Does BSY's Balancing of Steady Profits and Buybacks Reflect a Strategic Capital Allocation Shift?

• Bentley Systems recently completed a share repurchase of 499,143 shares for US$20 million and announced its second quarter 2025 financial results, reporting US$364.11 million in revenue and US$70.48 million in net income.
• An interesting detail is that despite year-over-year revenue growth, net income for the second quarter was steady, highlighting the company’s emphasis on shareholder returns through continued buyback activity.
• We'll examine how the blend of rising revenue and steady earnings in the latest results could influence Bentley Systems' investment narrative.

This technology could replace computers: discover 24 stocks that are working to make quantum computing a reality.

Bentley Systems Investment Narrative Recap

To be a Bentley Systems shareholder today, you need to believe that global infrastructure digitization and ongoing government investments will continue to support the company’s subscription-based growth. The recent share buyback and steady net income, even with rising revenues, don’t materially change the short-term catalyst, which is continued double-digit ARR growth as infrastructure spending remains robust. However, they don’t significantly ease the biggest risk: the potential impact of cloud-native SaaS competitors challenging Bentley’s pricing power and recurring revenue trajectory.

The most relevant announcement is Bentley’s selection by the Pennsylvania Department of Transportation (PennDOT) to provide civil design solutions across the state. This directly reinforces the main catalyst: increasing adoption of digital engineering platforms by public infrastructure agencies, which could support recurring software revenues and help offset risks related to competitive pressure and market saturation.

But as public initiatives continue to drive demand, investors should also be aware of the potential downside if...

Read the full narrative on Bentley Systems (it's free!)

Bentley Systems is projected to reach $1.9 billion in revenue and $443.2 million in earnings by 2028. This outlook is based on a 9.7% annual revenue growth rate and a $188.9 million increase in earnings from the current level of $254.3 million.

Uncover how Bentley Systems' forecasts yield a $59.08 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community placed their fair value estimates for Bentley Systems between US$39.90 and US$65 per share. While many investors see room for growth alongside public sector adoption, some highlight the importance of monitoring competition from SaaS rivals as a key consideration for the company over the long term.

Explore 4 other fair value estimates on Bentley Systems - why the stock might be worth as much as 22% more than the current price!

Build Your Own Bentley Systems Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Bentley Systems research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Bentley Systems research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Bentley Systems' overall financial health at a glance.

Want Some Alternatives?

Early movers are already taking notice. See the stocks they're targeting before they've flown the coop:

• The latest GPUs need a type of rare earth metal called Dysprosium and there are only 27 companies in the world exploring or producing it. Find the list for free.
• Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit.
• The end of cancer? These 26 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com