Core Insights - Dassault Systèmes reported solid third-quarter results for 2025, showcasing strong operational performance and reaffirming full-year EPS growth on adjusted revenue outlook [2][3][4] Financial Performance - Total revenue for Q3 2025 increased by 5% to €1.46 billion, with software revenue also up by 5% [9][16] - Recurring revenue rose by 9%, driven by a 16% increase in subscription revenue [9][10] - Non-IFRS operating margin improved to 30.1%, up 100 basis points compared to the previous year [8][9] - Non-IFRS diluted EPS grew by 10% to €0.29 for the quarter [9][10] Revenue Breakdown - Industrial Innovation software revenue increased by 9% to €717 million, representing 55% of total software revenue [15][16] - Life Sciences software revenue decreased by 3% to €257 million, accounting for 20% of software revenue [17] - Mainstream Innovation software revenue rose by 4% to €341 million, representing 26% of software revenue [17] Geographic Performance - Revenue from the Americas grew by 7%, contributing 41% of software revenue [16] - European revenue increased by 4%, representing 36% of software revenue, with strong performance in France and Germany [16] - Asia's revenue rose by 4%, led by growth in India and Korea, accounting for 22% of software revenue [16] Strategic Initiatives - The company emphasized its commitment to AI integration within its 3DEXPERIENCE platform, highlighting innovative solutions like Virtual Twin as a Service [6][7] - The shift towards subscription models is gaining momentum, with recurring revenue now accounting for 84% of software revenue year-to-date [10][11] Future Outlook - The company adjusted its full-year revenue growth outlook to 4-6%, down from the previous 6-8% [9][12] - The diluted EPS target for the full year remains at 7-10% growth [12][19]
Dassault Systèmes: Solid third quarter with strong operational performance: Confirming full-year EPS growth on adjusted revenue outlook