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Roper Q1 Earnings Surpass Estimates, Application Software Sales Up Y/Y
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Key Takeaways
Roper posted Q1 EPS of $5.16, up 8% YoY, with revenues rising 11% to $2.10B.
ROP's Application Software sales climbed 11.5%, led by Aderant, Vertafore and CentralReach.
Margin slipped 120 bps, but Roper raised 2026 EPS outlook to $21.80-$22.05.
Roper Technologies’ (ROP - Free Report) first-quarter 2026 adjusted earnings of $5.16 per share surpassed the Zacks Consensus Estimate of $4.97. The bottom line increased 8% on a year-over-year basis.
Roper’s net revenues of $2.10 billion beat the consensus estimate of $2.05 billion. The top line increased 11% year over year. Organic revenues grew 6%, driven by solid momentum in the Application Software segment. Acquisitions boosted sales by 5%.
Roper’s Segmental Performance in Q1
The company reports under three segments, namely Application Software, Network Software and Technology Enabled Products.
Application Software’s revenues totaled $1.19 billion, representing 56.9% of the quarter’s top line. The Zacks Consensus Estimate for the segment’s revenues was pegged at $1.17 billion. The segment’s revenues increased 11.5% on a year-over-year basis. Organic revenues increased 5%. Acquisitions boosted sales by 6%. Solid momentum in the company’s Aderant, Vertafore and CentralReach businesses augmented the segment’s performance.
Network Software & Systems generated revenues of $427.6 million, accounting for 20.4% of the quarterly top line. The metric came in line with the Zacks Consensus Estimate. Segmental revenues grew 13.8% year over year. Organic revenues increased 5%. Acquisitions boosted sales by 8%. Strong momentum in the ConstructConnect and DAT businesses supported the segment’s performance. Also, recovery in the Foundry business augmented the results.
The Technology Enabled Products segment generated revenues of $476.2 million, accounting for 22.7% of the quarter’s top line. The Zacks Consensus Estimate for the segment’s revenues was pegged at $457 million. Sales were up 8.5% year over year. Organic revenues grew 7%. Acquisitions boosted sales by 1%. 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’s cost of sales increased 8.9% year over year to $641.5 million. Gross profit increased 12.4% to about $1.45 billion, while the gross margin increased to 69.4% from 68.7% in the year-ago quarter.
Selling, general and administrative expenses increased 15.1% year over year to $884.2 million. Adjusted EBITDA was $797 million, reflecting year-over-year growth of 8%. The margin decreased 120 basis points to 38.1%. Interest expenses (net) increased 57.9% year over year to $99.3 million.
Balance Sheet & Cash Flow of Roper
Exiting the first quarter of 2026, Roper had cash and cash equivalents of $382.9 million compared with $372.8 million at the end of December 2025. Long-term debt (net of current portion) was $9.75 billion compared with $8.60 billion at the end of 2025.
Roper generated net cash of $592.1 million from operating activities in the first three months of 2026, reflecting an increase of 11.9% from the year-ago level. Capital expenditure totaled $14.3 million compared with $9.5 million in the year-ago period.
In the same period, ROP rewarded its shareholders with a dividend payment of $97.4 million, up 9.9% year over year.
Roper’s Outlook
For 2026, Roper expects adjusted earnings per share from continuing operations to be in the range of $21.80-$22.05 compared with $21.30-$21.55 projected earlier. Total revenues are expected to increase approximately 8%. Organic revenues are anticipated to increase 5-6% from the year-ago number.
For the second quarter of 2026, Roper anticipates adjusted earnings to be in the band of $5.25-$5.30 per share.
ROP’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks are discussed below:
DXP Enterprises’ earnings surpassed the consensus estimate by 52.8% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for DXPE’s 2026 earnings has increased by 17.2%.
Nordson Corporation (NDSN - Free Report) currently carries a Zacks Rank of 2 (Buy). Nordson’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 2.5%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 1.8%.
RBC Bearings (RBC - Free Report) presently carries a Zacks Rank of 2. RBC Bearings’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 5.3%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ fiscal 2026 earnings has inched down 0.3%.
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Roper Q1 Earnings Surpass Estimates, Application Software Sales Up Y/Y
Key Takeaways
Roper Technologies’ (ROP - Free Report) first-quarter 2026 adjusted earnings of $5.16 per share surpassed the Zacks Consensus Estimate of $4.97. The bottom line increased 8% on a year-over-year basis.
Roper’s net revenues of $2.10 billion beat the consensus estimate of $2.05 billion. The top line increased 11% year over year. Organic revenues grew 6%, driven by solid momentum in the Application Software segment. Acquisitions boosted sales by 5%.
Roper’s Segmental Performance in Q1
The company reports under three segments, namely Application Software, Network Software and Technology Enabled Products.
Application Software’s revenues totaled $1.19 billion, representing 56.9% of the quarter’s top line. The Zacks Consensus Estimate for the segment’s revenues was pegged at $1.17 billion. The segment’s revenues increased 11.5% on a year-over-year basis. Organic revenues increased 5%. Acquisitions boosted sales by 6%. Solid momentum in the company’s Aderant, Vertafore and CentralReach businesses augmented the segment’s performance.
Network Software & Systems generated revenues of $427.6 million, accounting for 20.4% of the quarterly top line. The metric came in line with the Zacks Consensus Estimate. Segmental revenues grew 13.8% year over year. Organic revenues increased 5%. Acquisitions boosted sales by 8%. Strong momentum in the ConstructConnect and DAT businesses supported the segment’s performance. Also, recovery in the Foundry business augmented the results.
The Technology Enabled Products segment generated revenues of $476.2 million, accounting for 22.7% of the quarter’s top line. The Zacks Consensus Estimate for the segment’s revenues was pegged at $457 million. Sales were up 8.5% year over year. Organic revenues grew 7%. Acquisitions boosted sales by 1%. 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 8.9% year over year to $641.5 million. Gross profit increased 12.4% to about $1.45 billion, while the gross margin increased to 69.4% from 68.7% in the year-ago quarter.
Selling, general and administrative expenses increased 15.1% year over year to $884.2 million. Adjusted EBITDA was $797 million, reflecting year-over-year growth of 8%. The margin decreased 120 basis points to 38.1%. Interest expenses (net) increased 57.9% year over year to $99.3 million.
Balance Sheet & Cash Flow of Roper
Exiting the first quarter of 2026, Roper had cash and cash equivalents of $382.9 million compared with $372.8 million at the end of December 2025. Long-term debt (net of current portion) was $9.75 billion compared with $8.60 billion at the end of 2025.
Roper generated net cash of $592.1 million from operating activities in the first three months of 2026, reflecting an increase of 11.9% from the year-ago level. Capital expenditure totaled $14.3 million compared with $9.5 million in the year-ago period.
In the same period, ROP rewarded its shareholders with a dividend payment of $97.4 million, up 9.9% year over year.
Roper’s Outlook
For 2026, Roper expects adjusted earnings per share from continuing operations to be in the range of $21.80-$22.05 compared with $21.30-$21.55 projected earlier. Total revenues are expected to increase approximately 8%. Organic revenues are anticipated to increase 5-6% from the year-ago number.
For the second quarter of 2026, Roper anticipates adjusted earnings to be in the band of $5.25-$5.30 per share.
ROP’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks are discussed below:
DXP Enterprises (DXPE - Free Report) presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DXP Enterprises’ earnings surpassed the consensus estimate by 52.8% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for DXPE’s 2026 earnings has increased by 17.2%.
Nordson Corporation (NDSN - Free Report) currently carries a Zacks Rank of 2 (Buy). Nordson’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 2.5%. In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 earnings has increased 1.8%.
RBC Bearings (RBC - Free Report) presently carries a Zacks Rank of 2. RBC Bearings’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 5.3%. In the past 60 days, the Zacks Consensus Estimate for RBC Bearings’ fiscal 2026 earnings has inched down 0.3%.