Bentley Systems (BSY) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong operating and financial performance, with total revenues of $424.2 million, up 14.5% year-over-year, driven by robust demand for infrastructure solutions and continued momentum from 2025.

• AI initiatives accelerated, with Asset Analytics surpassing $50 million in annual revenue run rate and significant progress in AI integration across the product portfolio, enhancing engineering workflows.

• Resources sector, led by Seequent, was the second-largest and fastest-growing, accounting for over 20% of sector attributable ARR and maintaining leadership in mining and geothermal energy.

• Large enterprise accounts remained a key revenue driver, with 45% of revenue from 220 accounts spending over $1 million annually and over 40,000 accounts overall.

Financial highlights

• Q1 2026 total revenues reached $424 million, up 14.5% year-over-year (11.9% constant currency); subscription revenues grew 14.7% to $392.5 million, representing 93% of total revenues.

• ARR ended at $1.495 billion, with 11.5% year-over-year growth (constant currency) and 2.5% sequential growth, all organic.

• Adjusted operating income less stock-based compensation was $141 million, with a margin of 33.2%; AOI less operating SBC margin improved to 34.6% from 33.2% in the prior year.

• Free cash flow for the quarter was $188 million; last 12 months free cash flow was $492 million, up 13% year-over-year.

• Net income attributable to stockholders was $95.4 million, with diluted EPS of $0.30, up from $0.28 year-over-year.

Outlook and guidance

• 2026 financial outlook remains unchanged, with confidence in meeting full-year free cash flow guidance of $500–$570 million and revenue outlook of $1,685–$1,715 million (+11% to 13% constant currency).

• ARR growth expected at 11% to 13% in constant currency, with stable organic year-over-year ARR growth rates and similar seasonality to 2025.

• AOI less operating SBC guidance: $495–$510 million, with annual margin improvement of ~100bps.

• Foreign exchange headwinds could reduce Q2–Q4 GAAP revenues by ~$3 million if current rates persist.

• General and administrative expenses are expected to rise due to amortization of internal-use software implementation costs.