Dassault Systèmes (DSY) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 4% year-over-year, with subscription revenue up 8% and EPS up 8%, exceeding guided ranges.

• Strong execution on digital transformation, cloud adoption, and industrial AI deployment, with 3DEXPERIENCE and cloud software revenue up 14%.

• Major milestone: acquisition of ArisGlobal, creating a unified AI intelligence platform and strengthening Life Sciences.

• Full-year objectives confirmed, leveraging first-half achievements and ongoing transition to subscription and cloud.

Financial highlights

• Q2 2026 total revenue: €1.556 billion, up 4%; H1 revenue: €3.065 billion, up 3–4%; subscription revenue up 8%; service revenue up 6%.

• Operating margin at 30% in Q2 and 30.1% YTD, up 0.4 pts; non-IFRS diluted EPS: €0.31 in Q2 (+8%), €0.61 in H1 (+6%).

• Free cash flow up 13% year-over-year; cash conversion at 134%.

• ARR reached €4.44 billion, up 6% year-over-year, with double-digit subscription ARR growth.

• Cash and equivalents at €5.66 billion as of June 30, 2026; net cash position at €2.28 billion.

Outlook and guidance

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

• Q3 2026 guidance: revenue €1.497–€1.537 billion (+2–5%), operating margin 31.0–31.1%, EPS €0.30–€0.31.

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

• Tax rate guidance at ~17.0%.

• Guidance excludes impacts from new acquisitions or restructuring after June 30, 2026.