Bentley Systems’ results for Q2 drew a modestly negative market response, despite the company meeting Wall Street’s revenue expectations and delivering a non-GAAP profit above consensus. Management attributed the quarter’s performance to ongoing strong demand in public works and utilities and robust growth in the resources sector, especially mining. CEO Nicholas Cumins highlighted that engineering productivity and the adoption of AI-driven workflows are becoming central to customer needs as infrastructure projects face persistent labor constraints. The company also noted especially healthy project backlogs for small and mid-sized businesses and strong renewals in its Enterprise 365 commercial program.
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Bentley Systems (BSY) Q2 CY2026 Highlights:
- Revenue: $410.7 million vs analyst estimates of $411.6 million (12.8% year-on-year growth, in line)
- Adjusted EPS: $0.35 vs analyst estimates of $0.32 (9.8% beat)
- Adjusted EBITDA: $143.4 million vs analyst estimates of $141.5 million (34.9% margin, 1.3% beat)
- Operating Margin: 21.6%, down from 23.2% in the same quarter last year
- Net Revenue Retention Rate: 109%, in line with the previous quarter
- Annual Recurring Revenue: $1.54 billion vs analyst estimates of $1.53 billion (11.4% year-on-year growth, in line)
- Billings: $406.9 million at quarter end, up 10.5% year on year
- Market Capitalization: $11.08 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Bentley Systems’s Q2 Earnings Call
- Matt Hedberg (RBC Capital Markets) asked about sustaining ARR growth into the second half; CEO Nicholas Cumins attributed momentum to resources and public works, but noted that reaching the upper range would require continued sector strength and possibly acquisitions.
- Joseph Vruwink (Robert W. Baird) questioned the potential for higher software spend per infrastructure asset; Executive Chair Gregory Bentley explained that AI and asset analytics will unlock further value, with room for significant spend increases over time.
- Jason Celino (KeyBanc) requested updates on PLS growth and the effect of permitting reform; Cumins confirmed PLS outperformance in both U.S. and international markets, and expects permitting reform to accelerate growth when enacted.
- Sitikantha Panigrahi (Mizuho) probed the timeline and approach to AI monetization; Cumins clarified that the focus remains on adoption and validation, with monetization planned for next year and a flexible approach to integrating third-party AI systems.
- Jay Vleeschhouwer (Griffin Securities) asked about R&D priorities and expense trends; Cumins and Andre outlined increased investment in AI for engineering applications, infrastructure cloud, and supporting functions, emphasizing the need to address AI market complexity and accelerate adoption.
Catalysts in Upcoming Quarters
In coming quarters, the StockStory team will watch (1) progress on enterprise and SMB adoption of AI-enabled engineering applications, (2) the pace and scale of asset analytics deals as Bentley moves toward monetization, and (3) signs of sustained momentum in core sectors—especially resources and electric grid. Execution on R&D investments and clarity on AI commercial models will also be key milestones.
Bentley Systems currently trades at $36.13, in line with $36.04 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free).
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