Bentley Systems Reports Q3 2026 Results and Raises ARR Growth Outlook

Executive Summary

Bentley Systems, Incorporated (NASDAQ: BSY) filed a Form 8-K under Item 2.02 detailing its financial results for the third quarter and nine months ended September 30, 2026. The company demonstrated sustained top-line acceleration driven by infrastructure engineering demand and AI adoption, while raising its full-year constant currency ARR guidance.

Key Financial Highlights (Q3 2026)

• Revenue: Total revenues reached $421.5 million, an increase of 12.2% year-over-year (12.7% on a constant currency basis). Subscriptions revenue represented 91.8% of the total at $386.8 million (+12.4% YoY).
• Annualized Recurring Revenue (ARR): Ended at $1,582.8 million as of September 30, 2026, compared to $1,405.2 million as of September 30, 2025, delivering a 13% constant currency ARR growth rate.
• Net Retention: LTM recurring revenues dollar-based net retention rate held strong at 110%, up from 109% in the prior year period.
• Profitability:
  • GAAP Operating Income margin expanded significantly to 29.1%, up 660 bps from 22.5% in Q3 2025.
  • Adjusted Operating Income less Operating Stock-Based Compensation ("AOI less Operating SBC") margin expanded to 32.1% from 28.1%.
  • GAAP Diluted EPS was $0.29 versus $0.18 in Q3 2025; Adjusted EPS rose to $0.36 from $0.27.
• Cash Flow: Cash flow from operations was $109.4 million, and free cash flow was $101.4 million for the quarter ($489.3 million on an LTM basis).

Strategic Portfolio Actions

• Divestiture of Cohesive: Completed October 13, 2026, contributing Cohesive (IBM Maximo implementation consulting) to Naviam in exchange for equity ownership and warrants.
• Acquisition of Eliis: Completed October 29, 2026, acquiring the seismic interpretation software vendor to expand Seequent's subsurface modeling portfolio.

Guidance & Balance Sheet Outlook

• Management raised its constant currency ARR year-over-year growth range (excluding the Cohesive divestiture) to 12.5%–13.5%.
• Net debt leverage stands at 1.7x, supporting liquidity to address programmatic acquisitions, capital returns, and the maturity of 2027 convertible notes.