Dassault Systèmes (DSY) Q3 2026 Investor call earnings summary

Executive summary

• Q3 non-IFRS revenue grew 5% in constant currencies and 6% reported; ARR rose 6% and non-IFRS operating margin expanded 150 bps to 31.6%.

• FY26 objectives were raised to 4%-5% revenue growth, 32.5%-32.7% operating margin and 6%-7% diluted EPS growth; objectives include ArisGlobal.

• Strategic priorities include scaling agentic AI and virtual twins, integrating ArisGlobal into Life Sciences, and strengthening customer and partner execution.

Financial highlights

• Q3 non-IFRS revenue was €1,551.9M, up 6% reported and 5% ex-FX; software revenue grew 5% ex-FX to €1.394B and services rose 7% to €158M.

• Q3 licenses and other software revenue increased 14% to €219M; subscription and support revenue rose 3%, while recurring revenue was 84% of software revenue.

• Q3 non-IFRS operating income was €490.2M, up 11% reported; operating margin was 31.6% versus 30.1%, and diluted EPS was €0.32, up 10% reported and 8% ex-FX.

• YTD26 revenue was €4,617.4M, up 4% ex-FX; non-IFRS operating income was €1,413.8M and diluted EPS was €0.93, up 7% ex-FX.

• YTD operating cash flow was €1.567B, up 20% ex-FX; free cash flow rose 25% ex-FX to €1.388B, with cash conversion of 111%.

Outlook and guidance

• FY26 non-IFRS revenue objective is €6.399B-€6.459B, with 4%-5% growth ex-FX; software growth is 4%-5% and services growth 6%-8%.

• FY26 non-IFRS operating margin objective is 32.5%-32.7%; diluted EPS is €1.35-€1.36, with 6%-7% growth ex-FX and 3%-4% reported growth.

• Q4 objectives are revenue growth of 5%-8%, operating margin of 37.2%-37.8%, and diluted EPS of €0.42-€0.43; ArisGlobal adds 2 points to revenue growth.

• FY26 currency assumptions are $1.16/€ and JPY180.5/€; Q4 assumptions are $1.14/€ and JPY170/€. Objectives exclude acquisitions or restructurings completed after September 30, 2026.