Dassault Systemes cuts margin outlook due to tariff volatility, shares fall 9%.

From Yahoo Finance: 2025-04-24 01:03:00

France’s Dassault Systemes lowers its annual operating margin growth forecast due to tariff-related market volatility, with shares falling 9%. The company now expects its 2025 operating margin to rise by 50-70 basis points, down from 70-100 bps. Revenue growth guidance for the second quarter is “soft,” according to Jefferies and Stifel.

Dassault’s results mirror those of Swedish peer Hexagon, which issued a profit warning citing lower growth in North American and Chinese markets. Despite this, Dassault maintains its 2025 outlook of 6%-8% total revenue growth and 7%-10% earnings per share growth. The company is focusing on investing in Gen 7 – an artificial intelligence-enhanced upgrade of its software.

Total revenue for Dassault rose 4% to 1.57 billion euros in the first quarter, with software revenue increasing 5% to 1.43 billion euros. The division’s growth is driven by aerospace and defence, transport and mobility, and high-tech sectors. Dassault forecasts revenue growth of 3% to 7% in the second quarter. Analysts were expecting higher revenue figures, according to Visible Alpha consensus cited by Morgan Stanley.



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