01—Abstract
Summary
Summary of the 10-Q filed July 31, 2026. Cited figures are marked; the original filing is the authoritative source.
Roper Technologies, Inc. reported second-quarter 2026 net revenues of $2,108.9 milliona, up from $1,943.6 million in the second quarter of 2025, and net earnings of $1,168.5 million versus $378.3 million a year earlier.
The results were driven largely by a non-operating gain: equity investment activity was a gain of $835.2 millionb in the quarter, primarily from an $828.6 million increase in the fair value of the company's Indicor equity investment, reflecting updated valuation assumptions made in anticipation of Indicor's planned divestiture of its instrumentation businesses. Income from operations rose to $584.7 million from $548.3 million. Diluted earnings per share were $11.62 for the quarter versus $3.49 a year earlier.
Organic revenue growth was 4.9% for the quarter, with acquisitions contributing 3.4 points. Operating results were steady across segments. Application Software revenue grew 7.8% to $1,180.8 millionc, Network Software grew 11.8% to $430.9 million, and Technology Enabled Products grew 7.3% to $497.2 million.
Backlog rose 11.0% to $3,286.0 milliond. Operating margin in Network Software declined to 41.0% from 43.9%, mainly due to acquisition-related amortization. Six-month operating cash flow was $1,061.6 million, up from $932.8 million.
Capital allocation and leverage shifted meaningfully. The company repurchased 7.865 million shares for $2,724.1 million in the first half of 2026, and $2,775.9 million remained under the repurchase authorization at June 30, 2026. Total debt, net of deferred financing costs, rose to $11,319.4 million from $9,301.0 million at year-end 2025, largely from $2,000.0 million of net revolving credit facility borrowings.
Net debt to total net capital was 36.9%, up from 31.2%. The company also entered a new five-year $3,500.0 million unsecured credit facility on March 30, 2026. Management expects the planned Indicor Instrumentation sale to AMETEK, Inc. for an enterprise value of about $5.0 billion, which is expected to close in the second half of 2026, to bring pre-tax cash proceeds of approximately $1.3 billion to Roper.
02—Key points
Key Highlights
- Net earnings were $1,168.5 million in Q2 2026 versus $378.3 million in Q2 2025, driven mainly by an $835.2 million equity investment gain tied to the Indicor investment.
- Net revenues grew to $2,108.9 million (up 8.5%), with organic revenue growth of 4.9% in the quarter.
- Backlog increased 11.0% to $3,286.0 million at June 30, 2026, supported by acquisitions and organic growth in the software segments.
- Interest expense, net rose to $111.4 million in Q2 2026 from $79.1 million, reflecting higher average debt balances and a higher weighted-average interest rate on senior notes.
- Total debt, net of deferred financing costs, increased to $11,319.4 million from $9,301.0 million at December 31, 2025, and net debt to total net capital rose to 36.9% from 31.2%.
- The company repurchased $2,724.1 million of common stock in the first half of 2026 and had $2,775.9 million of repurchase authorization remaining at June 30, 2026.
- Indicor Instrumentation divestiture to AMETEK, Inc. (enterprise value of approximately $5.0 billion) is expected to close in the second half of 2026, with pre-tax cash proceeds to Roper of approximately $1.3 billion.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Roper Technologies kept $0.55.
- Revenue$2.11B100.0%
- Cost of revenue−$638.7M30.3%
- Gross profit$1.47B69.7%
- Operating costs−$885.5M42.0%
- Operating income$584.7M27.7%
- Interest, other & tax$583.8M27.7%
- Net income$1.17B55.4%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 31, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $2.11B$1.94B | +8.5% |
| Cost of Revenue | $638.70M$598.20M | +6.8% |
| Gross Profit | $1.47B$1.35B | +9.3% |
| SG&A Expenses | $885.50M$797.10M | +11.1% |
| Operating Income | $584.70M$548.30M | +6.6% |
| Net Income | $1.17B$378.30M | +208.9% |
| EPS (Basic) | $11.64$3.52 | +230.7% |
| EPS (Diluted) | $11.62$3.49 | +233.0% |
| Shares Outstanding (Basic) | 100.40M107.60M | −6.7% |
| Shares Outstanding (Diluted) | 100.60M108.40M | −7.2% |
05—Questions
Frequently Asked Questions
What drove the large increase in net earnings this quarter?
Net earnings rose to $1,168.5 million from $378.3 million, primarily because of an equity investment gain of $835.2 million, which reflects an $828.6 million increase in the fair value of the Indicor investment. The increase was attributed to updated valuation assumptions made in anticipation of Indicor's planned divestiture of its instrumentation businesses. Income from operations grew more modestly, to $584.7 million from $548.3 million.
How did the operating segments perform?
All three segments grew revenue. Application Software rose 7.8% to $1,180.8 million with a 27.4% operating margin. Network Software rose 11.8% to $430.9 million, but its operating margin fell to 41.0% from 43.9%, mainly because of higher acquired-intangible amortization. Technology Enabled Products rose 7.3% to $497.2 million, with its operating margin falling to 33.3% from 35.4%, reflecting input cost pressures at its water meter technology business and product mix in medical products.
Why did debt and interest expense increase?
Total debt, net of deferred financing costs, rose to $11,319.4 million from $9,301.0 million, mainly due to $2,000.0 million of net borrowings on the unsecured revolving credit facility. Interest expense, net, increased to $111.4 million in the quarter from $79.1 million, due to higher average debt balances and a higher weighted-average interest rate on senior notes. The company also said it expects to reduce debt over time under its repayment schedule.
What is the status of the planned Indicor Instrumentation sale?
Indicor entered a definitive agreement on May 5, 2026 to sell its instrumentation businesses to AMETEK, Inc. for an enterprise value of approximately $5.0 billion. The deal is subject to customary closing conditions, including regulatory approvals, and is expected to close in the second half of 2026. Roper expects pre-tax cash proceeds of approximately $1.3 billion, subject to finalization of purchase price adjustments and transaction costs.
How is the company returning capital to shareholders?
In the first half of 2026, Roper repurchased 7.865 million shares for an aggregate $2,724.1 million at an average price of $346.34 per share, and paid $191.4 million in cash dividends. The board added $3,000.0 million of repurchase authorization in April 2026, leaving $2,775.9 million available at June 30, 2026. Dividends declared were $1.82 per share for the six months ended June 30, 2026.
06—Continue