Bentley Systems, Incorporated
BSY · NASDAQ-GS
BSY · NASDAQ-GS
Reports Nov 5, 2026, before the open.
Consensus is $0.29 EPS for Sep 2026 across 4 estimates, ranging $0.28 to $0.30.
Bentley delivered another quarter of double-digit recurring-led growth: revenue rose 12.8% year over year to $410.7 million, while subscriptions increased 13.6% and ARR reached $1.536 billion, up 12% in constant currency. Growth was supported by expansion within existing accounts and new small- and medium-sized accounts. Retention remained steady, with dollar-based net retention at 109%. Sequentially, revenue declined from $424.2 million in Q1 and diluted EPS from $0.30, while operating income fell from $126.3 million to $88.6 million. The supplied consensus data says EPS was $0.28 against $0.28 expected; however, the release and filing report GAAP diluted EPS of $0.25, alongside adjusted EPS of $0.35, so the supplied reported figure does not match the company’s GAAP disclosure.
Against Q2 FY2025, GAAP diluted EPS rose from $0.22 and net income increased to $78.5 million from $70.5 million. Operating margin nevertheless eased to 21.6% from 23.2%, and AOI less Operating SBC margin slipped to 28.3% from 29.3%. The quarter also included a $14.0 million investment remeasurement gain in other income, while net interest expense increased to $9.1 million from $3.5 million. Management emphasized Infrastructure AI progress and said it absorbed the costs of newly launched finance and quote-to-cash platforms within its margin commitment. Q2 free cash flow improved year over year, although first-half free cash flow declined amid working-capital timing.
GAAP operating income increased to $88.6 million from $84.4 million, but revenue grew faster: operating margin fell 1.6 percentage points to 21.6%. AOI less Operating SBC increased to $116.0 million from $106.8 million, with its margin down one point to 28.3%. Management said profitability was in line with expectations and that costs from the new enterprise-wide finance and quote-to-cash platforms were absorbed within its margin commitment. The company also began excluding $1.8 million of acquisition integration costs from this non-GAAP measure in Q2.
Net income was $78.5 million, versus $70.5 million a year ago, and GAAP diluted EPS was $0.25 versus $0.22. Results included $14.0 million of remeasurement gains on non-marketable equity investments in other income; net interest expense rose to $9.1 million from $3.5 million, reflecting higher borrowing costs following repayment of the low-coupon 2026 notes. Adjusted EPS was $0.35, up from $0.32.
Management described AI as an emerging product and monetization opportunity rather than a material reported revenue driver this quarter. Bentley is instrumenting more engineering applications so customers can combine its deterministic modeling, analysis, and simulation engines with AI assistants. The company said account feedback was encouraging and that customers were beginning to apply the capabilities to live projects, with monetization planned in due course. Management identified Resources as the leading growth sector, followed by Public Works / Utilities, including the electric grid.
