Dassault Systèmes (DSY) Q4 2025 Investor Call earnings summary

Executive summary

• FY25 total revenue reached €6,240M, up 4% year-over-year at constant currency, with software revenue comprising 82% of the total and recurring revenue up 6%.

• Operating margin improved to 32.0% for FY25, with EPS up 7% to €1.31; Q4 margin was 37%.

• The company is transitioning to a subscription-driven, cloud-based model, introducing AI-powered solutions and 3D Universes, and focusing on ARR reporting.

• Strategic partnerships, notably with NVIDIA, and management changes in Centric and Medidata are underway to accelerate growth.

• FY26 guidance targets 3–5% revenue growth, 3–6% EPS growth, and continued investment in AI and cloud expansion.

Financial highlights

• FY25 non-IFRS total revenue: €6,240M (+4% constant currency); Q4: €1,682M (+1%).

• FY25 non-IFRS operating income: €1,993.6M; margin: 32.0%; EPS: €1.31 (+7%).

• Recurring revenue grew 6% to 82% of software revenue; subscription revenue up 11%.

• Free cash flow for FY25 was €1,380M; operating cash flow €1.63B; net cash position €1.53B.

• Cash and cash equivalents at year-end were €4.1B.

Outlook and guidance

• FY26 non-IFRS revenue expected at €6,290M–€6,410M, up 3–5%; operating margin 32.2%–32.6%.

• EPS guidance for FY26 is €1.30–1.34, up 3–6%.

• Q1 2026 revenue guidance: €1.48–€1.54B, down 2–6% YoY; margin 29.2%–30.7%; EPS €0.28–0.31.

• ARR introduced as a key metric, reaching €4.5B in Q4 2025, with 6% average growth over two years.

• Focus areas include expanding AI monetization, cloud transition, and 3D Universes.