Dassault Systèmes (DSY) Q4 2025 earnings summary

Executive summary

• FY25 total revenue reached €6.24B, up 4% year-over-year, with recurring revenue at 82% of software revenue and operating margin at 32%; Q4 revenue was €1.682B, up 1%.

• Strategic progress in cloud, 3DEXPERIENCE, and AI, including partnerships (notably NVIDIA) and new AI-native solutions, positions the company for accelerated execution in 2026.

• Transformation efforts focus on product portfolio reshaping, go-to-market strengthening, and a shift to subscription and value-based pricing models.

• Growth was driven by 3DEXPERIENCE (up 10% in FY25) and Cloud (up 8% in FY25), with expansion in Life Sciences and Consumer industries despite headwinds.

• Operating margin improved to 32% for FY25, with non-IFRS EPS up 7% to €1.31.

Financial highlights

• FY25 non-IFRS total revenue was €6.24B (+4% constant currency); Q4 revenue €1.682B (+1%); recurring revenue up 6% to 82% of software revenue.

• FY25 non-IFRS operating income was €1.994B, margin 32% (+0.4 pts YoY); Q4 operating margin 37% (+0.7 pts); non-IFRS EPS €1.31 (+7% YoY).

• Free cash flow for FY25 was €1.38B, up 1% YoY; cash conversion rate at 82%.

• Cash and equivalents at year-end were €4.13B–€4.125B; net cash position €1.53B.

• ARR reached €4.5B in Q4 2025, up 6% year-over-year.

Outlook and guidance

• FY26 non-IFRS revenue guidance is €6.29–6.41B, up 3–5%; software revenue growth also 3–5%; operating margin targeted at 32.2–32.6%.

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

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

• Subscription revenue is expected to surpass maintenance in 2026; ARR is a new key metric, with guidance to follow in 2027.

• Life Sciences (Medidata) expected to stabilize in 2026, with growth initiatives for 2027.