Bentley Systems (NASDAQ:BSY) Posts Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Bentley Systems (NASDAQ:BSY) posted its quarterly earnings results on Thursday. The company reported $0.36 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.33 by $0.03, FiscalAI reports. Bentley Systems had a net margin of 18.10% and a return on equity of 28.43%. The business had revenue of $421.51 million for the quarter, compared to analyst estimates of $420.69 million. During the same quarter last year, the business posted $0.27 EPS. The firm’s revenue for the quarter was up 12.2% on a year-over-year basis.

Here are the key takeaways from Bentley Systems’ conference call:

• Growth accelerated: Q3 ARR growth reached 13%, above the company’s prior outlook range, while net revenue retention hit a record 110%. Revenue rose 12.2% year over year to $422 million, with subscription revenue up 12.4%.
• Bentley raised its 2026 ARR growth outlook, excluding Cohesive’s divestiture, to 12.5%–13.5% from 10.5%–12.5%. The Eliis acquisition is expected to add approximately 100 basis points to ARR growth and expand Seequent’s subsurface capabilities.
• The Cohesive divestiture is expected to reduce Q4 revenue by about $12 million and weigh on services revenue through 2027. Bentley said the remaining business will have a more recurring revenue mix, with subscriptions expected to represent about 95% of total revenue, up from 92%.
• Asset analytics contributed meaningfully to ARR growth, supported by enterprise expansions in areas including tower inspection and transportation monitoring. Management said AI monetization is already occurring in asset analytics, while AI-enabled design monetization is expected to begin in 2027 but is not expected to be a material growth driver that year.
• Adjusted operating income less operating stock-based compensation margin improved to 32.1% from 28.1% a year earlier, and the company maintained its full-year profitability and free cash flow outlook. Year-to-date free cash flow was down 8%, which Bentley attributed to collection timing and earlier investment.

Bentley Systems Trading Down 0.6%

NASDAQ:BSY traded down $0.29 during mid-day trading on Friday, hitting $44.65. 5,012,172 shares of the company’s stock were exchanged, compared to its average volume of 2,413,458. The company has a 50 day simple moving average of $35.61 and a 200-day simple moving average of $34.51. The company has a current ratio of 0.59, a quick ratio of 0.59 and a debt-to-equity ratio of 1.01. Bentley Systems has a fifty-two week low of $28.08 and a fifty-two week high of $48.17. The firm has a market capitalization of $12.97 billion, a P/E ratio of 43.77, a PEG ratio of 2.64 and a beta of 0.98.

Bentley Systems Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 29th. Investors of record on Tuesday, September 22nd were issued a $0.07 dividend. This represents a $0.28 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date was Tuesday, September 22nd. Bentley Systems’s dividend payout ratio (DPR) is 30.77%.

Insiders Place Their Bets

In other Bentley Systems news, Director Raymond Bentley sold 344,203 shares of the company’s stock in a transaction that occurred on Friday, October 30th. The shares were sold at an average price of $40.24, for a total value of $13,850,728.72. Following the completion of the transaction, the director directly owned 14,316,404 shares in the company, valued at approximately $576,092,096.96. This represents a 2.35% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 500,000 shares of company stock worth $20,089,565. Insiders own 20.27% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on the company. Weiss Ratings raised Bentley Systems from a “hold (c-)” rating to a “hold (c)” rating in a report on Monday, October 19th. BMO Capital Markets boosted their price target on Bentley Systems from $41.00 to $43.00 and gave the stock an “outperform” rating in a report on Friday, August 7th. Cantor Fitzgerald upped their price objective on Bentley Systems from $42.00 to $55.00 and gave the stock an “overweight” rating in a research report on Friday. Oppenheimer upped their price objective on Bentley Systems from $43.00 to $52.00 and gave the stock an “outperform” rating in a research report on Friday. Finally, Rosenblatt Securities raised their price objective on Bentley Systems from $50.00 to $53.00 and gave the company a “buy” rating in a research note on Friday. Nine equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $46.67.

More Bentley Systems News

Here are the key news stories impacting Bentley Systems this week:

• Positive Sentiment: Q3 results topped expectations and growth remained strong. Bentley reported adjusted earnings of $0.36 per share versus estimates of about $0.33–$0.34, while revenue of $421.5 million edged past forecasts and rose 12.2% year over year. The company also raised its annual recurring revenue outlook, supporting expectations for continued growth. Bentley Systems reports revenue growth and raises ARR outlook
• Positive Sentiment: Several analysts raised price targets. Oppenheimer lifted its target to $52 and kept an Outperform rating; RBC raised its target to $52 with an Outperform rating; Cantor Fitzgerald set a $55 target and Overweight rating; and Rosenblatt raised its target to $53 with a Buy rating. These revisions signal improved analyst expectations, though targets are not guarantees. Oppenheimer price target update RBC price target update Cantor Fitzgerald price target update Rosenblatt price target update
• Neutral Sentiment: UBS raised its target but stayed Neutral. UBS moved its target to $50 from $40, while maintaining a Neutral rating—an upward valuation revision tempered by a lack of stronger conviction. UBS price target update
• Negative Sentiment: An insider sale may weigh on sentiment. Raymond Bentley reportedly sold 344,203 shares. The report does not establish the reason for the sale, so it is not necessarily a signal about the company’s outlook. Insider share sale report

About Bentley Systems

Bentley Systems, Incorporated is a software company that develops solutions for the design, construction, and operation of infrastructure. Its customers include engineers, architects, geospatial professionals, construction firms, and infrastructure owner-operators in sectors such as transportation, water, utilities, industrial facilities, and buildings.

The company’s product portfolio includes MicroStation for infrastructure design, ProjectWise for project collaboration, AssetWise for asset performance and operations, and SYNCHRO for construction management.