Dassault Systemes Shares Fall After Revenue Guidance Cut

By Adria Calatayud

Dassault Systemes shares fell sharply after the company lowered its full-year revenue guidance and reported third-quarter results below analysts' expectations.

Shares in Dassault were down 15% in European afternoon trading Thursday, taking the stock down nearly 24% since the start of the year.

The French software company said it now expects full-year revenue to grow by between 4% and 6% when excluding currency changes, citing its trajectory to date. This is down from its previous forecast of 6% to 8%. The company also reduced the lower end of its profitability guidance, projecting an operating margin range of 32% to 32.4% that compares with prior expectations of 32.2% to 32.4%. Dassault's guidance is for adjusted metrics, stripping out certain expenses and other one-time items.

While the company reiterated its outlook for earnings per share growth excluding currency movements, investors probably want to see top-line growth, not earnings optimization, analysts at Jefferies said in a research note.

For the third quarter, Dassault reported an adjusted operating profit of 439.9 million euros, up from 432.6 million euros in the year-earlier period. Revenue was broadly flat at 1.46 billion euros.

Analysts polled by Visible Alpha had forecast adjusted operating profit at 447.3 million euros and revenue at 1.50 billion euros.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

October 23, 2025 07:41 ET (11:41 GMT)