| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 410.73 | 3.2% | 12.8% |
| Total Income | 410.73 | 3.2% | 12.8% |
| Expenditure | 322.12 | 8.1% | 15.2% |
| PBT | 95.07 | 19.8% | 19.9% |
| Net Profit | 78.57 | 17.6% | 11.5% |
| OPM | 21.57% | 8.19pp | 1.61pp |
| NPM | 19.13% | 3.36pp | 0.23pp |
| EPS | 0.25 | 19.4% | 13.6% |
Bentley Systems Announces Second Quarter 2026 Results
06 Aug 2026 · 6 Aug, 4:41 pm
Summary
Bentley Systems reported strong second quarter 2026 results with total revenues of $410.7 million, up 12.8% year-over-year, driven by a 13.6% increase in subscriptions revenue to $378.6 million. The company's Annualized Recurring Revenues (ARR) reached $1,536.0 million, growing 12% on a constant currency basis. Management expressed confidence in the durability of superior financial returns, citing sustained momentum in ARR, profitability, and free cash flow. The company is also making progress with Infrastructure AI, integrating AI capabilities into its engineering applications.
Key Highlights
- 1
Bentley Systems announced total revenues of $410.7 million for the second quarter of 2026, an increase of 12.8% year-over-year.
- 2
Subscriptions revenues reached $378.6 million in Q2 2026, up 13.6% year-over-year.
- 3
Annualized Recurring Revenues (ARR) stood at $1,536.0 million as of June 30, 2026, with a constant currency growth rate of 12%.
- 4
The company reported a net income per diluted share of $0.25 for the second quarter of 2026, an increase from $0.22 in the prior year period.
- 5
Adjusted net income per diluted share (Adjusted EPS) was $0.35 for Q2 2026, up from $0.32 in the same period last year.
- 6
Cash flows from operating activities were $71.5 million for the second quarter of 2026, compared to $61.1 million in the prior year.
- 7
Free cash flow for Q2 2026 was $63.8 million, an increase from $57.0 million in the corresponding period of 2025.
Management Comments
Greg Bentley
BSY’s hallmark growth dependability, positively exemplified by the quarters of 2026, underscores the boundless prioritization of investment within the world’s owner-operators of physical infrastructure— and our company’s ingrained zeal for hybrid innovation, led foreseeably by successive multi-faceted integration of AI. These factors underlie my confidence in the durability of superior financial returns for holders of BSY shares, characterized by our sustained momentum in growth of ARR, profitability, and most fundamentally, free cash flow (appropriately burdened by operating stock-based compensation).
Nicholas Cumins
We had another strong quarter, reflecting disciplined execution by our team and continued strength in the end markets we serve. Growth was led once again by the Resources sector, followed by Public Works / Utilities, including from the electric grid. We are also making meaningful progress with Infrastructure AI. We are instrumenting more of our engineering applications so that users can combine our trusted, deterministic engines for modeling, analysis, and simulation with the reasoning capabilities of their preferred AI assistants. The feedback from accounts has been encouraging: as they better understand what becomes possible, they are beginning to apply these capabilities on live projects, creating value that we intend to monetize in due course.
Werner Andre
Our second-quarter results reflect consistent high performance across our key financial metrics, positioning us favorably within our full-year financial outlook. We delivered constant-currency ARR growth of 12% and constant-currency subscriptions revenue growth of 13%, with free cash flow having grown 15% on a last-twelve-months basis and profitability in line with our expectations. During the second quarter, we went live with our new enterprise-wide finance and quote-to-cash platforms, the costs of which we absorbed within our margin commitment while laying the foundation for future efficiency and scale. Our disciplined approach to capital allocation is evidenced by quarter-end net debt leverage of 1.9 times and ample credit capacity, notwithstanding a meaningful increase in share repurchases during the first half. Together with our reliable cash generation, and in anticipation of our mid-2027 convertible notes maturity, we maintain the flexibility to fund programmatic acquisitions and to return capital to shareholders through dividends and share repurchases.
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