Investing.com -- Dassault Systemes SE (EPA:DAST) raised its full-year financial outlook on Wednesday as improving revenue growth and contributions from its recent life-sciences acquisition offered fresh signs that a prolonged slowdown at the French software maker may be easing.
Revenue rose 5% year on year to €1.55 billion in the third quarter, while operating earnings increased 10% to €490 million. The operating margin improved to 31.6% from 30.1% a year earlier.
The company now expects full-year revenue growth of 4% to 5%, compared with its previous forecast of 3% to 5%. It also raised its operating margin target to 32.5% to 32.7%, from 32.2% to 32.6%, marking its first increase in annual growth guidance in two years.
Revenue growth has accelerated through 2026, rising from 3% in the first quarter to 4% in the second quarter and 5% in the July-September period. Chief Financial Officer Rouven Bergmann told analysts that the improving trajectory reflected strengthening momentum across the business.
The company also expects its $1.8 billion acquisition of life-sciences software provider ArisGlobal, completed in September, to contribute two percentage points to fourth-quarter revenue growth.
Dassault Systèmes forecasts revenue growth of 5% to 8% in the final quarter, while ArisGlobal is expected to deliver double-digit growth in 2027.
The acquisition expands Dassault Systèmes' position in life-sciences software, where digital platforms help pharmaceutical companies manage drug development and related processes. The purchase adds to the group's efforts to broaden its business beyond traditional industrial design and engineering software.
The improved outlook comes after several years of slower growth for the company, whose software is used to design, simulate and manage products and industrial processes.
The latest guidance increase suggests that demand may be recovering after the downturn that began in 2023, although sustained growth will depend on continued momentum in its core software operations.
Original Article
Dassault Systèmes raises 2026 outlook as revenue growth rebound gathers pace
