Bentley Systems (BSY): Evaluating Valuation After Q2 Revenue Growth and AI-Focused Infrastructure Initiatives

Bentley Systems (BSY) is back in the spotlight after its recent Q2 earnings report revealed steady growth in both total revenues and annual recurring revenue. Beyond the headline numbers, what has caught the market’s attention is Bentley’s active push into artificial intelligence, as highlighted by its public pledge to advance AI education for America’s youth. The combination of expanding subscription revenue and a strong commitment to digital infrastructure suggests that the company is not only keeping pace with industry trends, but actively shaping them.

Momentum around Bentley Systems has quietly built over the past year, with the stock delivering a 17.8% return and climbing 13% in just the past three months. Recent shareholder moves and headline-grabbing initiatives, such as equipping students with AI tools and deepening its digital twin platform, have reinforced a narrative of steady leadership and evolving opportunities within infrastructure software. These factors, paired with consistent revenue gains, are making investors sit up and watch for what comes next.

The question now is whether investors are looking at a buying opportunity, or if all this future growth is already reflected in Bentley’s current valuation.

Most Popular Narrative: 8.1% Undervalued

Bentley Systems is seen as undervalued according to the most widely followed narrative, which highlights ongoing digital transformation and infrastructure investment as key tailwinds for the company’s financial prospects.

"Sustained global investment in infrastructure, driven by government initiatives in the US, UK, EU, and high-growth regions like India and the Middle East, continues to expand Bentley's addressable market. This supports durable double-digit ARR and revenue growth. Large-scale productivity challenges, such as the shortage of skilled engineers, are forcing the sector to accelerate digital transformation and are elevating demand for Bentley's AI-driven, cloud-based, and digital twin solutions. These trends may drive both revenue expansion and a higher-margin product mix."

Want to know what’s powering Bentley’s above-market fair value? The narrative hints at massive changes in recurring revenue, evolving profit margins, and an expectation for industry-defying growth. Unpack the critical financial assumptions and see what justifies this premium. Some numbers might surprise even seasoned investors.

Result: Fair Value of $59.08 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, shifts toward automation and growing competition from cloud-native rivals could challenge Bentley’s growth prospects and put pressure on its recurring revenues in coming years.

Find out about the key risks to this Bentley Systems narrative.

Another View: Market Signals a Higher Bar

Looking at the company through common valuation ratios paints a challenging picture. The market price is well above typical levels for the sector, which suggests investor expectations might already be stretched. Does this reveal optimism or risk?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Bentley Systems to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Bentley Systems Narrative

If you have a different perspective or want to dig into the details yourself, you can craft your own take on Bentley in just a few minutes. Do it your way.

A great starting point for your Bentley Systems research is our analysis highlighting 1 key reward and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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