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

Bentley Systems (NASDAQ:BSY) issued its quarterly earnings results on Thursday. The company reported $0.36 EPS for the quarter, beating 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 during the quarter, compared to the consensus estimate of $420.69 million. During the same quarter in the prior year, the firm earned $0.27 EPS. The firm’s quarterly revenue 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 Stock Down 0.6%

Shares of NASDAQ:BSY traded down $0.29 during midday trading on Friday, hitting $44.65. 5,012,172 shares of the stock were exchanged, compared to its average volume of 2,413,458. The company has a debt-to-equity ratio of 1.01, a quick ratio of 0.59 and a current ratio of 0.59. Bentley Systems has a 52-week low of $28.08 and a 52-week high of $48.17. The business’s fifty day simple moving average is $35.61 and its two-hundred day simple moving average is $34.51. The company has a market capitalization of $12.97 billion, a PE ratio of 43.77, a P/E/G ratio of 2.64 and a beta of 0.98.

Bentley Systems Announces Dividend

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

Insider Transactions at Bentley Systems

In other Bentley Systems news, Director Raymond Bentley sold 344,203 shares of the company’s stock in a transaction dated Friday, October 30th. The stock was sold at an average price of $40.24, for a total value of $13,850,728.72. Following the transaction, the director directly owned 14,316,404 shares of the company’s stock, valued at $576,092,096.96. This represents a 2.35% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 500,000 shares of company stock worth $20,089,565 over the last ninety days. 20.27% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

BSY has been the topic of several recent analyst reports. Cantor Fitzgerald boosted their target price on shares of Bentley Systems from $42.00 to $55.00 and gave the company an “overweight” rating in a research note on Friday. BMO Capital Markets lifted their price target on Bentley Systems from $41.00 to $43.00 and gave the company an “outperform” rating in a report on Friday, August 7th. Royal Bank Of Canada upped their price target on Bentley Systems from $48.00 to $52.00 and gave the company an “outperform” rating in a research report on Friday. Oppenheimer increased their price objective on Bentley Systems from $43.00 to $52.00 and gave the stock an “outperform” rating in a research note on Friday. Finally, Rosenblatt Securities raised their price objective on Bentley Systems from $50.00 to $53.00 and gave the stock a “buy” rating in a research report on Friday. Nine research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price 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

Bentley Systems Company Profile

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.