Roper Technologies’ ROP second-quarter 2026 adjusted earnings of $5.38 per share surpassed the Zacks Consensus Estimate of $5.29. The bottom line increased 10% on a year-over-year basis.
Roper’s net revenues of $2.11 billion beat the consensus estimate of $2.10 billion. The top line increased 9% year over year. Organic revenues grew 5%, driven by solid momentum in the Application Software segment. Acquisitions boosted sales by 3%.
Roper’s Segmental Performance in Q2
The company reports under three segments, namely Application Software, Network Software and Technology Enabled Products.
Application Software’s revenues totaled $1.18 billion, representing 56% of the quarter’s top line. The metric came almost in line with the Zacks Consensus Estimate. The segment’s revenues increased 8% on a year-over-year basis. Organic revenues increased 5%. Acquisitions boosted sales by 3%. Solid momentum in the company’s Aderant, Deltek, Vertafore and CentralReach businesses augmented the segment’s performance.
Network Software & Systems generated revenues of $430.9 million, accounting for 20.4% of the quarterly top line. The Zacks Consensus Estimate for the segment’s revenues was pegged at $437 million. Segmental revenues grew 12% year over year. Organic revenues increased 4%. Acquisitions boosted sales by 8%. Strong momentum in the ConstructConnect, Foundry and DAT businesses supported the segment’s performance.
The Technology Enabled Products segment generated revenues of $497.2 million, accounting for 23.6% of the quarter’s top line. The Zacks Consensus Estimate for the segment’s revenues was pegged at $475 million. Sales were up 7% year over year. Organic revenues grew 7%. The strong performance of the Verathon and NDI businesses drove the segment’s top-line performance.
Roper Technologies, Inc. Price, Consensus and EPS Surprise
Roper Technologies, Inc. price-consensus-eps-surprise-chart | Roper Technologies, Inc. Quote
ROP’s Margin Profile
Roper’s cost of sales increased 6.8% year over year to $638.7 million. Gross profit increased 9.3% to about $1.47 billion, while the gross margin increased to 69.7% from 69.2% in the year-ago quarter.
Selling, general and administrative expenses increased 11.1% year over year to $885.5 million. Adjusted EBITDA was $815 million, reflecting year-over-year growth of 5%. The margin decreased 130 basis points to 38.6%. Interest expenses (net) increased 40.8% year over year to $111.4 million.
Balance Sheet & Cash Flow of Roper
Exiting the second quarter of 2026, Roper had cash and cash equivalents of $364.9 million compared with $297.4 million at the end of December 2025. Long-term debt (net of current portion) was $10.60 billion compared with $8.60 billion at the end of 2025.
Roper generated net cash of $1.06 billion from operating activities in the first six months of 2026, reflecting an increase of 13.8% from the year-ago level. Capital expenditure totaled $25.3 million compared with $26 million in the year-ago period.
In the same period, ROP rewarded its shareholders with a dividend payment of $191.4 million, up 8% year over year. It repurchased shares worth $3.2 billion.
Roper’s Outlook
For 2026, Roper expects adjusted earnings per share from continuing operations to be in the range of $22.15-$22.30 compared with $21.80-$22.05 projected earlier. Total revenues are expected to increase more than 8%. Organic revenues are anticipated to increase approximately 6% from the year-ago number.
For the third quarter of 2026, Roper anticipates adjusted earnings to be in the band of $5.75-$5.80 per share.
ROP’s Zacks Rank and Other Stocks to Consider
The company currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks are discussed below:
Amdocs DOX carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amdocs’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 1.3%. In the past 60 days, the Zacks Consensus Estimate for DOX’s fiscal 2026 bottom line has been stable.
CoStar Group CSGP presently carries a Zacks Rank of 2. CoStar Group’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 23%. In the past 60 days, the Zacks Consensus Estimate for CSGP’s 2026 earnings has been stable.
Nutanix NTNX currently carries a Zacks Rank of 2. Nutanix’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 19.3%. In the past 60 days, the Zacks Consensus Estimate for NTNX’s fiscal 2026 earnings has increased 5.5%.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
(0) comments
Welcome to the discussion.
Log In
Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.