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Roper Q2 Earnings Top Estimates, Application Software Sales Up Y/Y
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Key Takeaways
Roper topped Q2 earnings and revenue estimates as Application Software delivered solid organic growth.
ROP benefited from acquisitions and strength across software and technology-enabled product businesses.
Roper raised its 2026 earnings outlook and expects revenue growth above 8% with about 6% organic growth.
Roper Technologies’ (ROP - Free Report) 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’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’ 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 - Free Report) 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 - Free Report) 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%.
View the Zacks #1 Rank List
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Roper Q2 Earnings Top Estimates, Application Software Sales Up Y/Y
Key Takeaways
Roper Technologies’ (ROP - Free Report) 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 - Free Report) 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 - Free Report) 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 - Free Report) 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%.