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Roper Technologies, Inc.
NASDAQ: ROP Technology IT 🔎 Screen
S&P 500 Nasdaq 100
$41.6B
Market Cap
31.3
P/E
2.26
PEG
6.4%
ROCE
7.9%
ROE
0.48
D/E
28.3%
OPM
-24.7%
% from 52W High
37
α RS
🔍 ROP is showing a sector-leadership setup because Sector RRG has Technology in the Leading quadrant with the trail still strengthening, it matches 2 of 39 tracked screener presets, and an ECS of 59.1 last quarter. Net: Broad signal stack, not a recommendation. ? RRG Conviction ECS
Sources
Technology in Leading quadrant · Conviction 2/39 · ECS 59.1
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Currency-adjusted total returns for ROP including FX impact
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Ratio Health
Excellent
Good
Average
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By Category
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About

Roper Technologies, Inc. designs and develops vertical software and technology enabled products in the United States, Canada, Europe, Asia, and internationally. Its Application Software segment offers comprehensive management, diagnostic and laboratory information management, enterprise software and information solutions, K-12 school administration, transportation management, financial and compliance management, cloud-based and integrated payment processing, campus technology and payment, and cloud-based financial analytics, performance management software, and data solutions; cloud-based software for the property and casualty insurance industry; and foodservice technologies. The Network Software segment provides cloud-based data, collaboration, and estimating automation software; electronic marketplace; visual effects and 3D content software; cloud-based software and AI-enabled analytics solutions for the life insurance and financial services industries; supply chain software; health care services and software; data analytics and information; pharmacy software solutions; and AI-enabled SaaS providing digital engagement, as well as church management and integrated giving solutions for faith-based organizations. The Technology Enabled Products segment offers ultrasound procedures accessories; dispensers and metering pumps; wireless sensor network and solutions; automated surgical scrub and linen dispensing equipment; water meters; optical and electromagnetic precision measurement systems; RFID card and credential readers; and medical devices. It distributes and sells its products through direct sales offices, manufacturers’ representatives, resellers, and distributors. The company was formerly known as Roper Industries, Inc. and changed its name to Roper Technologies, Inc. in April 2015. Roper Technologies, Inc. was incorporated in 1981 and is based in Sarasota, Florida.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$2.1B
+9% YoY (organic +5%)
Adjusted EBITDA
$815M
+5% YoY
Adjusted EBITDA Margin
38.6%
-130 bps reported; -70 bps core
Adjusted Net Earnings
$542M
+3% YoY
What Went Right
  • Adjusted DEPS of $5.38 beat guidance ($5.25–$5.30) and grew 10% YoY, helped by $0.03 buyback accretion
  • Free cash flow grew 11% to $447M; FCF per share up 19% with TTM FCF at $2.6B
  • Repurchased 3.6M shares for $1.2B in Q2 — cumulative 9M shares/$3.2B, reducing share count 8%+ to 2013 levels
  • AI product velocity accelerated: ~20 agentic/AI releases including Vertafore Velocity (6 agentic SKUs), Deltek, Strata, Aderant, Procare RoomRunner (20% customer engagement in 4 hours)
  • TEP outperformed expectations (Neptune, NDI, Verathon ahead), with NDI strong in cardiac EP and Neptune on track for H2 return to growth
What to Watch
  • Deltek GovCon: signs encouraging but 'too early to call a turn' — need pipeline conversion over several quarters before raising outlook
  • Core EBITDA margin down 70 bps on TEP pressure: Neptune bronze/copper ingot cost inflation and NDI/Verathon mix shift to lower-margin consumables
  • DAT load volumes still need to improve before fully bullish; 2026 benefit modest despite improving carrier adds, spot pricing and rejection rates
  • AI token spend up ~3x annualized since January and expected to rise further; software core margins already down 10 bps on AI investment
  • M&A still not 'broken loose' — management expects market thaw later in 2026/2027 and is prioritizing deleveraging over buybacks near-term
Management Guidance
  • Q3 2026 adjusted DEPS: $5.75–$5.80 (revenue guidance not provided)
  • No explicit operating margin guidance; H2 organic growth expected mid-single-digit-plus at App/Network and high-singles at TEP
  • FY2026 adjusted DEPS raised to $22.15–$22.30 (from $21.80–$22.05); total revenue growth >8% (from ~8%); organic ~6% (from +5–6%); H2 tax rate ~21%
Investor Lens
The thesis is stronger after this call. Management beat its own guidance, raised full-year DEPS for the second time this year (now +$0.80 above the original January guide) and tightened confidence on organic growth (~6%). The AI story shifted from demos to shipped SKUs with demonstrable ROIs (e.g., SoftWriters cutting order entry from 90 to 18 seconds), widening the addressable market beyond software into labor spend. Capital allocation is disciplined — $3.2B buyback plus ~$1.2B Indicor proceeds — with leverage at 3.4x net debt/EBITDA and >$5B annualized capacity primed for M&A. Key uncertainties remain Deltek GovCon, DAT's freight recovery pace, and TEP margin compression, but none derail the compounding story. Net-net, the risk/reward is better than 90 days ago.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong beat-and-raise: DEPS $5.38, FY outlook up $0.30
Revenue
Revenue was $2.109B, up 9% YoY (organic +5%, M&A +3%), ahead of expectations. Application software grew 8% total/5% organic, network software 12% total/4% organic (Subsplash lifted total), and TEP grew 7% organically. Organic recurring software revenue was +7%, with an inflection expected in H2.
Profitability
Adjusted DEPS was $5.38, +10% YoY and above the $5.25–$5.30 guidance. Adjusted net earnings rose 3% to $542M, while GAAP net earnings of $1,168M were inflated by an $835M favorable Indicor fair-value adjustment. Adjusted EBITDA grew 5% to $815M.
Margins
Adjusted EBITDA margin was 38.6%, down 130 bps reported / 70 bps core, driven by TEP input-cost inflation at Neptune (bronze/copper ingot) and mix shift to lower-margin consumables at NDI/Verathon. Software core margins were down only 10 bps despite AI investment; network core margins improved 30 bps.
Balance Sheet
Balance sheet remains well-positioned: $365M cash, $2.9B drawn on revolver, net debt/EBITDA 3.4x (up from 3.1x). Free cash flow was $447M, up 11% YoY. Q2 buybacks totaled $1.2B; Indicor instrumentation proceeds (~$1.2B after-tax) expected in H2, supporting >$5B annualized capital deployment capacity.
Key Risks
Management flagged Deltek GovCon recovery as unconfirmed despite encouraging pipeline signs, and DAT needs load volumes to improve before turning fully bullish. AI monetization pace is the biggest unknown — agentic products are unlikely to be material revenue in H2 2026. TEP copper/input-cost pressure is expected to ease in H2 but remains a watch item.
Outlook
Q3 2026 adjusted DEPS guided to $5.75–$5.80. Full-year DEPS raised to $22.15–$22.30, total revenue growth >8%, and organic growth ~6%, with guidance excluding Indicor proceeds and future share repurchases.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-23
Q2 results exceeded expectations with 9% revenue growth and strong free cash flow. Full-year guidance for DEPS and revenue was raised, driven by robust AI product momentum and disciplined capital allocation. Share repurchases and upcoming Indicor proceeds further strengthen financial flexibility.
Q1 2026 Q1 2026 2026-04-23
Q1 2026 results exceeded expectations with 11% revenue growth and strong free cash flow, prompting a $0.50 increase in full-year DEPS guidance. AI innovation and SaaS transitions accelerated across segments, while significant capital was deployed for share repurchases and M&A flexibility.
Q4 2025 Q4 2025 2026-01-27
Delivered double-digit revenue and EBITDA growth in 2025, with strong cash flow and disciplined capital deployment. 2026 guidance calls for 8% revenue growth and 5%-6% organic growth, with upside potential from AI and recent acquisitions.
Q3 2025 Q3 2025 2025-10-23
Q3 saw 14% revenue growth and 17% free cash flow growth, with strong AI-driven momentum and a $3B share repurchase authorization. Guidance was tightened due to government shutdown and tariff impacts, but capital deployment and M&A capacity remain robust.
Q2 2025 Q2 2025 2025-07-21
Q2 2025 saw 13% revenue growth, strong software bookings, and robust free cash flow. Guidance was raised following the Subsplash acquisition, which is expected to enhance growth and margins. Over $5B in M&A capacity remains, with AI innovation and resilient end markets supporting future performance.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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