Dassault Systèmes shares plunged 21% after the French software maker reported a rare decline in software revenues and missed market expectations.
Investor caution around SaaS business models has intensified amid rapid advances in AI-powered automation tools.
The sell-off in technology stocks extended to Indian IT shares, highlighting broader risk-off sentiment across global tech markets.
Shares of French software maker Dassault Systèmes plunged nearly 21% on Wednesday, marking the sharpest decline in the stock since 2002. The Paris-listed shares fell after the company reported its October–December quarterly results, which showed a 5% year-on-year drop in software revenues.
Total revenue came in flat, at a weaker-than-expected €6.24 billion, compared with analysts’ expectations of €6.3 billion. Software revenue growth remained largely unchanged at €5.64 billion.
3 February 2026
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In a statement accompanying the results, Dassault Chief Executive Officer Pascal Daloz said the company “will lead the Industrial AI transformation” through its industrial AI offering, 3D UNIV+RSES.
“This is not a short-term goal. It is a long-term commitment to redefine how industries innovate, operate, and compete,” Daloz said. “In 2025 and 2026, we are focused on disciplined execution, aligning resources around our strategic priorities to deliver measurable, industry-defining impact.”
The sharp sell-off in Dassault shares comes amid heightened investor nervousness around global technology stocks. Technology companies worldwide have been facing mounting pressure since last week, after new artificial intelligence tools from Anthropic triggered a broad sell-off across software-as-a-service (SaaS) and data provider stocks.
Nicknamed the “SaaS apocalypse,” the recent wave of sell-offs reflects growing concerns that rapid advances in AI-powered automation could disrupt traditional software business models. Over the past week, Dassault Systèmes shares have declined more than 4%.
According to a CNBC report citing analysts, the fall in Dassault’s shares is the latest example of this broader reassessment of SaaS valuations. The trigger for the wider IT sell-off came after Anthropic unexpectedly launched a suite of workplace automation tools capable of performing tasks previously handled by manpower or conventional software platforms. The announcement heightened fears that AI could begin replacing parts of the software ecosystem itself.
The global tech rout has also spilled over into emerging markets. Indian equity markets were hit sharply, with IT stocks posting their worst single-day sell-off since the Covid-19 pandemic in March 2020. The software sector shed nearly ₹1.9 lakh crore in market value during the session.
Meanwhile, global institutions including the International Monetary Fund and the Bank of England have cautioned about the risk of a potential market correction amid concerns over a growing AI investment bubble, adding to investor unease across technology stocks.
