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1. Company Snapshot

1.a. Company Description

Dassault Systèmes SE provides software solutions and services worldwide.It offers SOLIDWORKS design software for 3D design, electrical and printed circuit board design, product data management, simulation, manufacturing, and technical communication; CATIA, an engineering and design software for product 3D computer-aided design; GEOVIA for modeling and simulating the earth; and BIOVIA that provides the scientific community with advanced biological, chemical, and materials experiences.The company also provides SIMULIA that delivers realistic simulation applications; DELMIA, which enables global industrial operations; 3DVIA that provides 3D space planning solutions; and ENOVIA that enables to plan and track the definition of success for customer.


In addition, it offers Centric PLM, a product lifecycle management software solution; 3DEXCITE, a real-time 3D visualization software; NETVIBES, which enables organizations to gather, align, and enrich big data; 3DEXPERIENCE platform that provides organizations a holistic and real-time view of their business activities and ecosystem, as well as connecting people, ideas, data, and solutions together in a single environment; and MEDIDATA, a clinical research study software that provides evidences and insights to pharmaceutical, biotech, medical device, and diagnostic companies, as well as academic researchers.Further, the company provides consulting, deployment, outcome based, and training services.It primarily serves companies in the transportation and mobility; industrial equipment; aerospace and defense; high-tech; life sciences and healthcare; energy and materials; home and lifestyle; construction, cities, and territories; consumer packaged goods and retail; marine and offshore; and business services sectors through distributors and resellers.


Dassault Systèmes SE was incorporated in 1981 and is headquartered in Vélizy-Villacoublay, France.

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1.b. Last Insights on DSY

Dassault Systèmes' recent performance was negatively impacted by weak software sales and soft 2026 guidance, triggering investor concerns about the company's growth story. The company's adjusted operating profit declined, and its annual guidance disappointed investors. Despite a challenging year, Dassault Systèmes focuses on strategic partnerships and AI innovations to drive future growth. The company initiated 2026 revenue guidance of 3-5% growth. Additionally, Dassault Systèmes has been repurchasing shares, with a disclosure of trading in own shares on February 18, 2026.

1.c. Company Highlights

2. Dassault Systèmes: A Year of Transition and Execution

Dassault Systèmes reported total revenue of EUR 6,240 million for 2025, with software revenue growth of 4% and recurring revenue growth of 6%. The operating profit was EUR 1,994 million, with an operating margin of 32%. The earnings per share (EPS) came in at EUR 0.3952, slightly below the estimated EUR 0.409. The company's cash flow was robust, with an operating cash flow of EUR 1,630 million, up 1% on a constant currency basis.

Publication Date: Feb -12

📋 Highlights
  • Total Revenue Growth: EUR 6,240 million reported in 2025, with software revenue growth of 4% and recurring revenue up 6%.
  • 3DEXPERIENCE Platform Dominance: Generated 40% of software revenue by 2025, up from prior years, driven by cloud adoption and market share gains.
  • 2026 Guidance: 3–5% revenue growth ex FX, operating margin target of 32.2–32.6%, and ARR reaching EUR 4.5 billion by Q4 2025.
  • Regional Performance: Europe declined 5% in Q4 due to automotive sector challenges but grew 2% annually; Asia surged 6% in Q4.

Segmental Performance

The company's industrial innovation segment was up 1% in Q4 and 6% for the full year, driven by solid traction in SIMULIA and ENOVIA, and continued growth with CATIA. The 3DEXPERIENCE platform now accounts for 40% of software revenue. However, the Life Sciences segment faced continued headwinds, resulting in a 4% decline in Q4 and a 2% decline for the full year. The mainstream segment grew 1% in Q4 and 2% for the full year, driven by strong momentum of SOLIDWORKS.

Guidance and Outlook

The company expects total revenue and software revenue growth of 3% to 5% ex FX for the full year of 2026. The operating margin is expected to achieve 40 to 80 basis points improvement ex FX. The annual recurring revenue (ARR) run rate reached EUR 4.5 billion in Q4 2025, with an increase of around EUR 100 million of net ARR in the quarter. According to Rouven Bergmann, the visibility for subscription growth is consistent with the ARR, and the company is focused on building a strong enterprise business.

Valuation

With a P/E Ratio of 20.38 and an EV/EBITDA of 11.15, the company's valuation appears reasonable. The ROE of 13.57% and ROIC of 9.27% indicate a decent return on equity and invested capital. Analysts estimate next year's revenue growth at 6.8%, which is higher than the company's guidance. The Dividend Yield is 1.44%, and the Free Cash Flow Yield is 6.19%. The Net Debt/EBITDA ratio is -0.66, indicating a net cash position.

Transformation and Growth Drivers

Dassault Systèmes is undergoing a profound transformation to a subscription-driven future, driven by its cloud platform strategy and the evolution of its offerings, with AI at its core. The company is investing in high-tech data centers, the energy sector, aero and space, industrial equipment, and the auto sector. The growth drivers for 2026 include the large client base and long runway to penetrate it with 3DEXPERIENCE cloud and AI portfolio. Pascal Daloz mentioned that they are directing more capital to external growth, such as acquiring new AI startups, rather than share buyback.

3. NewsRoom

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AI Takes Center Stage at NEXT New York: Medidata Showcases AI Companions and Orchestrated Intelligence Transforming Life Sciences

Mar -10

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Medidata Expands Partnership with The Menarini Group, Deploying Medidata’s Study Build AI Technology to Accelerate Global Oncology Pipeline

Mar -09

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Dassault Systèmes: declaration of the number of outstanding shares and voting rights as of February 28, 2026

Mar -06

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Assessing Dassault Systèmes (ENXTPA:DSY) After A 53% One-Year Share Price Drop

Mar -05

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Computer Aided Engineering Company Evaluation Report 2025: Synopsys + Ansys, Siemens + Altair and Dassault Systèmes Drive Growth with Multiphysics Simulation, Digital Twins, Cloud-Based Engineering

Mar -05

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Dassault Systèmes Deepens AI Role In Drug Development And Manufacturing

Mar -05

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Dassault and Airbus are Turning FCAS Into a Public Spat

Mar -04

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Medidata and CRIO Empower Over 2,500 Global Research Sites with Seamless Integration to Accelerate Clinical Trials

Mar -04

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.20%)

6. Segments

The Sale of Software Solutions and Services

Expected Growth: 10.2%

Dassault Systèmes SE’s growth is driven by increasing demand for product lifecycle management and 3D design software, as well as the need for digital transformation in industries such as aerospace, automotive, and healthcare.

7. Detailed Products

CATIA

3D design and engineering software for creating and simulating complex systems

ENOVIA

Collaborative innovation and product lifecycle management (PLM) software

SOLIDWORKS

3D computer-aided design (CAD) software for mechanical design and engineering

DELMIA

Digital manufacturing and production planning software

SIMULIA

Simulation and analysis software for product performance and behavior

Apryse

Cloud-based 3D design and collaboration software

3DEXPERIENCE

Cloud-based platform for product design, engineering, and simulation

8. Dassault Systèmes SE's Porter Forces

Forces Ranking

Threat Of Substitutes

Dassault Systèmes SE operates in the software industry, specifically in the computer-aided design (CAD) and 3D design market. While there are alternative software solutions available, such as Autodesk's AutoCAD and SolidWorks, the company's strong brand reputation, extensive product offerings, and compatibility with various industries make it a preferred choice for many customers. However, the increasing demand for cloud-based and open-source solutions could pose a moderate threat.

Bargaining Power Of Customers

Dassault Systèmes SE serves a diverse customer base across various industries, including aerospace, automotive, and architecture. While customers may have some negotiating power due to the availability of alternative solutions, the company's software is widely used and has become an industry standard. This limits customers' ability to dictate prices or demand significant concessions.

Bargaining Power Of Suppliers

The company sources components and materials from various suppliers, but it is not heavily reliant on any single supplier. Additionally, Dassault Systèmes SE has a strong financial position, which allows it to negotiate favorable terms with suppliers. The company's focus on software development also reduces its dependence on physical components.

Threat Of New Entrants

The software industry, particularly the CAD and 3D design market, has high barriers to entry due to the need for significant investments in research and development, marketing, and customer support. Established players like Dassault Systèmes SE have a strong brand presence, extensive product portfolios, and large customer bases, making it challenging for new entrants to gain traction.

Intensity Of Rivalry

The software industry is highly competitive, with established players like Autodesk, Siemens, and PTC. Dassault Systèmes SE competes with these companies in various markets, and the competition is intense. The company's strong product offerings and brand reputation help it maintain market share, but it must continue to innovate and invest in marketing and customer support to stay ahead of competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 21.57%
Debt Cost 4.33%
Equity Weight 78.43%
Equity Cost 7.56%
WACC 6.87%
Leverage 27.50%

11. Quality Control: Dassault Systèmes SE passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Asseco SEE

A-Score: 6.1/10

Value: 4.4

Growth: 6.7

Quality: 6.6

Yield: 4.4

Momentum: 9.0

Volatility: 5.3

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Sword

A-Score: 6.0/10

Value: 4.2

Growth: 5.6

Quality: 5.5

Yield: 9.4

Momentum: 4.0

Volatility: 7.3

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Linedata Services

A-Score: 5.8/10

Value: 7.3

Growth: 6.4

Quality: 7.4

Yield: 6.2

Momentum: 0.0

Volatility: 7.7

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Garmin

A-Score: 4.7/10

Value: 1.8

Growth: 6.4

Quality: 8.4

Yield: 3.8

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

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SAP

A-Score: 4.2/10

Value: 1.1

Growth: 4.2

Quality: 8.4

Yield: 1.9

Momentum: 3.0

Volatility: 6.7

1-Year Total Return ->

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Dassault Systèmes

A-Score: 4.1/10

Value: 2.2

Growth: 6.3

Quality: 8.1

Yield: 1.2

Momentum: 1.0

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

18.02$

Current Price

18.02$

Potential

-0.00%

Expected Cash-Flows