Company Reports

Dassault's second-quarter results and third-quarter guidance were broadly in line with FactSet consensus. In tandem, Dassault announced its intention to acquire ArisGlobal for $1.8 billion plus a $200 million earnout. Shares rose 6% intraday July 23.

Dassault Systèmes is the world leader in mechanical computer-aided design software. Its high-end CAD software, Catia, is the industry standard in automotive, aerospace, and industrial products, while its mainstream CAD software, SolidWorks, is the leading product in the small and midsize enterprises market. Besides CAD, Dassault also has leading positions in other related software categories like product lifecycle management and simulation for manufacturing industries. The company has established a strong presence in the life sciences software market with Medidata, the leading electronic data capture software for managing clinical trials. Dassault earns revenue by selling its software as a service in the cloud and on-premises with associated maintenance fees.

Dassault Systèmes' first-quarter results and second-quarter guidance were broadly in line with FactSet consensus. Shares rose 2% on April 23.

Dassault Systèmes is the world leader in mechanical computer-aided design software. Its high-end CAD software, Catia, is the industry standard in automotive, aerospace, and industrial products, while its mainstream CAD software, SolidWorks, is the leading product in the small and midsize enterprises market. Besides CAD, Dassault also has leading positions in other related software categories like product lifecycle management and simulation for manufacturing industries. The company has established a strong presence in the life sciences software market with Medidata, the leading electronic data capture software for managing clinical trials. Dassault earns revenue by selling its software as a service in the cloud and on-premises with associated maintenance fees.

Dassault Systèmes is the world leader in mechanical computer-aided design software. Its high-end CAD software, Catia, is the industry standard in automotive, aerospace, and industrial products, while its mainstream CAD software, SolidWorks, is the leading product in the small and midsize enterprises market. Besides CAD, Dassault also has leading positions in other related software categories like product lifecycle management and simulation for manufacturing industries. The company has established a strong presence in the life sciences software market with Medidata, the leading electronic data capture software for managing clinical trials. Dassault earns revenue by selling its software as a service in the cloud and on-premises with associated maintenance fees.

Dassault's fourth-quarter results missed guidance and FactSet consensus, while 2026 guidance is also below consensus. Weaker-than-expected growth is the main driver. Shares fell 21% on Feb. 11.

Dassault's shares were down 15% intraday as the company missed third quarter revenue guidance and cut 2025 constant currency revenue growth guidance to 4%-6% from 6%-8%.

Dassault Systèmes is the world leader in mechanical computer-aided design software. Its high-end CAD software, Catia, is the industry standard in automotive, aerospace, and industrial products while its mainstream CAD software, SolidWorks, is the leading product in the small and midsize enterprises market. Besides CAD, Dassault also has leading positions in other related software categories like product lifecycle management and simulation for manufacturing industries. The company has established a strong presence in the life sciences software market with Medidata, the leading electronic data capture software for managing clinical trials. Dassault earns revenue by selling its software as a service in the cloud and on-premises with associated maintenance fees.

Dassault's second-quarter results slightly missed FactSet consensus and third-quarter guidance only indicates moderate improvement despite an easy comparative. While 2025 constant-currency revenue growth guidance was maintained, this is dependent on a strong fourth quarter. Shares fell 8%.

Dassault Systèmes is the world leader in mechanical computer-aided design software. Its high-end CAD software, Catia, is the industry standard in automotive, aerospace, and industrial products while its mainstream CAD software, Solidworks, is the leading product in the small and midsize enterprises market. Besides CAD, Dassault also has leading positions in other related software categories like product lifecycle management and simulation for manufacturing industries. The company has established a strong presence in the life sciences software market with Medidata, the leading electronic data capture software for managing clinical trials. Dassault earns revenue by selling its software as a service in the cloud and on-premises with associated maintenance fees.

Dassault Systèmes' first-quarter 2025 results and second-quarter guidance indicate a slow start to the year. 2025 guidance was confirmed, but achievement is dependent on strong performance in the second half. Shares fell 5%.

We've transferred coverage of Dassault Systèmes to a new analyst. Dassault is the leader in the 3D product lifecycle management market, which includes 3D software for design, simulation, product data management and collaboration.

Dassault Systèmes is the world leader in mechanical computer-aided design software. Its high-end CAD software, Catia, is the industry standard in automotive, aerospace, and industrial products while its mainstream CAD software, Solidworks, is the leading product in the small and midsize enterprises market. Besides CAD, Dassault also has leading positions in other related software categories like product lifecycle management and simulation for manufacturing industries. The company has established a strong presence in the life sciences software market with Medidata, the leading electronic data capture software for managing clinical trials. Dassault earns revenue by selling its software as a service in the cloud and on-premises with associated maintenance fees.

Dassault Systemes shares rose 9% on big contract wins from Volkswagen and Lockheed Martin. Fourth-quarter 2024 results and fiscal 2025 guidance were in line with FactSet consensus.

Dassault Systemes reported third-quarter results slightly under our expectations and on the low end of management's expectations. The computer-assisted design firm isn't immune to general deal delays seen throughout the industry and the third quarter had worse performance in the automotive market in Europe and the US than expected. As a result, revenue guidance for the year was taken down a notch, although the earnings outlook is reconfirmed. We reiterate our EUR 37 fair value estimate for the wide-moat firm, which leaves shares fairly valued, in our view. We continue to believe that the headwinds Dassault is experiencing are short-term in nature and the company's strong switching costs remain well intact.

We are reiterating our EUR 37 fair value estimate for Dassault Systèmes after in-line second-quarter results, which has our confidence unshaken in the firm's ability to earn ample long-term returns from its wide moat. While the shift to subscriptions from upfront licenses is muting results at the moment, this dynamic is temporary. Dassault continue to make nice progress on adoption of its cloud platform, which we think is hard to do with Dassault's more risk-averse industrial customer base. Still, we view shares as fairly valued.

We maintain our EUR 37 fair value estimate for wide-moat Dassault Systemes after the firm reported first-quarter results that were slightly light compared with our expectations. Management also affirmed previously issued full-year guidance and provided a second-quarter outlook consistent with our model. We conclude that the firm is on track to meet its 2024 targets and is making progress in expanding subscription-based revenue, which we believe serves the best interest of shareholders. The stock has dropped from a high of EUR 48 in January, and we now view it as fairly valued. Despite near-term headwinds, we think the firm is well-positioned to benefit from the growing computer-assisted design and product lifecycle management markets, which we believe will hit $52 billion by 2032, indicating an 8% 10-year compound annual growth rate.

We maintain our EUR 37 fair value estimate for wide-moat Dassault Systèmes after the firm reported fourth-quarter results largely in line with our expectations. We are pleased with the firm’s progress in increasing subscription-based revenue, as we believe this will ultimately benefit long-term returns. Management provided 2024 and first-quarter targets, baking in guidance for softer license sales as the firm focuses on subscription conversions, as well as foreign-exchange headwinds. While the stock dropped around 10% on Feb. 1 due to the lower-than-expected guidance, we still view it as overvalued. Despite near-term headwinds, we think the firm is well positioned to benefit from the growing computer-assisted design and product lifecycle management markets, which we believe will hit $52 billion by 2032, indicating an 8% 10-year compound annual growth rate.

Dassault Systèmes has a hold on the computer-assisted design software market for autos, aerospace and defense, and manufacturing. With 90% of all aircraft and 80% of all autos globally made via Dassault software, we believe the company will stay well entrenched with engineering teams with help from its significant switching costs and network effect found in its midmarket CAD software, SolidWorks. In our view, the wide-moat company has adapted well to new trends in its market exposures, such as electric vehicle design software, which has made us more confident in the longevity of its moat and ability to achieve excess returns on invested capital.

Dassault Systèmes reported results right in line with our expectations—thanks to a boost in upfront license revenue and strength in its industrial innovation software. While this quarter saw upfront license revenue strength, conversion to subscriptions is progressing at a healthy pace—which we think will bode well in the long term, carrying a host of benefits from increased customer retention to easier upselling. The firm is still experiencing meaty foreign exchange headwinds, but with this baked in previously, management has maintained its outlook for the year. Shares are up 2% upon results and remain near our EUR 37 fair value estimate, which we reiterate for the wide-moat firm. While we believe Dassault shares are fairly valued at the moment, for investors looking to enter the moaty CAD software market, we think Autodesk is attractively priced given our $247 fair value estimate, as the firm boasts additional undervalued greenfield opportunities—like building information modelling, or BIM.