Dassault Systèmes (DSY) Q2 2026 Investor call earnings summary

Executive summary

• FY26 and Q2 2026 revenue grew 4% year-over-year, with EPS up 8% and strong 3DEXPERIENCE and Cloud adoption, especially 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, reflecting a strengthening subscription-based business model.

• Full-year non-IFRS objectives confirmed, leveraging strategic expansion and digital transformation.

Financial highlights

• Non-IFRS total revenue for YTD26 reached €3,065M, up 4% year-over-year; software revenue grew 3%, recurring revenue rose 5%.

• Operating margin improved to 30.1% YTD26 and 30.0% in Q2 2026; IFRS margin at 23.0% in Q2.

• Non-IFRS EPS increased 6% to €0.61 for YTD26; Q2 non-IFRS EPS up 8% to €0.31.

• ARR reached €4.44B, up 6% year-over-year.

• Free cash flow increased 13% year-over-year, with cash conversion at 134%.

Outlook and guidance

• FY26 non-IFRS revenue guidance: €6,296–€6,416M (+3–5% growth); EPS guidance: €1.30–€1.34 (+3–6%).

• Operating margin expected at 32.2–32.6% for FY26.

• Tax rate projected at ~17.1%; FX assumptions: $1.17/€ and JPY177.1/€.