Bentley Systems Q3 2026: EPS beats, ARR outlook raised

Bentley Systems reported adjusted earnings per share of $0.36 for the third quarter of 2026, clearing the $0.33 consensus estimate by roughly 9%. Revenue came in at $421.5 million, just ahead of the $420.5 million Wall Street had expected and up 12.2% from the same period a year earlier.

Constant-currency annual recurring revenue grew 13% in the quarter, pushing the ARR balance to $1.58 billion from $1.41 billion a year earlier. Net retention rate ticked up to 110% from 109%, a signal that existing customers are expanding their spending with the company.

Profitability expanded sharply alongside revenue growth. Operating income rose 45% year over year, net income climbed nearly 57%, and the AOI less Operating SBC margin widened to 32.1% from 28.1%. CEO Nicholas Cumins pointed to strength in the Resources end market and continued momentum in Public Works and Utilities as the primary drivers, adding that the engineering firms Bentley serves are benefiting from what he called an unprecedented level of investment in infrastructure for AI.

Management followed the strong quarter by raising its constant-currency ARR growth outlook, excluding the recently divested Cohesive unit, to a range of 12.5% to 13.5%. The updated guidance also reflects the October 29 acquisition of Eliis, a seismic interpretation software firm that is expected to broaden the capabilities of Bentley's Seequent subsurface modeling business. Revenue, profitability, and free cash flow targets were affirmed as on track.

The company flagged several items worth monitoring. Net interest expense rose to $9.9 million from $2.7 million a year ago, and free cash flow dipped 8.3% year over year even as operating income surged. The 2027 convertible notes remain a refinancing obligation on the horizon, though management noted net debt leverage of 1.7 times and an available revolving credit facility give it flexibility to manage that maturity alongside its ongoing acquisition strategy.