Roper Technologies, Inc.
ROP · Nasdaq
Next quarter
Reports Oct 22, 2026.
Consensus is $5.79 EPS for Sep 2026 across 8 estimates, ranging $5.76 to $5.86.
ROP Jun 2026
- 1.70%
- +3.44%
- $5.29
- $5.38
- —
- $2.11B
Reported results
- $2.11B
- 69.71%
- $584.70M
- 27.73%
- $1.17B
- $11.62
Highlights
- Second-quarter revenue was $2,108.9 million, up 8.5% year over year, while reported net income was $1.17 billion.
- Application Software revenue rose 7.8% to $1,180.8 million, with 4.5% organic growth and a 27.4% operating margin versus 26.9% a year earlier.
- Network Software revenue increased 11.8% to $430.9 million, including 3.6% organic growth, but operating margin declined to 41.0% from 43.9%.
- Technology Enabled Products revenue grew 7.3% to $497.2 million, including 7.1% organic growth, while operating margin fell to 33.3% from 35.4%.
- Total segment operating margin was 31.6% versus 32.3% a year earlier; quarterly capital expenditures were $10.4 million and capitalized software expenditures were $15.5 million.
- Backlog reached $3,286.0 million, up 11.0% year over year, while remaining performance obligations totaled $5,222.6 million, with approximately 63%, or $3,286.0 million, expected to be recognized over the next 12 months.
Analysis
No consensus figures are available, so the quarter cannot be judged against an external earnings estimate. Revenue increased 8.5% to $2,108.9 million, versus $1,943.6 million a year earlier, with growth across all three segments. Application Software was the largest contributor at $1,180.8 million and improved its operating margin to 27.4%, helped by organic growth and leverage. Network Software grew fastest, but its margin declined to 41.0% as acquired businesses brought higher SG&A and amortization. Technology Enabled Products also grew, though its margin dropped to 33.3% because of water-meter input costs and a consumables-heavy medical-products mix. Total segment operating margin narrowed to 31.6% from 32.3%, while income-from-operations margin fell to 27.7% from 28.2%. Reported net income benefited substantially from an $835.2 million equity-investment gain, primarily the $828.6 million increase in Indicor’s fair value.
Guidance
Management gave no formal quarterly or full-year revenue, earnings, margin, or cash-flow guidance in the supplied material, so there are no new ranges to compare with a prior guide. The company did provide forward revenue visibility: remaining performance obligations were $5,222.6 million at June 30, 2026, and approximately 63%, or $3,286.0 million, is expected to be recognized over the next 12 months. Backlog was $3,286.0 million, up 11.0% year over year. Management noted that deferred-revenue movements were affected by SaaS and PCS renewal timing, particularly Frontline’s renewal cycle in the third quarter.
What drove it
- Application Software — Revenue was $1,180.8 million, up 7.8%, with 4.5% organic growth led by legal, project-based private sector, property and casualty insurance, higher education, and acute healthcare businesses.
- Network Software — Revenue grew 11.8% to $430.9 million, led by 2025 acquisitions including Subsplash, while organic growth was 3.6%.
- Medical Products — Technology Enabled Products organic revenue growth was 7.1%, led by precision measurement and airway management businesses.
- Indicor Gain — Equity investment activity produced an $835.2 million gain, primarily from an $828.6 million increase in Indicor’s fair value.
- Backlog — Backlog increased 11.0% to $3,286.0 million, driven primarily by acquisitions and organic growth in the software segments.
Watch items
- Network Software operating margin fell to 41.0% from 43.9% as acquired businesses increased SG&A and amortization, while payments revenue from Subsplash and the Convoy platform had different margin profiles.
- Technology Enabled Products operating margin declined to 33.3% from 35.4%, pressured by water-meter input costs, an expected decline in that business, and a consumables-heavy medical-products mix.
- Net interest expense increased to $111.4 million from $79.1 million because of higher average debt balances and a higher weighted-average interest rate on senior notes.
- Organic revenue growth was 4.9% for the company, below the 8.5% reported growth rate because acquisitions contributed 3.4 percentage points.
