Bentley Systems, Class B (BSY)
NASDAQ:BSY
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Bentley Systems
(NASDAQ:BSY)
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Rating:68Neutral
Price Target:
$36.00
▲(2.62% Upside)
Action:Reiterated
Date:05/09/26
BSY’s score is driven mainly by strong profitability and free-cash-flow generation, reinforced by a constructive earnings call with reiterated 2026 guidance and durable recurring-revenue/retention metrics. Offsetting these strengths, the technical setup is weak with the stock below all key moving averages and negative MACD, and valuation remains on the higher side given the ~28.8 P/E and modest dividend yield.
Positive Factors
Strong cash generation & margins
High software gross margins and near-parallel free cash flow translate to durable earnings quality. Consistent FCF (~$492M TTM) supports ongoing R&D, dividends, buybacks and selective M&A without relying on volatile external financing, bolstering long-term financial resilience.
Negative Factors
Decelerating revenue growth
Revenue growth slowing to mid-single digits from prior double-digit rates reduces operating leverage and makes it harder to deliver margin expansion and cash growth. Sustained deceleration would require material new product adoption, market expansion, or M&A to restore prior growth trajectories.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & margins
High software gross margins and near-parallel free cash flow translate to durable earnings quality. Consistent FCF (~$492M TTM) supports ongoing R&D, dividends, buybacks and selective M&A without relying on volatile external financing, bolstering long-term financial resilience.
Read all positive factors
Bentley Systems Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Bentley Systems is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Bentley Systems is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
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The Fly
The FlyBentley Systems (BSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.07B
Dividend Yield0.72%
Average Volume (3M)2.36M
Price to Earnings (P/E)28.8
Beta (1Y)0.75
Revenue Growth12.23%
EPS Growth10.63%
CountryUS
Employees5,500
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.89
Shares Outstanding292,281,560
10 Day Avg. Volume3,085,679
30 Day Avg. Volume2,359,845
Financial Highlights & Ratios
PEG Ratio2.49
Price to Book (P/B)10.10
Price to Sales (P/S)8.00
P/FCF Ratio23.09
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue6.91
Enterprise Value/Gross Profit8.47
Enterprise Value/Ebitda22.09
Forecast
1Y Price Target
$45.00Price Target Upside28.28% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)1.38
Revenue Forecast (FY)$1.70B
Bentley Systems Business Overview & Revenue Model
Company Description
Bentley Systems, Incorporated, together with its subsidiaries, provides infrastructure engineering software solutions in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. The company offers open modeling and open simulation appl...
How the Company Makes Money
Bentley primarily makes money by licensing and subscribing its infrastructure engineering software to enterprise and professional users. Its key revenue stream is recurring software subscription revenue (including term subscriptions and enterprise...
Bentley Systems Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial picture: solid revenue and ARR growth, high recurring revenue mix, strong retention metrics, healthy profitability (AOI less operating SBC margin 33.2%), robust free cash flow and active capital returns, and clear progress on AI and product instrumentation (STAAD MCP server, Asset Analytics scale). Notable growth in the resources/Seequent business and strong new-logo momentum (Virtuoso) further support upside. Risks highlighted include limited access to Chinese accounts, persistent FX headwinds, a decline in perpetual license revenue, early-stage AI monetization and potential margin/compute pressures, and churn math around the large SMB base. Management expects continued investment in the first half and has contingent drivers required to reach the higher end of guidance. Overall, positives outweigh the challenges, but several execution and macro factors warrant monitoring.Positive Updates
Strong Revenue and ARR Growth
Q1 total revenues of $424 million, up 14.5% year-over-year (11.9% constant currency). ARR at quarter end $1.495 billion, with year-over-year ARR growth of 11.5% (constant currency) and sequential quarterly ARR growth of 2.5%.
Negative Updates
Persistent Headwinds in China and Geopolitical Constraints
China represents approximately 2% of ARR and management highlighted limited accessibility to large Chinese design firms due to geopolitical tensions (25 Chinese organizations accounted for ~25% of ENR top design firm billings but are generally inaccessible), constraining addressable market penetration in China.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue and ARR Growth
Q1 total revenues of $424 million, up 14.5% year-over-year (11.9% constant currency). ARR at quarter end $1.495 billion, with year-over-year ARR growth of 11.5% (constant currency) and sequential quarterly ARR growth of 2.5%.
Read all positive updates
Company Guidance
Management reiterated they remain comfortable with the 2026 financial outlook and expect to meet full‑year targets — including free cash flow guidance of $500–$570 million (Q1 FCF was $188M; LTM FCF $492M, +13% YoY). Q1 operating results that underpin the guidance included total revenue of $424M (+14.5% YoY; +11.9% CC), subscription revenue (93% of total) up 14.7% (+12.2% CC), ARR of $1.495B (+11.5% YoY CC; +2.5% sequential), LTM recurring revenues of $1.440B (+13.3% YoY), constant‑currency net revenue retention of 109% and account retention of 99%. Profitability metrics were AOI less operating SBC of $141M (margin 33.2%) and GAAP operating income of $126M; management cautioned that operating expense and cash‑flow timing will be more H1‑weighted due to earlier investments. They also flagged a modest FX headwind (~$2M revenue impact in Q1; ~$3M potential Q2–Q4 if April rates persist) and emphasized balance‑sheet flexibility after retiring $678M of 2026 convertible notes (reducing diluted shares by ~10.6M, ~3%), lowering net debt by $134M, cutting leverage to 1.9x adjusted EBITDA and increasing borrowing capacity to $1.85B.Bentley Systems Financial Statement Overview
Summary
Income Statement
82
Very Positive
Balance Sheet
68
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.56B | 1.50B | 1.35B | 1.23B | 1.10B | 965.05M |
| Gross Profit | 1.27B | 1.22B | 1.10B | 910.24M | 862.07M | 748.51M |
| EBITDA | 486.82M | 429.05M | 382.44M | 288.44M | 304.87M | 152.34M |
| Net Income | 281.88M | 277.86M | 234.79M | 326.79M | 174.78M | 93.19M |
Balance Sheet | ||||||
| Total Assets | 3.52B | 3.56B | 3.40B | 3.32B | 3.17B | 2.66B |
| Cash, Cash Equivalents and Short-Term Investments | 105.16M | 123.28M | 64.01M | 68.41M | 71.68M | 329.34M |
| Total Debt | 1.17B | 1.28B | 1.43B | 1.57B | 1.82B | 1.49B |
| Total Liabilities | 2.30B | 2.37B | 2.36B | 2.44B | 2.59B | 2.25B |
| Stockholders Equity | 1.23B | 1.19B | 1.04B | 883.28M | 572.75M | 409.22M |
Cash Flow | ||||||
| Free Cash Flow | 491.69M | 520.21M | 421.25M | 391.69M | 255.78M | 270.49M |
| Operating Cash Flow | 512.46M | 538.46M | 435.29M | 416.70M | 274.32M | 288.02M |
| Investing Cash Flow | -114.82M | -112.31M | -143.27M | -60.50M | -770.13M | -1.06B |
| Financing Cash Flow | -379.93M | -376.30M | -289.85M | -359.07M | 243.03M | 982.58M |
Bentley Systems Technical Analysis
Neutral
35.08
Price Trends
34.27
Negative
35.50
Negative
41.98
Negative
Market Momentum
-0.31
Negative
49.30
Neutral
74.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BSY, the sentiment is Neutral. The current price of 35.08 is above the 20-day moving average (MA) of 32.80, above the 50-day MA of 34.27, and below the 200-day MA of 41.98, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 49.30 is Neutral, neither overbought nor oversold. The STOCH value of 74.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BSY.
Bentley Systems Risk Analysis
Bentley Systems disclosed 37 risk factors in its most recent earnings report. Bentley Systems reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bentley Systems Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $13.21B | 45.05 | 8.71% | ― | 8.68% | 8.27% | |
75 Outperform | $8.20B | 40.30 | 78.22% | ― | 4.78% | 1.30% | |
72 Outperform | $11.87B | 49.66 | 12.92% | ― | 23.72% | ― | |
70 Outperform | $16.15B | 18.04 | 11.74% | 1.17% | 7.46% | 0.44% | |
69 Neutral | $5.74B | 54.82 | 50.21% | 0.16% | 3.50% | 75.14% | |
68 Neutral | $10.07B | 28.77 | 23.62% | 0.72% | 12.23% | 10.63% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
BSY
Bentley Systems
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Bentley Systems Corporate Events
Private Placements and Financing
Bentley Systems Adds New $550 Million Term Loan Facility
Positive
Apr 27, 2026
On April 23, 2026, Bentley Systems, Incorporated amended its existing credit agreement by entering into a First Amendment and Incremental Facility Agreement with a syndicate of lenders led by PNC Bank, National Association, as administrative agent...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Bentley Systems Posts Strong Q4 Results and 2026 Outlook
Positive
Feb 26, 2026
Bentley Systems reported on February 26, 2026 that fourth-quarter 2025 revenue rose 11.9% year-on-year to $391.6 million, with subscription revenue up 13% and operating margin improving to 20%, while annualized recurring revenue reached $1.46 bill...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.