Dassault Cut 2025 ForecastDassault Systèmes Cuts 2025 Forecast Despite Maintaining 30% Operating Margin and Rising EPS
By Ion Jauregui – Analyst at ActivTrades
French group Dassault Systèmes (TICKER AT: DSY), a global leader in 3D design and engineering software, reported on Thursday results that demonstrate operational strength but a more cautious outlook for growth in the coming year.
In the third quarter, the company posted a 5% increase in total revenue to €1.46 billion, supported by solid momentum in its recurring business, which rose 9% and now accounts for 86% of total software sales. The non-IFRS diluted earnings per share grew 10% to €0.29, while the operating margin improved slightly to 30.1%, driven by efficiency measures implemented during the year.
However, the Vélizy-Villacoublay-based firm lowered its revenue growth forecast for 2025 to a range of 4%–6%, down from the previous 6%–8%, though it maintained its EPS growth target of 7%–10%.
By business line, the Industrial Innovation division remained the group’s main growth driver with a 9% increase, fueled by strong performance from CATIA, DELMIA and ENOVIA, while Life Sciences fell 3% due to a slower start of projects at MEDIDATA. Regionally, the Americas grew 7%, and both Europe and Asia advanced 4%, with notable strength in India and South Korea.
For the fourth quarter, Dassault Systèmes expects revenue between €1.7 and €1.82 billion and a diluted EPS of €0.41 to €0.45, supported by a solid cash position of €3.91 billion.
Technical Analysis – Dassault Systèmes (TICKER AT: DSY)
On the daily chart, the stock has moved since March from its highs at €40.85 to its September lows near €26.25. Following this decline — returning to May 2020 price levels — the stock has since rebounded to close yesterday at €30.12. This level represents a potential boundary of the long-term downward channel, where prices could move toward the Point of Control (POC) around €32.00.
Currently, the 50-day moving average has crossed above the 100-day, suggesting that the recovery trend is approaching the 200-day moving average, a potential signal of a shift from bearish to bullish momentum.
The RSI stands in overbought territory at 66.26%, and the MACD remains clearly positive — both indicators pointing to upward momentum.
According to the ActivTrades Europe Market Pulse indicator, the market environment is currently risk neutral, suggesting that this move reflects the company’s internal strength rather than broader market cycles.
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