Bentley Systems (NASDAQ:BSY) saw its shares jump 12.8% in Thursday morning trading after the infrastructure engineering software provider reported fourth-quarter results that topped revenue estimates and provided a 2026 financial forecast that significantly outpaced Wall Street projections.
The Exton, Pennsylvania-based company reported fourth-quarter revenue of $391.6 million, an 11.9% increase year-over-year, surpassing the $381 million expected by analysts.
Non-GAAP earnings per share came in at $0.27, meeting consensus estimates and reflecting a disciplined transition toward a 92% subscription-based recurring revenue model.
A key driver of investor optimism was management’s commentary on "infrastructure AI."
Executive Chair Greg Bentley characterized AI as an "unprecedented opportunity" rather than a disruptive risk, highlighting the company’s success in embedding AI into its digital twin platforms.
The company’s recent acquisitions of Talon Aerolytics and Pointivo have bolstered its Asset Analytics portfolio, allowing owner-operators to use AI-driven digital twins to optimize the maintenance of aging infrastructure.
The fourth-quarter results also showcased a significant improvement in capital efficiency.
The company’s free cash flow margin for the quarter surged, ending the period 13 percentage points higher than the previous year.
This cash generation enabled Bentley to reduce its net debt leverage to 2.1x and repay nearly $680 million in convertible notes earlier this year.
Meanwhile, Bentley Systems initiated full-year 2026 guidance that projects sustained double-digit growth.
The company expects total revenue in the range of $1.685 billion to $1.715 billion, with the midpoint coming in well above the $1.64 billion previously expected by the market.