Dassault Systemes SA (DASTY) AI Stock Analysis

Dassault Systemes SA

(Other OTC:DASTY)

Select Model

Rating:80Outperform

Price Target:$30.00▲(5.47% Upside)

Action:reiterated

Date:10/29/26

DASTY scores well primarily on strong financial performance (high and improving profitability, excellent cash conversion, and de-leveraging) and a positive earnings update with raised guidance and strong cash generation. Technicals are supportive with price above key moving averages, though short-term momentum looks somewhat stretched. Valuation is reasonable but not cheap relative to muted revenue growth, which caps the overall score.

Positive Factors

Recurring revenue expansionGrowing ARR and subscriptions strengthen revenue visibility and make the business less dependent on one-time license sales. The rising subscription mix can deepen customer relationships, support renewals, and create a more durable base for cross-selling additional platform roles and applications.

Negative Factors

Slowing overall revenue growthThe company remains profitable, but subdued top-line growth limits operating leverage and reduces the pace at which its earnings base can expand. Sustained low growth would place greater importance on execution, retention, and margin discipline to maintain financial performance.

Dassault Systemes SA (DASTY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $37.52B
Dividend Yield: 1.11%
Average Volume (3M): 99.47K
Price to Earnings (P/E): 25.4
Beta (1Y): 0.60
Revenue Growth: 5.16%
EPS Growth: 20.29%
Country: US
Employees: 24,997
Sector: Technology
Sector Strength: 61
Industry: Software - Application

Dassault Systemes SA Business Overview & Revenue Model

Company Description

Dassault Systèmes SE is a leading global provider of sophisticated software solutions and related services. The company's diverse product portfolio addresses a wide range of industry requirements, including SOLIDWORKS for integrated 3D design, electr...

How the Company Makes Money

Dassault Systèmes primarily makes money by licensing and subscribing its enterprise software and related cloud services, and by selling maintenance/support and professional services. 1) Software subscriptions and licenses (core revenue driver) - Dass...

Dassault Systemes SA Earnings Call Summary

Earnings Call Date:Oct 27, 2026(Q3-2026)|% Change Since:3.37%|Next Earnings Date:Feb 02, 2027

Earnings Call SentimentPositive

The call was strongly positive, supported by Q3 revenue and EPS growth, margin expansion, strong cash generation, improving recurring-revenue momentum, and raised full-year guidance. Management also reported progress in 3DEXPERIENCE, cloud, China, AI, and Life Sciences. The main challenges were the 3% Americas decline, flat MEDIDATA revenue, softer Central and Southern Europe performance, and remaining work to improve partner-channel execution, integrate ArisGlobal, and scale AI adoption.

Positive Updates

Strong Q3 Execution

Third-quarter total revenue grew 5%, software revenue increased 5%, 3DEXPERIENCE revenue rose 25%, cloud revenue grew 14%, and EPS reached EUR 0.32, up 8% ex-FX.

Negative Updates

Americas Revenue Decline

The Americas declined 3% because of a tough year-over-year comparison. Management said the region was more back-end loaded toward Q4, although the transactions were identified and built into the plan.

Company Guidance

For the full year, Dassault Systèmes expects revenue growth of 4% to 5%, versus 3% to 5% previously, with revenue of EUR 6.399 billion to EUR 6.459 billion, operating margin of 32.5% to 32.7% versus 32.2% to 32.6% prior, and EPS growth of 6% to 7% versus 3% to 6% previously, or EPS of EUR 1.35 to EUR 1.36. For the fourth quarter, it expects revenue growth of 5% to 8%, including a 2-point contribution from ArisGlobal, operating margin of 37.2% to 37.8%, and EPS of EUR 0.42 to EUR 0.43, up 3% to 7% ex-FX, based on $1.14 per euro, JPY 170 per euro, and a tax rate of 17.4%; MEDIDATA is expected to return to growth in Q4, with an indication of around 2 plus.

Dassault Systemes SA Financial Statement Overview

Summary

High-quality software fundamentals: very strong gross margins (~83–84%), improving net margin (~16% in 2021 to ~21% TTM), and healthy EBIT/EBITDA margins. Free cash flow conversion is excellent (~0.92x of net income TTM) with strong recent acceleration, while leverage has improved (debt-to-equity down to ~0.36 TTM). The main constraint is the clear slowdown in revenue growth (near-flat in 2025 and only modestly higher in TTM).

Income Statement

83Very Positive

Balance Sheet

78Positive

Cash Flow

86Very Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	6.30B	6.24B	6.21B	5.95B	5.67B	4.86B
Gross Profit	5.30B	5.22B	5.20B	4.98B	4.75B	4.07B
EBITDA	2.07B	2.05B	1.92B	1.81B	1.94B	1.61B
Net Income	1.34B	1.20B	1.20B	1.05B	931.50M	773.70M
Balance Sheet
Total Assets	16.26B	15.06B	15.55B	14.62B	14.26B	14.22B
Cash, Cash Equivalents and Short-Term Investments	3.81B	4.13B	3.95B	3.57B	2.77B	2.98B
Total Debt	2.77B	3.17B	3.06B	3.60B	3.58B	4.47B
Total Liabilities	6.58B	6.26B	6.47B	6.78B	6.94B	8.01B
Stockholders Equity	9.67B	8.79B	9.07B	7.83B	7.31B	6.20B
Cash Flow
Free Cash Flow	1.72B	1.47B	1.47B	1.42B	1.39B	1.51B
Operating Cash Flow	1.86B	1.63B	1.66B	1.57B	1.53B	1.61B
Investing Cash Flow	-1.72B	-404.30M	-191.70M	-161.60M	-213.90M	-160.40M
Financing Cash Flow	-322.10M	-789.40M	-1.21B	-536.70M	-1.59B	-711.90M

Dassault Systemes SA Technical Analysis

Technical Analysis SentimentPositive

Last Price28.44

Price Trends

50DMA25.21Positive

100DMA23.73Positive

200DMA23.17Positive

Market Momentum

MACD0.98Negative

RSI73.11Negative

STOCH100.14Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DASTY, the sentiment is Positive. The current price of 28.44 is above the 20-day moving average (MA) of 26.15, above the 50-day MA of 25.21, and above the 200-day MA of 23.17, indicating a bullish trend. The MACD of 0.98 indicates Negative momentum. The RSI at 73.11 is Negative, neither overbought nor oversold. The STOCH value of 100.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DASTY.

Dassault Systemes SA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DASTY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PTC	87Outperform	$21.24B	18.72	32.64%	―	19.50%	143.45%
DASTY	80Outperform	$37.82B	25.37	14.48%	1.11%	5.16%	20.29%
BSY	73Outperform	$12.36B	46.09	24.10%	0.66%	12.85%	14.73%
ADSK	70Outperform	$52.17B	33.19	52.50%	―	18.70%	59.41%
U	66Neutral	$16.59B	-28.58	-18.85%	―	13.98%	-27.86%
PCOR	64Neutral	$9.33B	-240.10	-3.13%	―	15.41%	73.03%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

DASTY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DASTY	Dassault Systemes S.A. (ADR)	28.69	1.16	4.21%
ADSK	Autodesk Inc	257.91	-43.05	-14.30%
PTC	PTC Inc.	194.31	4.34	2.28%
U	Unity Software, Inc.	38.87	-3.49	-8.24%
BSY	Bentley Systems, Class B	42.40	-5.71	-11.88%
PCOR	Procore Technologies Inc	62.57	-8.97	-12.54%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 29, 2026

Dassault Systemes SA AI Stock Analysis