Dassault Systemes cuts annual revenue outlook, sees AI boost from 2026

By Olivier Cherfan (Reuters) -French software maker Dassault Systemes cut its full-year revenue growth outlook on Thursday and posted third-quarter results below estimates, pressured by lower-than-anticipated performance in its Life Sciences and CENTRIC PLM divisions. The firm adjusted its annual revenue growth outlook to 4%-6% from 6%-8%, while confirming a 7%-10% increase in diluted earnings per share. The group, which sells its software to automakers, plane makers and industrial companies, reported flat third‑quarter revenue, slightly missing expectations. Quarterly sales reached 1.46 billion euros ($1.7 billion) and operating profit 440 million euros, coming in 3% and 2% below the average forecasts of analysts polled by LSEG. J.P. Morgan said in a note that the results missed expectations, citing softer third-quarter growth and a larger-than-expected cut to outlook. "This is going to require significant unpacking for investors to understand the incremental weakening in Medidata and the nature of the Centric PLM SaaS transition," the broker said. On AI development, Chief Financial Officer Rouven Bergmann told Reuters he doesn't expect a significant impact on revenue in 2025. "But 2026 … I don't want to be too optimistic, but also not pessimistic; everything takes time, but think about a ballpark for probably around 50 million to 100 million next year, where we would definitely start to see things shifting, and then from there very accelerated," Bergmann said. Dassault Systèmes' unit Medidata said it has expanded its partnership with Sanofi to enhance clinical research through its Medidata Patient, Data and Study Experiences platforms, aiming to streamline trials, accelerate the delivery of new therapies, and improve patient outcomes. ($1 = 0.8575 euros) (Reporting by Olivier Cherfan in Gdansk; Editing by Sherry Jacob-Phillips and Mrigank Dhaniwala)

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