Dassault Systemes S.A. (ADR) (DASTY)
OTHER OTC:DASTY
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Dassault Systemes SA
(OTC:DASTY)
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Rating:64Neutral
Price Target:
$22.50
▼(-19.61% Downside)
Action:DowngradedDate:02/18/26
The score is supported by strong underlying financial quality (profitability, cash generation, and improving leverage) and a cautiously constructive outlook featuring margin expansion, ARR/subscription momentum, and early AI traction. It is held back most by very weak technicals (downtrend across moving averages and negative MACD) and near-term growth risks reflected in conservative guidance and business headwinds (MEDIDATA/Centric and end-market softness).
Positive Factors
Strong cash generation & margins
Dassault Systemes consistently converts earnings into cash: gross margins ~83–84% and free cash flow ran ~0.88–0.94x net income through 2021–2024. This durable cash generation supports R&D, cloud investment and balance sheet flexibility, making capital allocation resilient over cycles.
Negative Factors
Near-term revenue softness & conservative guidance
Slower organic top-line growth reduces the pace at which scale benefits and new cloud/AI revenue materialize. Conservative 2026 guidance narrows near-term upside, increases reliance on productivity improvements for EPS growth, and constrains visibility into medium‑term revenue acceleration.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & margins
Dassault Systemes consistently converts earnings into cash: gross margins ~83–84% and free cash flow ran ~0.88–0.94x net income through 2021–2024. This durable cash generation supports R&D, cloud investment and balance sheet flexibility, making capital allocation resilient over cycles.
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Dassault Systemes SA (DASTY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.67B
Dividend Yield1.07%
Average Volume (3M)75.51K
Price to Earnings (P/E)18.0
Beta (1Y)0.62
Revenue Growth5.22%
EPS Growth6.27%
CountryUS
Employees26,225
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.47
Shares Outstanding1,341,456,000
10 Day Avg. Volume193,875
30 Day Avg. Volume75,510
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)3.56
Price to Sales (P/S)5.02
P/FCF Ratio21.30
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue3.49
Enterprise Value/Gross Profit4.17
Enterprise Value/Ebitda10.48
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.56
Revenue Forecast (FY)$7.43B
Dassault Systemes SA Business Overview & Revenue Model
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 communicati...
How the Company Makes Money
Dassault Systemes generates revenue through a combination of software licenses, subscription services, and consulting services. The primary revenue stream comes from the sale of software licenses for its 3DEXPERIENCE platform and its various appli...
Dassault Systemes SA Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Neutral
The call delivered a mixed but constructive message: the company has strong fundamentals—profitability, cash generation, cloud and ARR momentum, and strategic positioning in industrial AI with credible partnerships and early commercial traction. However, 2025 underperformed relative to targets, with notable headwinds from MEDIDATA, Centric and European auto weakness; management provided conservative 2026 guidance and flagged timing/recognition mismatches while rolling out new monetization models that carry execution risk. The balance of solid financial resilience and strategic progress against material near-term growth challenges results in cautious optimism.Positive Updates
Full Year 2025 Revenue and Profitability
Total revenue for FY2025 was EUR 6,240 million; software revenue grew 4% (ex-FX). Operating profit was EUR 1,994 million with an operating margin of 32% (+40 bps YoY). EPS for FY2025 was EUR 1.31, up 7%.
Negative Updates
Below-Target Growth in 2025
Management acknowledged 2025 was disappointing, finishing at the low end of objectives with ~4% growth (ex-FX), missing internal long-term plan targets.
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Q4-2025 Updates
Positive
Negative
Full Year 2025 Revenue and Profitability
Total revenue for FY2025 was EUR 6,240 million; software revenue grew 4% (ex-FX). Operating profit was EUR 1,994 million with an operating margin of 32% (+40 bps YoY). EPS for FY2025 was EUR 1.31, up 7%.
Read all positive updates
Company Guidance
Management guided 2026 to a derisked total- and software-revenue growth range of 3–5% ex FX, with operating margin expected to improve 40–80 bps ex FX to 32.2–32.6% and EPS up 3–6% ex FX to EUR 1.30–1.34 (FX assumption USD/EUR 1.18, JPY/EUR 170). Q1 guidance is for 1–5% revenue growth, a margin of 29.2–30.7% and EPS EUR 0.28–0.31; management reiterated the shift to subscription (subscription to surpass maintenance in 2026) and will start reporting ARR in 2026 with formal guidance from 2027. Key 2025 and near-term metrics cited to frame the outlook: ARR ≈ EUR 4.5bn at Q4’25 (net ARR +~EUR 100m in Q4; ARR avg growth ~6% over two years), 2025 total revenue EUR 6,240m, Q4 revenue EUR 1,682m (+1% ex FX), recurring revenue +6% FY (recurring = 82% of software revenue), subscription +11% FY (+4% Q4), cloud +8% FY (+9% Q4) and 3DEXPERIENCE revenue +10% FY (3DEXPERIENCE Cloud +32% FY); Q4 operating profit was EUR 622m (margin 37%, +90 bps ex FX) and FY operating profit EUR 1,994m (margin 32%, +40 bps) with FY EPS EUR 1.31.Dassault Systemes SA Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.24B | 6.21B | 5.95B | 5.67B | 4.86B |
| Gross Profit | 5.22B | 5.20B | 4.98B | 4.75B | 4.07B |
| EBITDA | 1.90B | 1.92B | 1.81B | 1.94B | 1.59B |
| Net Income | 1.20B | 1.20B | 1.05B | 931.50M | 773.70M |
Balance Sheet | |||||
| Total Assets | 15.06B | 15.55B | 14.62B | 14.26B | 14.22B |
| Cash, Cash Equivalents and Short-Term Investments | 4.13B | 3.95B | 3.57B | 2.77B | 2.98B |
| Total Debt | 3.17B | 3.06B | 3.60B | 3.58B | 4.47B |
| Total Liabilities | 6.26B | 6.47B | 6.78B | 6.94B | 8.01B |
| Stockholders Equity | 8.79B | 9.07B | 7.83B | 7.31B | 6.20B |
Cash Flow | |||||
| Free Cash Flow | 1.47B | 1.47B | 1.42B | 1.39B | 1.51B |
| Operating Cash Flow | 1.63B | 1.66B | 1.57B | 1.53B | 1.61B |
| Investing Cash Flow | -404.30M | -191.70M | -161.60M | -213.90M | -160.40M |
| Financing Cash Flow | -789.40M | -1.21B | -536.70M | -1.59B | -711.90M |
Dassault Systemes SA Technical Analysis
Neutral
27.99
Price Trends
21.59
Negative
24.67
Negative
28.69
Negative
Market Momentum
-0.40
Negative
49.62
Neutral
52.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DASTY, the sentiment is Neutral. The current price of 27.99 is above the 20-day moving average (MA) of 20.06, above the 50-day MA of 21.59, and below the 200-day MA of 28.69, indicating a neutral trend. The MACD of -0.40 indicates Negative momentum. The RSI at 49.62 is Neutral, neither overbought nor oversold. The STOCH value of 52.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DASTY.
Dassault Systemes SA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $15.97B | 31.21 | 22.47% | ― | 19.18% | 96.62% | |
70 Outperform | $9.94B | 51.21 | 23.93% | 0.72% | 11.12% | -26.24% | |
69 Neutral | $30.82B | 66.22 | 7.97% | ― | 13.35% | -60.76% | |
67 Neutral | $47.93B | 47.92 | 39.89% | ― | 15.62% | 2.59% | |
65 Neutral | $23.74B | 63.31 | -43.31% | ― | 15.91% | 29.42% | |
64 Neutral | $27.67B | 17.96 | 13.97% | 1.07% | 5.22% | 6.27% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
DASTY
Dassault Systemes SA
20.97
-16.81
-44.50%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.