Bentley Systems Inc (BSY) · Nov 5, 2026 · Earnings
Beat — Adjusted EPS $0.36 vs ~$0.33 consensus; revenue $421.5M vs ~$420.6M
Bentley Systems’ earnings narrowly beat consensus, while 13% ARR growth prompted a higher 2026 constant-currency ARR outlook despite the Cohesive divestiture.
Bentley is a recurring-revenue infrastructure software company building around digital twins, infrastructure AI, and growth in Resources and Public Works & Utilities. Its prior 2026 plan called for 10.5%-12.5% constant-currency ARR growth, with the company’s Q2 update describing ARR growth at 12% and profitability broadly in line with expectations.
The quarter cleared expectations, but only narrowly on the conventional metrics. Revenue rose 12.2% year over year to $421.5 million, just above the roughly $420.6 million consensus, while adjusted EPS of $0.36 exceeded consensus near $0.33. Subscriptions remained the engine, growing to $386.8 million from $344.3 million. 〔0〕
| Metric | Q3 2026 | Q3 2025 | Consensus / prior guide |
|---|---|---|---|
| Revenue (Financial Statements) | $421.5M (+12.2%) | $375.5M | ~$420.6M |
| Adjusted diluted EPS (Adjusted EPS reconciliation) | $0.36 | $0.27 | ~$0.33 |
| Subscriptions revenue (Income Statement) | $386.8M (+12.4%) | $344.3M | |
| ARR growth, constant currency (Management commentary) | 13.0% | 10.5%-12.5% prior outlook | |
| Free cash flow, nine months (Free Cash Flow table) | $353.1M (-8.1%) | $384.0M |
The more important change is the ARR outlook raise. Management lifted its constant-currency ARR growth range, excluding the Cohesive divestiture, to 12.5%-13.5%. That puts the recurring-revenue business above the original full-year range and suggests the Resources and Public Works & Utilities momentum is translating into a stronger underlying run rate, not merely a one-quarter revenue timing benefit. 〔1〕
The headline growth is not entirely clean, but the adjustment is disclosed rather than hidden. Bentley completed the Cohesive divestiture on October 13, 2026, removing a services-oriented business from the continuing story; the raised ARR range explicitly excludes that impact. Eliis adds seismic-interpretation capability to Seequent, while the company says revenues, AOI less Operating SBC, and free cash flow remain within their existing outlook ranges apart from the ARR increase. 〔2〕
Cash generation is the one visible soft spot, though it is less concerning on a trailing basis. Nine-month operating cash flow and free cash flow declined year over year, while higher cash interest and the Cohesive classification affected reported cash movements. However, last-twelve-month operating cash flow increased to $515.9 million from $478.5 million, and management reported net debt leverage of 1.7 times, leaving room for acquisitions, dividends, repurchases, and the 2027 convertible-note maturity.
Bottom line: This was more than a routine beat: recurring growth accelerated enough to push the ARR outlook above its original ceiling. The quarter modestly strengthens Bentley’s execution and infrastructure-AI growth story, even though reported free cash flow was softer year to date and the Cohesive divestiture complicates headline comparisons.
Q4 results and 2027 outlook, expected February 2027
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