Dassault Systèmes, a software developer, has projected revenue growth of 6% to 8% for 2025, an increase from 5% in the previous year, citing its strong competitive position following improved software revenue in the last quarter of 2024. The French company, which provides software solutions to the automotive, aerospace, and industrial sectors, anticipates diluted earnings per share between 1.36 euros and 1.39 euros in 2025, up from 1.20 euros last year. It also expects an operating margin of 32.6% to 32.9%, compared to a margin of 31.9% in 2024.
Recently, SAP, Europe’s largest software company, raised its 2025 operating profit forecast, expecting a boost in cloud revenue growth. Dassault faced challenges due to a prolonged slowdown in the global automotive sector, leading to two downward revisions of its 2024 outlook in the latter half of the year. However, its software revenue, which encompasses license and subscription sales, rose by 9% to 1.60 billion euros ($1.65 billion) in the fourth quarter, driven by demand from the aerospace and defense industries.
The sales growth of Dassault’s flagship software platform, 3DEXPERIENCE, which provides 3D modeling, data management, and project management tools, increased by 22% in the quarter, compared to a 21% rise in the same period in 2023 and a 10% decline in the third quarter. In a separate announcement, Dassault revealed that Volkswagen has selected the 3DEXPERIENCE platform to enhance its engineering and manufacturing processes as part of a long-term partnership, although financial details of the agreement were not disclosed.
Revenue from the Medidata unit, which focuses on analyzing patient data for clinical trials, grew by 1% in the fourth quarter. Analysts from Stifel noted that the quarterly results were robust, especially given the challenging macroeconomic environment, while describing the 2025 guidance as “understandably conservative.” Following the announcement, Dassault’s shares initially rose by 2.5% at market open but later stabilized to trade flat by 0840 GMT.
