Dassault Systèmes (DSY) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 4% year-over-year, with subscription revenue up 8% and EPS up 8%, driven by strong 3DEXPERIENCE and cloud adoption in Manufacturing Industries.

• Expanded Life Sciences leadership with the acquisition of ArisGlobal, creating a unified AI-enabled platform for the sector.

• 3DEXPERIENCE platform evolves into an agentic, AI-native solution, driving customer value across industries.

• Confirmed full-year non-IFRS objectives, leveraging first-half achievements and ongoing transition to subscription and cloud.

• Net income attributable to equity holders increased 26% to €611.8 million; diluted EPS was €0.44, up 22%.

Financial highlights

• Total Q2 revenue: €1.556 billion, up 4%; subscription revenue up 8%; service revenue up 6%.

• H1 2026 revenue: €3.065 billion, up 3–4% at constant currencies; software revenue at 91% of total, recurring revenue at 83% of software revenue.

• Operating margin improved to 30.1% YTD, up 0.4 pts; IFRS operating margin at 23.0%, up 7.1 pts.

• Free cash flow up 13% year-over-year; cash conversion at 134% for H1.

• Net cash position at €2.28 billion as of June 30, 2026; cash and equivalents at €5.66 billion.

Outlook and guidance

• Full-year 2026 non-IFRS revenue guidance: €6.296–6.416 billion, 3–5% growth ex FX; EPS guidance: €1.30–1.34, up 3–6%.

• Operating margin expected at 32.2–32.6%; tax rate guidance at ~17.0%.

• Q3 2026 revenue expected at €1.497–1.537 billion, up 2–5%; EPS €0.30–0.31.

• Guidance excludes impacts from new acquisitions or restructuring after June 30, 2026.

• ArisGlobal acquisition impact on 2026 financials expected to be limited due to timing.