third quarter 2026
Filed Oct 22, 2026Roper Technologies announces third quarter financial results Increases full year DEPS guidance
Revenue increased 8%, including 7% organic growth, while adjusted EBITDA increased 7% and adjusted DEPS increased 15%. The company raised full-year adjusted DEPS guidance to $22.35 - $22.40 from $22.15 - $22.30, although adjusted EBITDA margin declined 40 bps to 39.8%.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 GAAP revenueGAAP | $2.17B | – | 8 % |
| Q3 2026 organic revenue growthother | 7 % | – | 7 % |
| Q3 2026 acquisition contribution to revenue growthother | 1 % | – | 1 % |
| Q3 2026 foreign exchange contribution to revenue growthother | — % | – | — % |
| Q3 2026 GAAP net earningsGAAP | $485M | – | 22 % |
| Q3 2026 adjusted net earningsnon-GAAP | $586M | – | 5 % |
| Q3 2026 adjusted EBITDAnon-GAAP | $864M | – | 7 % |
| Q3 2026 adjusted EBITDA marginnon-GAAP | 39.8 % | – | (40 bps) |
| Q3 2026 GAAP DEPSGAAP | $ 4.88 | – | 33 % |
| Q3 2026 adjusted DEPSnon-GAAP | $ 5.89 | – | 15 % |
| Q3 2026 net revenuesGAAP | $2.17B | – | – |
| Q3 2026 cost of salesGAAP | 649.2 | – | – |
| Q3 2026 gross profitGAAP | 1,522.6 | – | – |
| Q3 2026 selling, general and administrative expensesGAAP | 899.4 | – | – |
| Q3 2026 income from operationsGAAP | 623.2 | – | – |
| Q3 2026 interest expense, netGAAP | 106.7 | – | – |
| Q3 2026 equity investment (gain) loss, netGAAP | (56.2) | – | – |
| Q3 2026 other (income) expense, netGAAP | 0.6 | – | – |
| Q3 2026 earnings before income taxesGAAP | 572.1 | – | – |
| Q3 2026 income taxesGAAP | 87.4 | – | – |
| Q3 2026 net earningsGAAP | $484.7M | – | – |
| Q3 2026 basic earnings per shareGAAP | $ 4.90 | – | – |
| Q3 2026 diluted earnings per shareGAAP | $ 4.88 | – | – |
| Q3 2026 weighted average common shares outstanding, basicGAAP | 98.9 | – | – |
| Q3 2026 weighted average common shares outstanding, dilutedGAAP | 99.4 | – | – |
| Nine months ended September 30, 2026 net revenuesGAAP | $6.38B | – | – |
| Nine months ended September 30, 2026 gross profitGAAP | 4,446.6 | – | – |
| Nine months ended September 30, 2026 income from operationsGAAP | 1,777.5 | – | – |
| Nine months ended September 30, 2026 net earningsGAAP | $2.16B | – | – |
| Nine months ended September 30, 2026 diluted earnings per shareGAAP | $ 21.30 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Application Software, Q3 2026No segment revenue driver was provided. | $1.24B | – | – |
| Network Software, Q3 2026No segment revenue driver was provided. | 446.1M | – | – |
| Technology Enabled Products, Q3 2026No segment revenue driver was provided. | 486M | – | – |
| Application Software, nine months ended September 30, 2026No segment revenue driver was provided. | $3.61B | – | – |
| Network Software, nine months ended September 30, 2026No segment revenue driver was provided. | 1.30B | – | – |
| Technology Enabled Products, nine months ended September 30, 2026No segment revenue driver was provided. | 1.46B | – | – |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Q4 2026 and FY 2026 outlook
- NoteQ4 2026 adjusted DEPS: $ 5.95 - $ 6.00
- NoteFY 2026 adjusted DEPS: $ 22.35 - $ 22.40
- NoteQ4 2026 GAAP DEPS: $ 4.27 - $ 4.32
- NoteFY 2026 GAAP DEPS: $ 25.60 - $ 25.65
- NoteFY 2026 transaction-related expenses for completed acquisitions: 0.05 - 0.05
- NoteFY 2026 financial impacts associated with the minority investment in Indicor: (9.86) - (9.86)
- NoteFY 2026 amortization of acquisition-related intangible assets: 6.56 - 6.56
Capital returns
- Repurchases of common stock for the nine months ended September 30, 2026: (2,726.7)
- Cash dividends to stockholders for the nine months ended September 30, 2026: (281.4)
- The Company stated it deployed $436 million toward three bolt-on acquisitions for its iPipeline, Procare, and Strata businesses.
What drove it
- Revenue increased 8% to $2.17 billion, with organic revenue of +7% and acquisition contribution of +1%.
- The company stated that businesses brought several AI launches to market, highlighted by PowerPlan, Strata, and Vertafore.
- The company received $1.2 billion in proceeds from Indicor's sale of its instrumentation businesses.
- Financial impacts associated with minority investments were (56) in the Q3 adjusted EBITDA reconciliation and (71) in the Q3 adjusted net earnings reconciliation.
Concerns
- Adjusted EBITDA margin was 39.8 %, compared with 40.2 % in Q3 2025, a decline of (40 bps).
- Interest expense, net was 106.7 in Q3 2026, compared with 89.7 in Q3 2025.
- Current portion of long-term debt, net was 1,415.1 at September 30, 2026, compared with 705.2 at December 31, 2025.
- Forecasted results do not include any future impacts associated with the minority investment in Indicor, as these future impacts cannot be reasonably predicted.
What to watch
- Q4 2026 adjusted DEPS guidance of $ 5.95 - $ 6.00.
- FY 2026 adjusted DEPS guidance of $ 22.35 - $ 22.40.
- The pending divestiture of Indicor's Cornell Pump and Roper Pump businesses.
- Capital allocation from more than $6 billion of capital deployment capacity.
- Adoption and scaling of AI solutions launched by PowerPlan, Strata, and Vertafore.
Balance sheet and cash flow
- Cash and cash equivalents at September 30, 2026: $ 311.0; December 31, 2025: $ 297.4
- Total assets at September 30, 2026: $ 34,338.3; December 31, 2025: $ 34,577.0
- Current portion of long-term debt, net at September 30, 2026: 1,415.1; December 31, 2025: 705.2
- Long-term debt, net of current portion at September 30, 2026: 8,304.6; December 31, 2025: 8,595.8
- Total liabilities at September 30, 2026: 15,165.7; December 31, 2025: 14,695.5
- Total stockholders’ equity at September 30, 2026: 19,172.6; December 31, 2025: 19,881.5
- Cash provided by operating activities for the nine months ended September 30, 2026: 1,882.2; 2025: 1,802.3
- Acquisitions of businesses, net of cash acquired for the nine months ended September 30, 2026: (463.2); 2025: (3,280.4)
- Capital expenditures for the nine months ended September 30, 2026: (35.4); 2025: (37.6)
- Capitalized software expenditures for the nine months ended September 30, 2026: (46.8); 2025: (42.8)
- Proceeds from Indicor transaction for the nine months ended September 30, 2026: 1,239.2; 2025: —
- Cash provided by investing activities for the nine months ended September 30, 2026: 716.0; 2025: (3,354.0)
- Cash used in financing activities for the nine months ended September 30, 2026: (2,570.9); 2025: 1,654.3
- Net increase in cash and cash equivalents for the nine months ended September 30, 2026: 13.6; 2025: 131.8
- Cash and cash equivalents, end of period: $ 311.0; 2025: $ 320.0
Analysis
Roper reported an 8% increase in Q3 revenue to $2.17 billion, consisting of 7% organic revenue growth and a 1% acquisition contribution. GAAP net earnings increased 22% to $485 million, while adjusted net earnings increased 5% to $586 million. GAAP DEPS increased 33% to $4.88 and adjusted DEPS increased 15% to $5.89.
The quarter showed positive growth across all three reported operating segments. Application Software revenue was $1,239.7, Network Software revenue was 446.1, and Technology Enabled Products revenue was 486.0. Segment operating profit was $357.6 for Application Software, 189.6 for Network Software, and 160.7 for Technology Enabled Products. Total segment operating profit was $707.9, while unallocated corporate general and administrative expenses and enterprise-wide stock-based compensation were $84.7.
Profitability expanded in dollar terms but adjusted EBITDA margin declined. Adjusted EBITDA increased 7% to $864 million, while adjusted EBITDA margin was 39.8 %, compared with 40.2 % in Q3 2025. The quarter also included a (56) financial impact associated with minority investments in the adjusted EBITDA reconciliation and a (71) impact in the adjusted net earnings reconciliation. GAAP net earnings included equity investment (gain) loss, net of (56.2), compared with (12.9) in the prior-year quarter.
Cash provided by operating activities was 1,882.2 for the nine months ended September 30, 2026, compared with 1,802.3 in 2025. Roper spent (2,726.7) on common-stock repurchases and (281.4) on cash dividends during the nine-month period. It also received 1,239.2 in proceeds from the Indicor transaction and reported cash and cash equivalents of $ 311.0 at September 30, 2026.
Management raised FY 2026 adjusted DEPS guidance to $22.35 - $22.40 from previous guidance of $22.15 - $22.30, and introduced Q4 adjusted DEPS guidance of $5.95 - $6.00. Guidance excludes the impact of unannounced future acquisitions or divestitures, proceeds from Indicor's pending divestiture of its Cornell Pump and Roper Pump businesses, and potential share repurchases. The guide also excludes future impacts associated with Roper's minority investment in Indicor because those impacts cannot be reasonably predicted.
Management, verbatim
Roper delivered another solid quarter, with 8% total revenue growth, 7% organic revenue growth, 7% EBITDA growth, and 15% adjusted DEPS growth. During the quarter, we deployed $436 million toward three bolt-on acquisitions for our iPipeline, Procare, and Strata businesses, and we received $1.2 billion in proceeds from Indicor's sale of its instrumentation businesses.
Neil Hunn, President and CEO
This quarter, our businesses again brought several AI launches to market, highlighted by PowerPlan, Strata, and Vertafore. We are embedding agentic solutions directly into the workflows our customers rely on every day, and we are also evolving how we build, with smaller teams closer to customers and increasingly agentic development processes.
Neil Hunn, President and CEO
Driven by third quarter adjusted DEPS that exceeded our expectations, we are raising our full year adjusted DEPS guidance. With more than $6 billion of capital deployment capacity, we will continue allocating capital with discipline to drive free cash flow per share compounding for our shareholders.
Neil Hunn, President and CEO
Not in the filing
stated, not guessed- Prior-quarter comparisons for Q3 2026 metrics were not provided.
- Q3 2026 GAAP gross margin was not provided as a consolidated metric.
- Free cash flow was not provided.
- Q4 2026 and FY 2026 revenue guidance was not provided.
- Q4 2026 and FY 2026 gross-margin guidance was not provided.
- Q4 2026 and FY 2026 operating-expense guidance was not provided.
- Q4 2026 and FY 2026 tax-rate guidance was not provided.
- A previous outlook document was not provided for comparison with actual results.
- Segment revenue growth rates were not provided by segment.
- Q3 2026 segment revenue drivers were not provided by segment.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.