Bentley Systems, Incorporated (NASDAQ:BSY) reported third-quarter 2026 adjusted earnings of $0.36 per share on Thursday, exceeding analysts’ expectations of $0.33, while revenue increased 12.2% year over year to $421.5 million, above the consensus estimate of $420.6 million.
The infrastructure engineering software company’s shares rose 0.85% in premarket trading following the announcement.
Revenue growth reached 12.7% on a constant-currency basis, supported by subscription sales and demand across the company’s infrastructure software markets.
Subscription Revenue and Recurring Revenue Increase
Subscription revenue rose 12.4% year over year to $386.8 million.
Annualised recurring revenue (ARR) reached $1.58 billion as of September 30, 2026, compared with $1.41 billion a year earlier, representing constant-currency growth of 13%.
The company’s trailing 12-month dollar-based net retention rate increased to 110% from 109% in the corresponding period last year.
“We delivered another quarter of accelerated growth, driven by strength in Resources and continued momentum in Public Works & Utilities,” said CEO Nicholas Cumins. “The engineering firms we serve are benefiting from an unprecedented level of investment in infrastructure for AI.”
Operating Margins Expand
Bentley Systems reported an operating income margin of 29.1%, compared with 22.5% in the prior-year quarter.
Its adjusted operating income margin, excluding operating stock-based compensation expenses, increased to 32.1% from 28.1%.
The company also raised its full-year constant-currency ARR growth guidance, excluding the impact of the Cohesive divestiture, to 12.5%–13.5%.
Chief Financial Officer Werner Andre said revenue excluding Cohesive, adjusted operating income less operating stock-based compensation and free cash flow remained on track to meet their respective annual guidance ranges.
Portfolio Changes Completed in October
Bentley completed the divestiture of Cohesive to Naviam on October 13, 2026.
The company also acquired Eliis, a provider of seismic interpretation software, on October 29, 2026.
The transactions accompany Bentley’s updated recurring revenue outlook, with management maintaining its existing expectations for other key financial measures.