April 24 – French software maker Dassault Systèmes (DAST.PA) has revised its annual operating margin growth forecast downward, pointing to a more unpredictable market environment driven by the introduction of new tariffs. The company, which provides software solutions to the automotive, aerospace, and industrial sectors, now anticipates a 50-70 basis point increase in its 2025 operating margin—down from its earlier projection of 70-100 basis points.

“These new tariffs have added to market volatility, which may result in extended decision-making timelines,” said CFO Rouven Bergmann. Dassault’s update mirrors that of Swedish competitor Hexagon (HEXAb.ST), which issued a profit warning earlier in April, citing slower growth in North America and China due to economic uncertainty. Dassault maintained its guidance for total revenue growth of 6%-8% and earnings per share growth of 7%-10%.

The company said the revised margin outlook will allow more flexibility for long-term investments, especially in its next-generation AI-powered platform, 3DEXPERIENCE Gen 7. Bergmann emphasized this is key to managing the unexpectedly turbulent market. In Q1, Dassault’s total revenue rose 4% to 1.57 billion euros ($1.78 billion), slightly below analysts’ expectations of 1.60 billion euros, as weaker services revenue weighed on results. Software revenue increased 5% year-over-year to 1.43 billion euros, closely aligning with the forecast of 1.44 billion euros. Growth was driven by demand from the aerospace, transportation, and high-tech sectors.

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