Earnings Update: Dassault Systèmes SE (EPA:DSY) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts

Shareholders of Dassault Systèmes SE (EPA:DSY) will be pleased this week, given that the stock price is up 11% to €19.88 following its latest second-quarter results. Dassault Systèmes reported in line with analyst predictions, delivering revenues of €1.6b and statutory earnings per share of €0.22, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, Dassault Systèmes' 20 analysts are now forecasting revenues of €6.36b in 2026. This would be a reasonable 2.5% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be €1.00, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €6.35b and earnings per share (EPS) of €0.98 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Dassault Systèmes

The consensus price target was unchanged at €23.45, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Dassault Systèmes at €33.35 per share, while the most bearish prices it at €17.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 5.1% growth on an annualised basis. That is in line with its 5.8% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.9% annually. So although Dassault Systèmes is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Dassault Systèmes' earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Dassault Systèmes analysts - going out to 2028, and you can see them free on our platform here.

You can also see our analysis of Dassault Systèmes' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.