French software maker Dassault Systèmes has today reported fourth-quarter revenue growth and 2026 revenue guidance which disappointed investors, leaving its shares on track for their worst trading day ever.
The company’s shares were down roughly 20% this morning.
JPMorgan analysts said that fourth quarter growth came in below sell-side consensus of around 3% and even below some bearish buyside expectations of 2%.
The results were “worse than even the most negative had feared in an unforgiving software tape,” they said.
“This type of growth disappointment in the unforgiving software tape we’re in is likely to result in a negative share price reaction,” the analysts said.
Dassault Systemes’ 2026 revenue growth guidance of 3-5% at constant currency also missed expectations, with most investors anticipating 4-6% or 5-7%.
“Given the +1% growth in Q4, investors may still question the achievability of the weaker-than-expected 3-5% guidance,” JPMorgan said.
Dassault Systemes reported full-year 2025 revenue of €6.24 billion, up 4% at constant currency. Fourth quarter revenue rose 1% to €1.68 billion.
The company’s 3DExperience platform and cloud offerings grew 10% and 8% respectively for the year, fuelled by major contracts.
The life sciences division housing the Medidata clinical trials business, saw revenue decline 2% for the year as pharmaceutical companies cut back on study starts.
Revenue from its industrial innovation software grew 6% and remains the company’s growth engine.
For 2026, Dassault Systèmes forecast an operating margin between 32.2% and 32.6%, and earnings per share of €1.30 to €1.34.
