Dassault Systèmes (DSY) Q4 2025 Investor Call earnings summary

Executive summary

• FY25 total revenue reached €6,240M, up 4% year-over-year, with software revenue comprising 82% of the total and a strategic shift toward subscription-driven, cloud-based, and AI-powered solutions.

• Operating margin improved to 32% for FY25, with EPS up 7% to €1.31; recurring revenue grew 6% and subscription revenue rose 11%.

• Cloud and 3DEXPERIENCE platforms drove growth, with 3DEXPERIENCE software revenue up 32% and cloud revenue up 8% for FY25.

• Strategic partnerships, notably with NVIDIA, are central to building industrial AI capabilities and world models.

• FY26 guidance targets 3–5% total revenue growth and 3–6% EPS growth, with continued focus on operational efficiency, AI, and cloud expansion.

Financial highlights

• Q4 2025 total revenue rose 1% ex-FX to €1,682M; software revenue flat; recurring revenue 76% of software revenue.

• FY25 non-IFRS operating income was €1,993.6M, margin 32%; Q4 operating profit was €622M, margin 37%.

• EPS: €0.40 in Q4, €1.31 for the year, both up 9% and 7% ex-FX respectively.

• Operating cash flow €1.63B, free cash flow €1.38B, cash conversion 82%; net cash position at year-end €1.53B; cash and equivalents €4.13B.

• DSO increased to 117 days at Q4 2025, up 8 days from Q4 2024.

Outlook and guidance

• FY26 non-IFRS revenue expected between €6,290M and €6,410M, up 3–5% year-over-year; operating margin 32.2%–32.6%; EPS €1.30–€1.34.

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

• ARR introduced as a key metric, reaching €4.5B in Q4 2025, with 6% year-over-year growth and €104M net new ARR in the quarter.

• Subscription revenue to surpass maintenance revenue in 2026.

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