Dassault Systèmes (DSY) Q2 2026 Investor call earnings summary

Executive summary

• Q2 2026 revenue grew 4% year-over-year to €1.56 billion, with subscription revenue up 8% and EPS up 8%, driven by strong 3DEXPERIENCE and cloud adoption in Manufacturing Industries.

• Expansion in Life Sciences, highlighted by the acquisition of ArisGlobal, positions the company as a leader in AI-driven platforms for the sector.

• Annual Run Rate (ARR) rose 6% year-over-year to €4.44 billion, reflecting the strengthening subscription-based business model.

• Confirmed full-year non-IFRS objectives, leveraging first-half achievements and strategic expansion in Life Sciences.

Financial highlights

• Total Q2 revenue: €1.556 billion (+4% year-over-year); subscription revenue up 8%; services revenue up 6%.

• H1 2026 revenue: €3.065 billion (+3%); operating margin 30.1% (+40 bps); EPS €0.61 (+6%).

• Operating profit up 7%, operating margin at 30% (+90 bps); EPS €0.31 (+8% ex-FX).

• Operating cash flow H1: €1.24 billion (+11%); free cash flow up 13% ex-FX; cash conversion at 134%.

• Cash and equivalents at end of June: €5.66 billion; net cash position €2.28 billion.

Outlook and guidance

• Full-year 2026 non-IFRS revenue guidance: €6.296–€6.416 billion (+3–5% ex-FX); operating margin 32.2–32.6%; EPS €1.30–€1.34 (+3–6% ex-FX).

• Q3 2026 revenue expected at €1.497–€1.537 billion (+3–5% ex-FX); operating margin 31–31.1%; EPS €0.30–€0.31 (+4–7% ex-FX).

• ArisGlobal acquisition expected to be revenue growth and EPS accretive in the first year post-close.