Dassault Systèmes reports its IFRS unaudited estimated financial results for the second quarter 2026 and first half ended June 30, 2026. The Group’s Board of Directors approved these estimated results on July 22, 2026. This press release also includes financial information on a non-IFRS basis and reconciliations with IFRS figures in the Appendix.
Summary Highlights1
(Second quarter 2026 unaudited, IFRS & non-IFRS, operating cash flow in IFRS,
all growth rates in constant currencies, unless otherwise noted)
- Total revenue up 4% in 2Q26 driven by subscription up 8%
- 3DEXPERIENCE software revenue and cloud software revenue both up 14%, mainly driven by Manufacturing Industries
- Annual Run Rate growth of 6% versus last year2, reflecting the continued strengthening of our business model
- Non-IFRS operating margin of 30%, and non-IFRS diluted EPS up 8% at €0.31
- Operating cash flow up 11% in the first half, supported by strong cash conversion
- Confirming non-IFRS full-year objectives, capitalizing on first half achievements
- Dassault Systèmes expands the 3DEXPERIENCE AI-native agentic platform with new Virtual Companion skills to co-engineer with humans
- Expanding our leadership in Life Sciences with the acquisition of ArisGlobal, creating a unified AI intelligence platform connecting molecule, patient & real-world outcomes
Dassault Systèmes’ Chief Executive Officer and Chairman of the Board Commentary
Pascal Daloz, Dassault Systèmes’ Chief Executive Officer and Chairman of the Board, commented:
“We delivered another quarter in line with our objectives, with sequential improvement reflecting the continued strengthening of our subscription model and growing customer momentum. Major competitive wins, accelerating cloud adoption, and continued diversification reinforce our confidence in delivering sustainable growth.
We further strengthened our position across High-Tech, New Space, and Consumer industries, with more customers adopting the 3DEXPERIENCE Cloud as the platform of choice to prepare for AI-powered Virtual Twins at enterprise scale.
Our conviction in Life Sciences has never been stronger. As the industry enters a new era shaped by AI-driven innovation, advanced therapies, and increasing regulatory complexity, the next wave of productivity will not come from disconnected point solutions. It will come from a unified platform connecting discovery, clinical development, manufacturing, quality, safety, and regulatory intelligence.
Today's acquisition of ArisGlobal marks a major step forward in executing that vision. By combining our leadership in scientific modeling and simulation with their expertise in safety and regulatory intelligence, we are creating the industry’s first AI platform that unifies real-world evidence with virtual evidence. This will help customers accelerate innovation, strengthen compliance, and bring more effective therapies to patients faster. Together, we are uniquely positioned to lead the digital transformation of Life Sciences.
As AI is becoming the new interface to industry, our 3DEXPERIENCE platform is evolving into an agentic platform, where Virtual Companions work alongside engineers, designers, scientists and manufacturers to accelerate decision-making and execution. Built on decades of scientific knowledge, industry expertise and enterprise data and simulation, they deliver trusted and actionable intelligence while preserving the scientific accuracy, governance and workflow continuity our customers depend on. By bringing together modeling, simulation, enterprise data and AI, we are building the next generation of industrial co-creation platform, helping customers transform their businesses faster, more sustainably and with greater confidence."
Dassault Systèmes’ Chief Financial Officer Commentary
(operating margin, operating cash flow and diluted EPS (“EPS”) growth rates in constant currencies, data on a non-IFRS basis, operating cash flow in IFRS,
data for the second quarter, unless otherwise noted)
Rouven Bergmann, Dassault Systèmes’ Chief Financial Officer, commented:
"Good Q2 performance keeps us firmly on track for the full year. We're not just executing on our objectives, we are transforming the company, launching new categories of AI solutions, all while improving cash flow and margin. This is growth and discipline together.
Our key growth drivers accelerated - 3DEXPERIENCE and Cloud revenue up 14% - as clients scale the transformation of their operations to capture AI‑powered Virtual Twin opportunities.
Our business model transition continues to progress with ARR increasing 6%3 driven by double-digit growth subscription ARR and Life Sciences contribution beginning to ramp.
Operationally, we expanded our operating margin to 30.0%, reflecting focused productivity gains, and EPS was up 8%. In the first half, we generated €1.24 billion in operating cash flow up 11%, improving our cash conversion compared to last year.
Turning to capital allocation, the acquisition of ArisGlobal represents a rare strategic opportunity to expand our leadership in Life Sciences, while preserving the necessary capacity for future investments. We expect the transaction to be both revenue growth and EPS accretive in the first year post-close.
As we look ahead, we confirm our 2026 outlook.”
Second Quarter 2026 Versus 2025 Financial Comparisons
(unaudited, IFRS and non-IFRS unless otherwise noted,
all revenue growth rates in constant currencies)
- Total Revenue: Total revenue in the second quarter grew 4% to €1.56 billion, and software revenue rose 4% to €1.40 billion. Subscription & support revenue rose 5%; recurring revenue represented 81% of software revenue. Licenses and other software revenue were up 1% to €272 million. Services revenue increased 6% to €155 million.
- ARR: In the second quarter, ARR grew 6% year-over-year to reach €4.44 billion on a constant currency basis4, reflecting the continued strengthening of our business model.
- Software Revenue by Geography: The Americas revenue increased 5%, driven by Manufacturing Industries, in particular Home & Lifestyle, High-Tech and Industrial Equipment. The Americas represented 37% of software revenue.
Europe (38% of software revenue) was flat after strong growth in Q1, on weakness in the Automotive sector in Mainland Europe, partially offset by double-digit growth in Northern Europe. Energy, Industrial Equipment and Aerospace & Defense showed healthy growth.
Asia (25% of software revenue) was up 8%, delivering an excellent quarter particularly in India, Korea and Japan. In China, revenue was lower, with pipeline improving. Transportation & Mobility and High-Tech saw a strong momentum.
- Software Revenue by Product Line:
- Industrial Innovation software revenue was up 5% to €768 million. This solid performance was led by strong growth in 3DEXPERIENCE and Cloud with CATIA, ENOVIA and DELMIA driving the momentum.
- Mainstream Innovation software revenue increased by 8% to €380 million. SOLIDWORKS continued its broad-based momentum across geographies, with unit growth up double digits. CENTRIC delivered an excellent performance in Q2, highlighted by several significant competitive wins.
- Life Sciences & Healthcare software revenue was down 4% to €252 million. MEDIDATA revenue decreased by 3%. MEDIDATA benefited from solid bookings in the first half, driving positive growth in ARR as of Q2.
- Software Revenue by Industry: Transportation & Mobility, Aerospace & Defense, Home & Lifestyle and Industrial Equipment were the main contributors to growth this quarter.
- Key Strategic Drivers: 3DEXPERIENCE software revenue increased 14% and represented 43% of 3DEXPERIENCE Eligible software revenue, compared to 41% last year. Cloud software revenue grew 14%, representing 28% of software revenue during the period.
This performance underscores the good traction with customers adopting and expanding to the 3DEXPERIENCE platform, as they look to transform their operations to capture AI-powered Virtual Twin opportunities in the future.
- Operating Income and Margin: IFRS operating income increased 48% to €358 million, as reported, with lower share-based compensation and related social charges. Non-IFRS operating income increased 5% to €467 million, as reported, and increased 7% in constant currencies. The IFRS operating margin stood at 23.0% compared to 15.9% in the second quarter of 2025. The non-IFRS operating margin totaled 30.0%, versus 29.3% in the same period of last year.
- Diluted Earnings per Share: IFRS diluted EPS was €0.22, increasing 33% as reported. Non-IFRS diluted EPS grew to €0.31, up 5% as reported and up 8% in constant currencies.
First Half 2026 Versus 2025 Financial Comparisons
(unaudited, IFRS and non-IFRS unless otherwise noted,
all revenue growth rates in constant currencies)
- Total Revenue: In the first half, total revenue grew 3% in non-IFRS and 4% in IFRS to €3.07 billion. Software revenue increased 3% to €2.78 billion. Subscription and support revenue rose 3% to €2.30 billion; recurring revenue represented 83% of total software revenue. Licenses and other software revenue increased 4% to €472 million. Services revenue was up 5% to €290 million.
- Software Revenue by Geography: The Americas grew by 2%, Europe increased by 3% and Asia was up 6%, representing respectively 39%, 38% and 23% of software revenue.
- Software Revenue by Product Line:
- Industrial Innovation software revenue rose 2% to €1.52 billion and represented 55% of software revenue. ENOVIA was one of the strongest contributors to growth.
- Life Sciences software revenue decreased 3% to €511 million, representing 18% of software revenue.
- Mainstream Innovation software revenue increased by 11% to €747 million. Mainstream Innovation represented 27% of software revenue.
- Software Revenue by Industry: Home & Lifestyle, Transportation & Mobility and Industrial Equipment were among the strongest contributors to growth.
- Key Strategic Drivers: 3DEXPERIENCE software revenue increased by 10%, representing 42% of 3DEXPERIENCE Eligible software revenue. Cloud software revenue grew 11% in non-IFRS, and represented 27% of software revenue. 3DEXPERIENCE Cloud software revenue increased 46% in constant currencies.
- Operating Income and Margin: IFRS operating income was up 29%, to €706 million, as reported. Non-IFRS operating income decreased 1% to €924 million, as reported, and increased 5% in constant currencies. IFRS operating margin totaled 23.0% compared to 17.6% for the same period in 2025, with lower share-based compensation and related social charges. Non-IFRS operating margin stood at 30.1% in the first half of 2026, stable compared to the same period last year.
- Diluted Earnings per Share: IFRS diluted EPS was €0.44, an increase of 22% as reported. Non-IFRS diluted EPS declined 1% to €0.61, as reported, and increased by 6% in constant currencies.
- Cash Flow from Operations (IFRS): In the first half, cash flow from operations was up 11% in constant currencies to €1.24 billion, compared to €1.15 billion last year. Cash flow from operations was supported by strong cash conversion, and was principally used for dividend payments of €357 million and debt repayment of €217 million.
- Balance Sheet (IFRS): Dassault Systèmes’ net financial position totaled €2.28 billion as of June 30, 2026, an increase of €0.75 billion, compared to €1.53 billion for the year ended December 31, 2025. Cash and cash equivalents totaled €5.66 billion in the first half, with Dassault Systèmes issuing a new bond on June 2026 for €1.00 billion.
Financial Objectives for 2026
Dassault Systèmes’ third quarter and 2026 financial objectives presented below are given on a non-IFRS basis and reflect the principal 2026 currency exchange rate assumptions for the US dollar and Japanese yen as well as the potential impact from additional non-Euro currencies:
These objectives are prepared and communicated only on a non-IFRS basis and are subject to the cautionary statement set forth below.
The 2026 non-IFRS financial objectives set forth above do not take into account the following accounting elements below and are estimated based upon the 2026 principal currency exchange rates above: contract liabilities write-downs was not significant; share-based compensation expenses, including related social charges, estimated at approximately €115 million (these estimates do not include any new stock option or share grants issued after June 30, 2026); amortization of acquired intangibles and of tangibles reevaluation, estimated at approximately €315 million, largely impacted by the acquisition of MEDIDATA; and lease incentives of acquired companies at approximately €1 million.
The above objectives also do not include any impact from other operating income and expenses, net principally comprised of acquisition, integration, IT transformation projects and restructuring expenses, and impairment of goodwill and acquired intangible assets; from one-time items included in financial revenue; from one-time tax effects; and from the income tax effects of these non-IFRS adjustments. Finally, these estimates do not include any new acquisitions or restructuring completed after June 30, 2026.
