Roper Technologies announces first quarter financial results
Rhea-AI Summary
Roper Technologies (Nasdaq: ROP) reported Q1 2026 results: revenue $2.10B (+11%), GAAP net earnings $509M (+54%), adjusted net earnings $539M (+4%), adjusted EBITDA $797M (+8%), operating cash flow $592M (+12%) and free cash flow $562M (+11%).
Company increased full‑year adjusted DEPS guidance to $21.80–$22.05, raised Q2 adjusted DEPS to $5.25–$5.30, and expanded share repurchase authority.
Positive
- Revenue $2.10B (+11% YoY)
- GAAP net earnings $509M (+54% YoY)
- Adjusted DEPS guidance increased to $21.80–$22.05
- Repurchased 6.0M shares to date for $2.2B
Negative
- Adjusted EBITDA margin contracted 120 bps to 38.1%
Market Reaction – ROP
Following this news, ROP has gained 2.85%, reflecting a moderate positive market reaction. Our momentum scanner has triggered 2 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $375.11. This price movement has added approximately $1.03B to the company's valuation.
Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.
Key Figures
Market Reality Check
Peers on Argus
While ROP gained about 0.5%, sector peers in application software on the momentum scanner (e.g., TEAM -6.23%, WDAY -4.61%, SNOW -3.52%) moved lower, indicating a stock-specific reaction to its earnings rather than a sector-wide move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 27 | Full-year 2025 results | Positive | -9.6% | Reported FY 2025 growth and initiated 2026 guidance with solid revenue gains. |
| Apr 28 | Q1 2025 earnings | Positive | -1.0% | Strong Q1 2025 growth and increased 2025 adjusted DEPS guidance after acquisitions. |
| Jan 30 | Full-year 2024 results | Positive | +5.1% | Delivered robust 2024 revenue and earnings growth and set higher 2025 outlook. |
| Oct 23 | Q3 2024 earnings | Positive | -1.7% | Strong Q3 2024 results and raised 2024 adjusted EPS guidance post acquisition. |
| Jul 24 | Q2 2024 earnings | Positive | -7.4% | Solid Q2 2024 performance with higher full‑year adjusted DEPS guidance. |
Earnings releases are generally positive on fundamentals and guidance, but the stock has more often traded down or muted afterward, with only 1 of the last 5 earnings events showing a positive 24-hour reaction.
Over the past few years, Roper has repeatedly reported double‑digit revenue growth, rising adjusted EBITDA, and consistent free cash flow expansion, alongside ongoing vertical software acquisitions and periodic guidance raises. Despite this, four of the last five earnings releases led to negative next‑day moves, suggesting investors often fade good news. Today’s Q1 2026 report continues the pattern of revenue and DEPS growth plus a guidance increase and larger buybacks, fitting into a multi‑year compounding strategy.
Historical Comparison
Across the last five earnings releases, ROP’s average next‑day move was -2.92%, indicating investors often reacted cautiously despite recurring revenue, cash flow, and guidance strength.
Earnings updates show a steady progression of double‑digit revenue growth, rising adjusted DEPS, and repeated guidance increases into 2025 and 2026, supported by ongoing software acquisitions and strong free cash flow.
Market Pulse Summary
This announcement highlighted robust Q1 2026 performance, with revenue up 11% to $2.10B, adjusted DEPS rising to $5.16, and free cash flow of $562M. Management raised full‑year adjusted DEPS guidance to $21.80–$22.05 and expanded share repurchase authorization, signaling confidence in long‑term free cash flow growth. Historically, earnings have been strong but market reactions mixed, so investors may focus on execution of AI initiatives, acquisition integration, and ongoing cash generation.
Key Terms
adjusted EBITDA financial
free cash flow financial
non-GAAP financial
GAAP financial
DEPS financial
AI-generated analysis. Not financial advice.
Increases full year DEPS guidance and expands share repurchase program
SARASOTA, Fla., April 23, 2026 (GLOBE NEWSWIRE) -- Roper Technologies, Inc. (Nasdaq: ROP) reported financial results for the first quarter ended March 31, 2026.
First quarter 2026 highlights
- Revenue increased
11% to$2.10 billion ; organic revenue was +6% and acquisition contribution was +5% - GAAP net earnings increased
54% to$509 million ; adjusted net earnings increased4% to$539 million - Adjusted EBITDA increased
8% to$797 million - Operating cash flow increased
12% to$592 million ; free cash flow increased11% to$562 million - Repurchased 4.3 million shares for
$1.5 billion in Q1 (program to date: 6.0 million shares for$2.2 billion ) - GAAP DEPS increased
59% to$4.87 ; adjusted DEPS increased8% to$5.16
“First quarter results were strong across the board, with
“During the quarter, our businesses continued shipping AI products, fueled by Roper's expanded AI capacity and accelerated speed of execution. Early market response validates what we have long believed: vertical market leaders with proprietary data and deep workflow density are best positioned to deliver AI solutions that customers actually value and utilize."
“We are raising our full year DEPS outlook on the strength of Q1, share repurchases to date, and resilient demand for our businesses' mission-critical solutions. With more than
Increasing 2026 guidance
Roper now expects full year 2026 adjusted DEPS of
For the second quarter of 2026, the Company expects adjusted DEPS of
The Company’s guidance excludes the impact of unannounced future acquisitions or divestitures, as well as potential share repurchases.
Conference call to be held at 8:00 AM (ET) today
A conference call to discuss these results has been scheduled for 8:00 AM ET on Thursday, April 23, 2026. The call can be accessed via webcast or by dialing +1 800-836-8184 (US/Canada) or +1 646-357-8785, using conference call ID 23216. Webcast information and conference call materials will be made available in the Investors section of Roper’s website (www.ropertech.com) prior to the start of the call. The webcast can also be accessed directly by using the following URL https://event.webcast. Telephonic replays will be available for up to two weeks and can be accessed by dialing +1 646-517-4150 with access code 23216 #.
Use of non-GAAP financial information
The Company supplements its consolidated financial statements presented on a GAAP basis with certain non-GAAP financial information to provide investors with greater insight, increase transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. Reconciliation of non-GAAP measures to their most directly comparable GAAP measures are included in the accompanying financial schedules or tables. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP, and the financial results prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated.
Minority interest
Following the sale of a majority stake in its industrial businesses to CD&R, Roper holds a minority interest in Indicor. The fair value of Roper’s equity investment in Indicor is updated on a quarterly basis and reported as "equity investment (gain) loss, net." Roper makes non-GAAP adjustments for the impacts associated with this investment.
| Table 1: Revenue and adjusted EBITDA reconciliation ($M) | ||||||||||
| Q1 2025 | Q1 2026 | V % | ||||||||
| GAAP revenue | $ | 1,883 | $ | 2,095 | 11 % | |||||
| Components of revenue growth | ||||||||||
| Organic | 6 % | |||||||||
| Acquisitions | 5 % | |||||||||
| Foreign exchange | 1 % | |||||||||
| Total revenue growth | 11 % | |||||||||
| Adjusted EBITDA reconciliation | ||||||||||
| GAAP net earnings | $ | 331 | $ | 509 | ||||||
| Taxes | 87 | 126 | ||||||||
| Interest expense | 63 | 99 | ||||||||
| Depreciation | 9 | 10 | ||||||||
| Amortization | 204 | 220 | ||||||||
| EBITDA | $ | 694 | $ | 965 | 39 % | |||||
| Transaction-related expenses for completed acquisitions | 1 | — | ||||||||
| Financial impacts associated with minority investments | 44 | (167 | ) | A | ||||||
| Adjusted EBITDA | $ | 740 | $ | 797 | 8 % | |||||
| Adjusted EBITDA margin | 39.3 | % | 38.1 | % | (120 bps) | |||||
| Table 2: Adjusted net earnings reconciliation ($M) | |||||||||
| Q1 2025 | Q1 2026 | V % | |||||||
| GAAP net earnings | $ | 331 | $ | 509 | 54 % | ||||
| Transaction-related expenses for completed acquisitions | 1 | — | |||||||
| Financial impacts associated with minority investments | 32 | (134 | ) | A | |||||
| Amortization of acquisition-related intangible assets | 154 | 164 | B | ||||||
| Adjusted net earnings C | $ | 517 | $ | 539 | 4 % | ||||
| Table 3: Adjusted DEPS reconciliation | |||||||||
| Q1 2025 | Q1 2026 | V % | |||||||
| GAAP DEPS | $ | 3.06 | $ | 4.87 | 59 % | ||||
| Transaction-related expenses for completed acquisitions | 0.01 | — | |||||||
| Financial impacts associated with minority investments | 0.29 | (1.28 | ) | A | |||||
| Amortization of acquisition-related intangible assets | 1.42 | 1.57 | B | ||||||
| Adjusted DEPS C | $ | 4.78 | $ | 5.16 | 8 % | ||||
| Table 4: Cash flow reconciliation ($M) | ||||||||||
| Q1 2025 | Q1 2026 | V % | ||||||||
| Operating cash flow | $ | 529 | $ | 592 | 12 % | |||||
| Capital expenditures | (10 | ) | (14 | ) | ||||||
| Capitalized software expenditures | (12 | ) | (15 | ) | ||||||
| Free cash flow | $ | 507 | $ | 562 | 11 % | |||||
| Table 5: Forecasted adjusted DEPS reconciliation | |||||||||||||
| Q2 2026 | FY 2026 | ||||||||||||
| Low end | High end | Low end | High end | ||||||||||
| GAAP DEPS D | $ | 3.64 | $ | 3.69 | $ | 16.67 | $ | 16.92 | |||||
| YTD financial impacts associated with the minority investment in Indicor A | TBD | TBD | (1.28 | ) | (1.28 | ) | |||||||
| Amortization of acquisition-related intangible assets B | 1.61 | 1.61 | 6.41 | 6.41 | |||||||||
| Adjusted DEPS C | $ | 5.25 | $ | 5.30 | $ | 21.80 | $ | 22.05 | |||||
Footnotes:
| A. | Adjustments related to the financial impacts associated with the minority investment in Indicor as shown below ($M, except per share data). Forecasted results do not include any potential impacts associated with our minority investment in Indicor, as these potential impacts cannot be reasonably predicted. These impacts will be excluded from all non-GAAP results in future periods. | |||||||||||||||
| Q1 2026A | Q2 2026E | FY 2026E | YTD 2026A | |||||||||||||
| Pretax | $ | (167 | ) | TBD | TBD | $ | (167 | ) | ||||||||
| After-tax | $ | (134 | ) | TBD | TBD | $ | (134 | ) | ||||||||
| Per share | $ | (1.28 | ) | TBD | TBD | $ | (1.28 | ) | ||||||||
| B. | Actual results and forecast of estimated amortization of acquisition-related intangible assets as shown below ($M, except per share data). | |||||||||||||||
| Q1 2026A | Q2 2026E | FY 2026E | ||||||||||||||
| Pretax | $ | 208 | $ | 209 | $ | 837 | ||||||||||
| After-tax | $ | 164 | $ | 165 | $ | 661 | ||||||||||
| Per share | $ | 1.57 | $ | 1.61 | $ | 6.41 | ||||||||||
| C. | All actual and forecasted non-GAAP adjustments are taxed at | |||||||||||||||
| D. | Forecasted GAAP DEPS do not include any potential impacts associated with our minority investment in Indicor. These impacts will be excluded from all non-GAAP results in future periods. | |||||||||||||||
Note: Numbers may not foot due to rounding.
About Roper Technologies
Roper Technologies is a constituent of the Nasdaq 100, S&P 500, and Fortune 1000. Roper has a proven, long-term track record of compounding cash flow and shareholder value. The Company operates market leading businesses that design and develop vertical software and technology enabled products for a variety of defensible niche markets. Roper utilizes a disciplined, analytical, and process-driven approach to redeploy its excess capital toward high-quality acquisitions. Additional information about Roper is available on the Company’s website at www.ropertech.com.
Contact information:
Investor Relations
941-556-2601
investor-relations@ropertech.com
The information provided in this press release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements may include, among others, statements regarding operating results, the success of our internal operating plans, and the prospects for newly acquired businesses to be integrated and contribute to future growth, profit and cash flow expectations. Forward-looking statements may be indicated by words or phrases such as "anticipate," "estimate," "plans," "expects," "projects," "should," "will," "believes," "intends" and similar words and phrases. These statements reflect management's current beliefs and are not guarantees of future performance. They involve risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statement. Such risks and uncertainties include our ability to identify and complete acquisitions consistent with our business strategies, integrate acquisitions that have been completed, realize expected benefits and synergies from, and manage other risks associated with, acquired businesses, including obtaining any required regulatory approvals with respect thereto, and our ability to develop, deploy, and use artificial intelligence in our platforms and offerings. We also face other general risks, including our ability to realize cost savings from our operating initiatives, general economic conditions and the conditions of the specific markets in which we operate, including risks related to labor shortages and volatile interest rates, changes in foreign exchange rates, risks related to changing U.S. and foreign trade policies, including increased trade restrictions or tariffs, risks associated with our international operations, cybersecurity and data privacy risks, including litigation resulting therefrom, risks related to political instability, armed hostilities, incidents of terrorism, public health crises or natural disasters, increased product liability and insurance costs, increased warranty exposure, future competition, changes in the supply of, or price for, parts and components, including as a result of inflation and potential supply chain constraints, environmental compliance costs and liabilities, risks and cost associated with litigation, potential write-offs of our substantial intangible assets, and risks associated with obtaining governmental approvals and maintaining regulatory compliance for new and existing products. Important risks may be discussed in current and subsequent filings with the SEC. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.
| Roper Technologies, Inc. | |||||||
| Condensed Consolidated Balance Sheets (unaudited) | |||||||
| (Amounts in millions) | |||||||
| March 31, 2026 | December 31, 2025 | ||||||
| ASSETS: | |||||||
| Cash and cash equivalents | $ | 382.9 | $ | 297.4 | |||
| Accounts receivable, net | 877.3 | 1,001.0 | |||||
| Inventories, net | 144.5 | 141.7 | |||||
| Income taxes receivable | 88.3 | 128.2 | |||||
| Unbilled receivables | 142.7 | 124.0 | |||||
| Prepaid expenses and other current assets | 276.4 | 235.8 | |||||
| Total current assets | 1,912.1 | 1,928.1 | |||||
| Property, plant and equipment, net | 158.2 | 156.9 | |||||
| Goodwill | 21,347.7 | 21,341.2 | |||||
| Other intangible assets, net | 9,559.0 | 9,764.2 | |||||
| Deferred taxes | 70.8 | 73.3 | |||||
| Equity investment | 963.6 | 796.3 | |||||
| Other assets | 539.4 | 517.0 | |||||
| Total assets | $ | 34,550.8 | $ | 34,577.0 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY: | |||||||
| Accounts payable | $ | 184.5 | $ | 150.3 | |||
| Accrued compensation | 226.7 | 293.0 | |||||
| Deferred revenue | 1,792.5 | 1,906.8 | |||||
| Other accrued liabilities | 619.0 | 642.3 | |||||
| Income taxes payable | 39.3 | 28.0 | |||||
| Current portion of long-term debt, net | 715.6 | 705.2 | |||||
| Total current liabilities | 3,577.6 | 3,725.6 | |||||
| Long-term debt, net of current portion | 9,748.4 | 8,595.8 | |||||
| Deferred taxes | 1,915.1 | 1,883.1 | |||||
| Other liabilities | 491.7 | 491.0 | |||||
| Total liabilities | 15,732.8 | 14,695.5 | |||||
| Common stock, 350.0 shares authorized; 109.4 shares issued and 102.4 outstanding at March 31, 2026 and 109.3 shares issued and 106.6 outstanding at December 31, 2025 | 1.1 | 1.1 | |||||
| Additional paid-in capital | 3,334.4 | 3,292.2 | |||||
| Retained earnings | 17,620.2 | 17,205.7 | |||||
| Accumulated other comprehensive loss | (113.7 | ) | (101.4 | ) | |||
| Treasury stock, 7.0 shares at March 31, 2026 and 2.7 shares at December 31, 2025 | (2,024.0 | ) | (516.1 | ) | |||
| Total stockholders’ equity | 18,818.0 | 19,881.5 | |||||
| Total liabilities and stockholders’ equity | $ | 34,550.8 | $ | 34,577.0 | |||
| Roper Technologies, Inc. | ||||||
| Condensed Consolidated Statements of Earnings (unaudited) | ||||||
| (Amounts in millions, except per share data) | ||||||
| Three months ended March 31, | ||||||
| 2026 | 2025 | |||||
| Net revenues | $ | 2,095.3 | $ | 1,882.8 | ||
| Cost of sales | 641.5 | 589.1 | ||||
| Gross profit | 1,453.8 | 1,293.7 | ||||
| Selling, general and administrative expenses | 884.2 | 767.9 | ||||
| Income from operations | 569.6 | 525.8 | ||||
| Interest expense, net | 99.3 | 62.9 | ||||
| Equity investment (gain) loss, net | (167.3 | ) | 44.4 | |||
| Other expense, net | 2.6 | 0.5 | ||||
| Earnings before income taxes | 635.0 | 418.0 | ||||
| Income taxes | 126.1 | 86.9 | ||||
| Net earnings | $ | 508.9 | $ | 331.1 | ||
| Net earnings per share: | ||||||
| Basic | $ | 4.88 | $ | 3.08 | ||
| Diluted | $ | 4.87 | $ | 3.06 | ||
| Weighted average common shares outstanding: | ||||||
| Basic | 104.3 | 107.4 | ||||
| Diluted | 104.6 | 108.2 | ||||
| Roper Technologies, Inc. | |||||||||||
| Selected Segment Financial Data (unaudited) | |||||||||||
| (Amounts in millions; percentages of net revenues) | |||||||||||
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Amount | % | Amount | % | ||||||||
| Net revenues: | |||||||||||
| Application Software | $ | 1,191.5 | $ | 1,068.2 | |||||||
| Network Software | 427.6 | 375.9 | |||||||||
| Technology Enabled Products | 476.2 | 438.7 | |||||||||
| Total | $ | 2,095.3 | $ | 1,882.8 | |||||||
| Gross profit: | |||||||||||
| Application Software | $ | 822.6 | 69.0 | % | $ | 720.8 | 67.5 | % | |||
| Network Software | 360.4 | 84.3 | % | 315.6 | 84.0 | % | |||||
| Technology Enabled Products | 270.8 | 56.9 | % | 257.3 | 58.7 | % | |||||
| Total | $ | 1,453.8 | 69.4 | % | $ | 1,293.7 | 68.7 | % | |||
| Operating profit*: | |||||||||||
| Application Software | $ | 319.2 | 26.8 | % | $ | 276.8 | 25.9 | % | |||
| Network Software | 173.8 | 40.6 | % | 166.7 | 44.3 | % | |||||
| Technology Enabled Products | 154.4 | 32.4 | % | 153.6 | 35.0 | % | |||||
| Total | $ | 647.4 | 30.9 | % | $ | 597.1 | 31.7 | % | |||
| * Segment operating profit is before unallocated corporate general and administrative expenses and enterprise-wide stock-based compensation. These expenses were | |||||||||||
| Roper Technologies, Inc. | |||||||
| Condensed Consolidated Statements of Cash Flows (unaudited) | |||||||
| (Amounts in millions) | |||||||
| Three months ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Cash flows from operating activities: | |||||||
| Net earnings | $ | 508.9 | $ | 331.1 | |||
| Adjustments to reconcile net earnings to cash flows from operating activities: | |||||||
| Depreciation and amortization of property, plant and equipment | 10.0 | 9.1 | |||||
| Amortization of intangible assets | 220.4 | 204.0 | |||||
| Amortization of deferred financing costs | 3.2 | 2.8 | |||||
| Non-cash stock compensation | 52.6 | 38.8 | |||||
| Equity investment (gain) loss, net | (167.3 | ) | 44.4 | ||||
| Income tax provision | 126.1 | 86.9 | |||||
| Changes in operating assets and liabilities, net of acquired businesses: | |||||||
| Accounts receivable | 122.4 | 74.4 | |||||
| Unbilled receivables | (19.1 | ) | (7.6 | ) | |||
| Inventories | (3.3 | ) | (4.1 | ) | |||
| Prepaid expenses and other current assets | (41.6 | ) | (41.3 | ) | |||
| Accounts payable | 34.4 | 2.9 | |||||
| Other accrued liabilities | (94.9 | ) | (107.4 | ) | |||
| Deferred revenue | (117.1 | ) | (70.6 | ) | |||
| Cash income taxes paid | (34.2 | ) | (29.1 | ) | |||
| Other, net | (8.4 | ) | (5.6 | ) | |||
| Cash provided by operating activities | 592.1 | 528.7 | |||||
| Cash flows from (used in) investing activities: | |||||||
| Acquisitions of businesses, net of cash acquired | (27.5 | ) | (124.9 | ) | |||
| Capital expenditures | (14.3 | ) | (9.5 | ) | |||
| Capitalized software expenditures | (15.4 | ) | (12.4 | ) | |||
| Other, net | 1.1 | — | |||||
| Cash used in investing activities | (56.1 | ) | (146.8 | ) | |||
| Cash flows from (used in) financing activities: | |||||||
| Borrowings (payments) under revolving credit facility, net | 1,150.0 | (125.0 | ) | ||||
| Debt issuance costs | (3.9 | ) | — | ||||
| Cash dividends to stockholders | (97.4 | ) | (88.6 | ) | |||
| Repurchases of common stock | (1,500.1 | ) | — | ||||
| Proceeds from (tax withholding payments for) stock-based compensation, net | (10.9 | ) | 42.7 | ||||
| Treasury stock sales under employee stock purchase plan | 7.4 | 7.2 | |||||
| Other, net | 10.2 | (44.1 | ) | ||||
| Cash used in financing activities | (444.7 | ) | (207.8 | ) | |||
| Effect of exchange rate changes on cash | (5.8 | ) | 10.5 | ||||
| Net increase in cash and cash equivalents | 85.5 | 184.6 | |||||
| Cash and cash equivalents, beginning of period | 297.4 | 188.2 | |||||
| Cash and cash equivalents, end of period | $ | 382.9 | $ | 372.8 | |||
