Roper TechnologiesSecond-quarter 2026 adjusted ROP earnings of $5.38 per share beat the Zacks Consensus Estimate of $5.29. The bottom line increased 10% year over year.
Roper’s net sales of $2.11 billion beat the consensus estimate of $2.10 billion. Sales rose 9% year over year. Organic revenue increased 5%, driven by solid momentum in the application software segment. Acquisitions increased sales by 3%.
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Roper’s second quarter segment performance
The company reports in three segments: application software, network software and technology-based products.
Application Software revenue was $1.18 billion, representing 56% of quarterly revenue. The metric was almost in line with the Zacks Consensus Estimate. The segment’s revenue increased 8% year-over-year. Organic sales increased by 5%. Acquisitions increased sales by 3%. Solid momentum in the Aderant, Deltek, Vertafore and CentralReach businesses boosted the segment’s performance.
Network Software & Systems generated revenue of $430.9 million, representing 20.4% of quarterly revenue. The Zacks Consensus Estimate for the segment’s revenue has been pegged at $437 million. Segment revenue increased 12% year over year. Organic sales increased by 4%. Acquisitions increased sales by 8%. Strong momentum in the ConstructConnect, Foundry and DAT businesses supported the segment’s performance.
The Technology Enabled Products segment generated revenue of $497.2 million, accounting for 23.6% of the quarter’s revenue. The Zacks Consensus Estimate for the segment’s revenue has been pegged at $475 million. Sales increased 7% year over year. Organic sales increased by 7%. Strong performance from the Verathon and NDI businesses contributed to the segment’s top line performance.
Roper Technologies, Inc. Price, Consensus and EPS Surprise
Roper Technologies, Inc. Price, Consensus and EPS Surprise
Roper Technologies, Inc. Price Consensus EPS Surprise Chart | Quote from Roper Technologies, Inc
ROP’s margin profile
Roper’s cost of sales increased 6.8% year-over-year to $638.7 million. Gross profit rose 9.3% to about $1.47 billion, while gross margin rose 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, representing growth of 5% year-over-year. The margin decreased by 130 basis points to 38.6%. Interest expense (net) increased 40.8% year over year to $111.4 million.
Roper’s balance sheet and cash flow
At the end of the second quarter of 2026, Roper had cash and cash equivalents of $364.9 million, compared to $297.4 million at the end of December 2025. Long-term debt (net of the current portion) was $10.60 billion, compared to $8.60 billion at the end of 2025.
Roper generated net cash from operating activities of $1.06 billion in the first six months of 2026, an increase of 13.8% from year-ago levels. Capital expenditures totaled $25.3 million, compared to $26 million in the same period last year.
During the same period, ROP rewarded shareholders with a dividend payment of $191.4 million, an increase of 8% year over year. Shares worth $3.2 billion were bought back.
Roper’s outlook
For 2026, Roper expects adjusted earnings per share from continuing operations to be in the range of $22.15 to $22.30, compared to previously forecast $21.80 to $22.05. Total sales are expected to increase by more than 8%. Organic sales are expected to increase by approximately 6% compared to last year.
For the third quarter of 2026, Roper expects adjusted earnings in the range of $5.75 to $5.80 per share.
ROP’s Zacks Rank and Other Stocks to Consider
The company currently has a Zacks Rank #2 (Buy). Some other top-ranked stocks are discussed below:
Amdocs DOX currently has a Zacks Rank of 2. You can see You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amdocs’ earnings beat consensus estimates in each of the last four quarters. The average earnings surprise was 1.3%. Over the past 60 days, the Zacks Consensus Estimate for DOX’s fiscal 2026 bottom line has been stable.
CoStar Group CSGP currently has a Zacks Rank of 2. CoStar Group’s earnings beat consensus estimates in each of the last four quarters. The average earnings surprise was 23%. Over the past 60 days, the Zacks Consensus Estimate for CSGP’s 2026 earnings has been stable.
Nutanix NTNX currently has a Zacks Rank of 2. Nutanix’s earnings beat consensus estimates in each of the last four quarters. The average earnings surprise was 19.3%. Over the past 60 days, the Zacks Consensus Estimate for NTNX’s fiscal 2026 earnings has increased 5.5%.
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This article was originally published on Zacks Investment Research (zacks.com).
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