reached €3.10 billion (+5% y/y); software revenue up 6% in Q2 and 5% in H1.

• Recurring revenue comprised 83% of software revenue in H1, with subscription revenue up 10% in Q2 and 13% YTD.

• Q2 2025 non-IFRS operating margin was 29.3%; H1 margin 30.1%; Q2 non-IFRS EPS was €0.30, H1 non-IFRS EPS €0.61.

• Cash and cash equivalents at H1 2025 end were €4.08 billion; net cash position €1.51 billion.

• Cash flow from operations for H1 2025 was €1.15 billion, up from €1.13 billion in H1 2024.

Outlook and guidance

• Full-year 2025 non-IFRS guidance: total and software revenue growth of 6–8%, EPS growth of 7–10%, and operating margin of 32.2–32.4%.

• Q3 2025 non-IFRS revenue guidance: €1.485–1.535 billion, with software up 5–9% and subscriptions 10–15%.

• Recurring revenue expected to grow 7–8%, with subscription growth of 13–15%.

• Guidance excludes impacts from new acquisitions, restructuring, and certain one-time items.

• Mid-term ambition is to double non-IFRS diluted EPS by 2029, leveraging 3D UNIV + RSES and generative AI.