Bentley Raises ARR Growth Outlook After 13% Constant-Currency Pace

The Tip Desk · November 5, 2026 · 2 min read

Annualized recurring revenue reached $1.58 billion as of September 30, 2026, and the company lifted its constant-currency ARR growth range to 12.5-13.5% excluding Cohesive.

Bentley Systems, Incorporated (BSY), the infrastructure engineering software company, reported third-quarter revenue of $421.5 million, up 12.2% from a year earlier, or 12.7% in constant currency. Subscriptions revenue was $386.8 million.

The quarter’s defining turn was in annualized recurring revenue. ARR stood at $1,582.8 million as of September 30, 2026, compared with $1,405.2 million a year earlier. Constant-currency ARR growth was 13%, up from 12% as of June 30. Executive Chair Greg Bentley said the progression of the year-over-year ARR growth rate to 13% exceeded the company’s annual outlook range and reflected focused end markets and accounts’ confidence in infrastructure AI.

Chief Executive Nicholas Cumins said the company delivered another quarter of accelerated growth, driven by strength in Resources and continued momentum in Public Works & Utilities. He said engineering firms the company serves are benefiting from investment in infrastructure for AI, and that at the company’s Year in Infrastructure Awards last month, nearly 70% of finalists leveraged AI in their projects.

Last twelve-months recurring-revenue dollar-based net retention was 110%, compared with 109% a year earlier. Operating income margin was 29.1%, versus 22.5% a year earlier. Adjusted operating income less operating stock-based compensation margin was 32.1%. Net income was $0.29 a share, and adjusted net income was $0.36 a share.

Cash flows from operating activities were $109.4 million, and free cash flow was $101.4 million. On a last-twelve-months basis ended September 30, 2026, operating cash flow was $515.9 million and free cash flow was $489.3 million.

Chief Financial Officer Werner Andre said the company’s strong third-quarter results, expected continued momentum, and the programmatic acquisition of Eliis provide confidence in raising the constant-currency ARR year-over-year growth range, excluding the impact from the Cohesive divestiture, to 12.5-13.5%. Revenues excluding Cohesive, AOI less Operating SBC, and free cash flow remain on track to deliver within their respective outlook ranges, he said.

After quarter-end, Bentley completed two capital-allocation transactions. On October 13, 2026, it contributed Cohesive, a business providing IBM Maximo-related implementation and consulting services, to Naviam, an IBM Maximo partner, in exchange for an equity interest in Naviam and warrants for additional equity. On October 29, 2026, it completed the acquisition of Eliis, a seismic interpretation software company, which the company said is expected to complement its Seequent subsurface portfolio.

Andre said that with net debt leverage of 1.7 times and the revolving credit facility, the company has ample financial flexibility to fund programmatic acquisitions, return capital through dividends and opportunistic share repurchases, and repay its 2027 convertible notes at maturity. Cash and cash equivalents were $150.9 million at September 30, 2026.