France's Dassault Systemes delays earnings target timeline until 2029

By Anna Peverieri

(Reuters) -French software company Dassault Systemes extended the target timeframe of its medium-term forecast by one year on Friday and cut its revenue growth outlook for the same period, as weak auto demand and tariff-driven uncertainty weighs on its business.

The group, which sells its software to automakers, plane makers and industrial companies, had aimed to double its non-IFRS diluted earnings per share (EPS) to between 2.20 euros and 2.40 euros under its 2023–2028 strategy, a target it now expects to reach in 2029.

Dassault Systemes also trimmed its medium-term revenue outlook at its capital markets day event, now targeting compound annual growth rate (CAGR) of 7% to 8% between 2024 and 2029. It had previously forecast double-digit percentage growth of 10% for the 2023-2028 period.

Hit by a prolonged slowdown in the global auto industry, Dassault Systemes lowered its 2025 operating margin growth forecast in April, citing market volatility related to U.S. President Donald Trump's tariffs. It had also cut 2024 forecasts twice in the second half of last year.

The repeated outlook cuts have fuelled investor concerns over the company's ability to hit its medium and longer term targets, including those set for 2028.

A trader said the target delay looked "pretty back-end loaded", as Dassault Systemes' shares slid 1.7% as of 1530 GMT.

(Reporting by Anna Peverieri in Gdansk, editing by Milla Nissi-Prussak and Hugh Lawson)

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