Bentley Systems Q2 2026 Earnings Overview
Bentley Systems Inc. (NASDAQ:BSY) posted second‑quarter 2026 results that beat earnings expectations but fell short of revenue forecasts, prompting a 2.4 % decline in its pre‑market share price on Thursday.
The company reported earnings per diluted share of $0.35, surpassing the consensus analyst estimate of $0.32. Revenue for the quarter was $410.7 million, slightly below the consensus estimate of $412.15 million.
Total revenue grew 12.8 % year‑over‑year (12.2 % on a constant‑currency basis). Subscription revenue, the primary driver, increased 13.6 % YoY to $378.6 million (13.0 % constant‑currency).
Annualized Recurring Revenues (ARR) stood at $1,536.0 million as of 30 June 2026, up from $1,379.2 million a year earlier, reflecting a 12 % constant‑currency growth rate. The twelve‑month dollar‑based net retention rate remained at 109 %, unchanged from the prior period.
Operating income margin contracted to 21.6 % from 23.2 % in the comparable quarter last year. Net income per diluted share rose to $0.25 from $0.22 year‑over‑year.
Cash flow from operations improved to $71.5 million, compared with $61.1 million in the same quarter last year, and free cash flow increased to $63.8 million from $57.0 million.
For the six‑month period ended 30 June 2026, total revenues were $834.9 million, up 13.6 % YoY (12.1 % constant‑currency). Subscription revenues for the six months were $771.1 million, up 14.1 % YoY (12.6 % constant‑currency).
The market reaction was a 2.4 % drop in BSY shares in pre‑market trading despite the earnings beat.