EarningsQ2 2026 Earnings Report
MX:BSY Q2 2026 EPS Results
Actual EPS$6.36
Consensus EPS$5.74
Beat/MissBeat by +$0.62
One Year Ago EPS$5.81
MX:BSY Q2 2026 Revenue Results
Actual Revenue$7.46B
Expected Revenue$7.48B
Beat/MissMissed by -$25.35M
YoY Revenue Growth+12.80%
Earnings Announcement Details
QuarterQ2 2026
Date08/06/2026
TimeBefore Open
Conference CallThursday, August 6, 2026
MX:BSY Upcoming Earnings
Bentley Systems's next earnings date is estimated for November 10, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:BSY Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed a predominantly positive operational and financial story: solid recurring revenue and ARR growth (ARR +12% YoY CC), high retention (NRR 109%), improving free cash flow (LTM FCF $498M), and strong momentum in strategic areas like PLS and resources. Management emphasized disciplined capital allocation (share repurchases, debt reduction) and significant progress on the infrastructure AI initiative (multiple MCP servers released, open model strategy). Lowlights were largely timing, macro and execution-related (China/geopolitics, FX headwinds, front-loaded investments, lumpy Asset Analytics monetization and the deliberate delay to monetize AI until validated). Overall, positive fundamentals and clear strategic initiatives outweigh near-term risks and timing effects.Company Guidance
Top-Line Revenue Growth
Total revenues of $411 million in Q2, up 12.8% year-over-year (12.2% constant currency); first half revenues up 13.6% (12.1% constant currency). Subscription revenues represented 92% of total and grew 13.6% year-over-year (13.0% constant currency).
Recurring Revenue and ARR Momentum
Last-12-month recurring revenues were $1.486 billion, up 13.5% year-over-year (11.8% constant currency) and representing 93% of total revenues. ARR ended Q2 at $1.536 billion with year-over-year constant-currency ARR growth of 12% and sequential quarterly ARR growth of 2.9% (all organic).
Strong Retention and Net Revenue Retention
High account retention: last-12-month constant-currency account retention rate of 99% and a net revenue retention rate of 109%, consistent with prior quarters, indicating stability and expansion within the installed base.
Profitability and Margin Discipline
Adjusted operating income less operating SBC (AOI less operating SBC) was $116 million for Q2 with a margin of 28.3% and $257 million for H1 with a margin of 30.8%. LTM burdened free cash flow reached $426 million and LTM free cash flow reached $498 million, up ~15% year-over-year on the last-12-month basis.
Free Cash Flow and Capital Returns
Free cash flow of $64 million in Q2 and $252 million for the first half; LTM free cash flow of $498 million (up 15%). Returned capital in H1: $155 million in share repurchases and $42 million in dividends. Repurchased 3.1 million shares in Q2 and reduced net debt by $32 million in H1; net debt leverage ~1.9x adjusted EBITDA.
Commercial Momentum and New Logos
Renewals were strong (Q2 is typically the company's second-largest renewal quarter). New logos contributed roughly 300 basis points to ARR growth, with Virtuoso adding over 600 SMB logos in Q2, supporting sustained SMB momentum and cross-sell opportunities.
Power Line Systems (PLS) and Electric Grid Strength
PLS continues to out-perform: international expansion has made PLS revenue outside the U.S. as large as the entire PLS business at acquisition in 2022. PLS is a key driver for electric grid growth and delivered tangible customer outcomes (e.g., $80M cost savings and accelerated rebuilds). PLS user conference drew 500+ attendees from 20 countries.
Progress on Infrastructure AI Initiative
Infrastructure AI initiative advancing: initial MCP server for STAAD expanded to five additional MCP servers (six total released across open applications), three new MCP servers for PLS (including PLS-GRID) announced. Management is executing an open approach (supporting multiple LLMs and models) and prioritizing adoption, exploration and validation before monetization, with monetization expected to begin in 2027.
Balanced Capital Allocation and Share Count Improvement
Redeemed convertible debt earlier in the year, reduced fully diluted share count to 319 million, continued disciplined SBC and repurchase approach to avoid dilution, and completed a $550 million Term Loan A to lower interest cost and preserve strategic capacity.
MX:BSY Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed