Bentley Systems (BSY) Stock Forecast & Price Target

Bentley Systems is poised for positive financial performance, with expectations of service revenue growth between 15-20% in constant currency following a challenging period in professional services. The company's Annual Recurring Revenue (ARR) reached $1,462 million, reflecting an 11.5% year-over-year increase in constant currency, alongside a notable acceleration in quarter-over-quarter ARR growth, marking the highest rate observed to date. Strong infrastructure project activity in the U.S., along with strategic initiatives such as the E365 subscription program and an expanding customer base for Virtuosity, further support a positive outlook for the company’s financial trajectory.

Bentley Systems has experienced a 21% decline in shares since October, primarily attributed to disappointing net new Annual Recurring Revenue (ARR) results in Q3, which the company had previously indicated would be the low point. The outlook suggests that while there may be a modest rebound potential, concerns remain regarding the company's growth trajectory, particularly with projected 2026 growth anticipated to be around 10%. Furthermore, comparisons with peer companies indicate that Bentley is less likely to rapidly pivot on profitability in response to the current market trends, thereby limiting its ability to drive significant ARR growth in the future.