01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
Roper Technologies, Inc. reported first-quarter 2026 net revenues of $2.095 billiona, up from $1.883 billion in the prior-year quarter, with organic revenue growth of 5.6% as stated in the filing.
Net earnings rose to $508.9 millionb from $331.1 million, helped by a $167.3 million gain on the company's equity investment in Indicor, compared with a $44.4 million loss a year earlier. Income from operations was $569.6 million versus $525.8 million, and diluted EPS was $4.87 versus $3.06. Segment operating margins declined in Network Software (40.6% vs. 44.3%) and Technology Enabled Products (32.4% vs. 35.0%), while Application Software improved to 26.8% from 25.9%.
Capital allocation and leverage were the main balance-sheet developments. Roper repurchased $1.50 billionc of common stock in the quarter and, in April 2026, repurchased a further $528.4 million; the Board added $3.0 billion of authorization in April, leaving $3.47 billion available as of April 30, 2026. Total debt, net of deferred financing costs, rose to $10.46 billion from $9.30 billion, mainly from $1.15 billion of net revolver borrowings, and net debt divided by total net capital increased to 34.9% from 31.2%.
On March 30, 2026, the company entered into a new five-year $3.5 billiond unsecured revolving credit facility that replaced its prior facility. Operating cash flow was $592.1 million, up from $528.7 million.
Backlog (remaining performance obligations expected within 12 months) was $3.39 billion, up 11.8% from $3.03 billion a year earlier, and total remaining performance obligations were $5.28 billion. Management reported no material changes to risk factors and no changes in internal control over financial reporting.
02—Key points
Key Highlights
- Net revenues of $2,095.3 million, up from $1,882.8 million; organic revenue growth of 5.6% as stated in the filing.
- Net earnings of $508.9 million versus $331.1 million, including a $167.3 million gain on the Indicor equity investment (versus a $44.4 million loss in Q1 2025).
- Diluted EPS of $4.87 compared with $3.06 in the prior-year quarter.
- Share repurchases of $1,500.1 million in Q1 2026, plus $528.4 million repurchased from April 1 to April 30, 2026; an additional $3.0 billion authorization approved in April 2026.
- Total debt, net of deferred financing costs, of $10,464.0 million at March 31, 2026, up from $9,301.0 million at December 31, 2025, mainly from $1,150.0 million of net revolver borrowings; net debt/total net capital of 34.9% versus 31.2%.
- Backlog of $3,392.1 million, up 11.8% year over year, with total remaining performance obligations of $5,284.5 million.
- Segment operating margin declines in Network Software (40.6% from 44.3%) and Technology Enabled Products (32.4% from 35.0%), partly offset by improvement in Application Software (26.8% from 25.9%).
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Roper Technologies kept $0.24.
- Revenue$2.10B100.0%
- Cost of revenue−$641.5M30.6%
- Gross profit$1.45B69.4%
- Operating costs−$884.2M42.2%
- Operating income$569.6M27.2%
- Interest, other & tax−$60.7M2.9%
- Net income$508.9M24.3%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 1, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $2.10B$1.88B | +11.3% |
| Cost of Revenue | $641.50M$589.10M | +8.9% |
| Gross Profit | $1.45B$1.29B | +12.4% |
| SG&A Expenses | $884.20M$767.90M | +15.1% |
| Operating Income | $569.60M$525.80M | +8.3% |
| Net Income | $508.90M$331.10M | +53.7% |
| EPS (Basic) | $4.88$3.08 | +58.4% |
| EPS (Diluted) | $4.87$3.06 | +59.2% |
| Shares Outstanding (Basic) | 104.30M107.40M | −2.9% |
| Shares Outstanding (Diluted) | 104.60M108.20M | −3.3% |
05—Questions
Frequently Asked Questions
What drove the large increase in net earnings this quarter?
Net earnings rose to $508.9 million from $331.1 million, largely due to an equity investment gain of $167.3 million tied to the increase in fair value of the company's Indicor investment, compared with a $44.4 million loss in the first quarter of 2025. Income from operations also increased to $569.6 million from $525.8 million.
How did the company use its cash and what happened to its debt?
Roper repurchased $1,500.1 million of common stock and paid $97.4 million in dividends during the quarter. Total debt, net of deferred financing costs, increased to $10,464.0 million from $9,301.0 million, primarily due to $1,150.0 million of net borrowings under the unsecured revolving credit facility. Net interest expense rose to $99.3 million from $62.9 million, citing higher average debt balances and a higher weighted-average interest rate on senior notes.
What is the status of the company's credit facility?
On March 30, 2026, Roper entered into a new five-year unsecured credit facility that replaced its previous $3,500.0 million facility dated July 21, 2022. The new facility comprises a five-year $3,500.0 million unsecured revolving credit facility with up to $150.0 million available for letters of credit, and it requires a Total Debt to Total Capital Ratio of 0.65 to 1.00 or less. At March 31, 2026, $2,000.0 million was outstanding under the revolver.
Which segments drove revenue growth and where did margins weaken?
Application Software revenue grew 11.5% to $1,191.5 million, led by 2025 acquisitions, most notably CentralReach. Network Software grew 13.8% to $427.6 million, led by acquisitions including Subsplash. Technology Enabled Products grew 8.5% to $476.2 million. Operating margins fell in Network Software to 40.6% from 44.3%, mainly due to higher amortization of acquired intangibles and 2025 acquisition SG&A profiles, and in Technology Enabled Products to 32.4% from 35.0%, due to revenue mix and input cost pressures at the water meter technology business.
What does the company's outlook say about future cash flow and acquisitions?
Management believes internally generated cash flows and remaining availability under its unsecured credit facility will be adequate to finance normal operating requirements, and it anticipates that its businesses will generate positive operating cash flows that will permit debt reduction under the repayment schedule. The filing states that the pace of debt reduction will depend on acquisition financing needs, share repurchase allocation, and economic conditions. It also notes the company maintains an active acquisition program, though the timing and impact of future acquisitions cannot be reasonably estimated.
06—Continue