Dassault Systèmes SE (EPA:DAST) reported a fourth quarter in which profit and top-line results missed analyst expectations, weighed down by persistent weakness in the European automotive sector.
Quarterly results
For the three months ended December 31, earnings per share rose to 0.33 euros from 0.30 euros year-on-year, but this result fell short of forecasts of 0.416 euros. On a non-IFRS basis, EPS stood at 0.40 euros, essentially unchanged from the prior year.
Quarterly revenue declined 4% to 1.68 billion euros, below the 1.75 billion euros consensus. For the full year 2025, revenue held steady at 6.23 billion euros and EPS was flat at 0.90 euros.
Drivers and outlook
The company said strong growth in the Americas and Asia supported results for 2025, but gains were partially offset by headwinds originating in a softer European automotive market. Dassault Systèmes develops digital design tools used across industrial sectors including automotive and aviation.
Looking ahead, management described plans to build "new levers of growth and profitability by introducing unique industrial AI offerings." As part of its transition to a cloud-based business model, the company will begin reporting an annual run rate from 2026 to provide greater visibility during the shift.
Dassault Systèmes provided guidance for 2026 that calls for revenue growth between 3% and 5%, operating margin expansion of 40 to 80 basis points, and EPS growth in the range of 3% to 6%.
Implications
- The quarterly shortfall highlights sensitivity to cyclical demand in the European automotive sector.
- Growth and margin guidance for 2026 is modest, reflecting both the company s cloud transition and expectations for monetizing new industrial AI products.
- Regional performance diverged in 2025, with the Americas and Asia outpacing Europe.
Management s emphasis on industrial AI and an annual run-rate metric aims to clarify revenue streams as the company shifts toward a cloud-first model. The guidance projects only incremental improvement year-over-year for 2026, suggesting a measured pace for recovery and monetization.