Dassault Systemes (DAST.PA) 3Q26 preview: Core industrial momentum intact but await more proof points on Life Sciences; remain Neutral

We update our estimates for FX ahead of Dassault's 3Q26 results on October 28, 2026, where we continue to take a prudent approach and await more proof points of improved growth, especially in Life Sciences. Our FY26 revenue estimates remain unchanged, as we continue to anchor our revenue growth at the mid-point of FY26 guidance at c.4% yoy ex-fx. Given the better core performance in Q2 and in-line 3Q/FY26 guidance, we see the low end of the full-year guide as broadly de-risked. Overall, we continue to believe that Dassault's core Industrial Innovation business is structurally intact, with 3DEXPERIENCE remaining a key differentiator in the PLM market, but await more quarters of improving execution. Looking forward, we expect investor debate to centre on the implied growth trajectory in 2H26, ARR dynamics, recovery in Life Sciences growth, the strategic rationale around the acquisition of ArisGlobal, and the emerging AI product roadmap and monetisation opportunity ahead of the November 1