01—Abstract
Summary
Summary of the 10-Q filed November 2, 2026. Cited figures are marked; the original filing is the authoritative source.
Roper Technologies, Inc. reported third-quarter 2026 net revenues of $2,171.8 milliona, up from $2,017.5 million in the prior-year quarter, and net earnings of $484.7 million versus $398.5 million.
Diluted EPS was $4.88b compared with $3.68. Operating income rose to $623.2 million from $573.0 million. Nine-month results were materially lifted by a $1,058.7 million equity investment gain tied to Indicor, which drove nine-month net earnings to $2,162.1 million (diluted EPS $21.30).
Organic revenue growth was 6.7% in the quarter and 5.8% for the nine months, per the filing. The key balance sheet and capital allocation events were the August 26, 2026 closing of the Indicor Instrumentation divestiture to AMETEK, which delivered pre-tax cash proceeds of $1,239.2 millionc, and the repurchase of $2,726.7 million of common stock in the nine months, with $2,775.9 million remaining under the authorization. Total debt, net of deferred financing costs, rose to $9,719.7 million from $9,301.0 million, driven by $400.0 million of net revolver borrowings, and net debt to total net capital increased to 32.9% from 31.2%.
Shares outstanding fell to 99.0 million from 106.6 million at year-end 2025. The company also disclosed four nine-month acquisitions totaling $488.7 milliond, including Origo ($308.1 million) and Playground ($140.0 million), and a planned Indicor Flow Controls divestiture expected to close in the fourth quarter of 2026 with approximately $600 million of pre-tax proceeds to Roper. Backlog increased 9.4% to $3,471.6 million, and management stated it expects existing cash, operating cash flow and credit facility availability to be sufficient for its operating requirements.
02—Key points
Key Highlights
- Q3 2026 net revenues rose 7.6% to $2,171.8 million; organic revenue growth was 6.7%, with Application Software organic growth at 6.2% and Network Software at 4.9%.
- Q3 2026 net earnings were $484.7 million ($4.88 diluted EPS), up from $398.5 million ($3.68) in Q3 2025.
- Nine-month net earnings of $2,162.1 million include a $1,058.7 million equity investment gain, mainly from updated valuation assumptions tied to the Indicor divestitures.
- Indicor Instrumentation sale to AMETEK closed August 26, 2026, delivering $1,239.2 million of pre-tax cash proceeds; Indicor Flow Controls sale to Xylem is expected to close in Q4 2026 with about $600 million of pre-tax proceeds to Roper.
- Roper repurchased $2,726.7 million of common stock in the nine months ended September 30, 2026, reducing shares outstanding to 99.0 million; $2,775.9 million remains under the authorization.
- Total debt, net, increased to $9,719.7 million, and net debt to total net capital rose to 32.9% from 31.2%, reflecting $400.0 million of net revolver borrowings.
- Backlog rose 9.4% to $3,471.6 million; the company completed four acquisitions for $488.7 million in the nine months, including Origo and Playground.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Roper Technologies kept $0.22.
- Revenue$2.17B100.0%
- Cost of revenue−$649.2M29.9%
- Gross profit$1.52B70.1%
- Operating costs−$899.4M41.4%
- Operating income$623.2M28.7%
- Interest, other & tax−$138.5M6.4%
- Net income$484.7M22.3%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed November 2, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $2.17B$2.02B | +7.6% |
| Cost of Revenue | $649.20M$614.50M | +5.6% |
| Gross Profit | $1.52B$1.40B | +8.5% |
| SG&A Expenses | $899.40M$830.00M | +8.4% |
| Operating Income | $623.20M$573.00M | +8.8% |
| Net Income | $484.70M$398.50M | +21.6% |
| EPS (Basic) | $4.90$3.70 | +32.4% |
| EPS (Diluted) | $4.88$3.68 | +32.6% |
| Shares Outstanding (Basic) | 98.90M107.60M | −8.1% |
| Shares Outstanding (Diluted) | 99.40M108.40M | −8.3% |
05—Questions
Frequently Asked Questions
How did Roper's core operating performance trend in the third quarter of 2026?
Net revenues grew 7.6% to $2,171.8 million, with organic growth of 6.7%. Income from operations increased to $623.2 million from $573.0 million, and operating margin was 28.7% versus 28.4%. Application Software and Technology Enabled Products grew organically at 6.2% and 9.8%, respectively, while Network Software grew organically at 4.9%.
What drove the large nine-month earnings increase, and is it recurring?
Nine-month equity investment activity was a gain of $1,058.7 million, compared with a $14.9 million loss a year earlier. The gain was due primarily to an increase in the fair value of the Indicor equity investment, reflecting updated valuation assumptions made before the Indicor Instrumentation closing. Income taxes were also lower as a percentage of pretax earnings due to a tax benefit tied to the change in Roper's outside basis in Indicor. These items are tied to the Indicor transactions rather than operating results.
How is Roper using the Indicor proceeds and how did its capital structure change?
Roper received $1,239.2 million of pre-tax cash from the Indicor Instrumentation sale and used cash for share repurchases of $2,726.7 million and dividends of $281.4 million in the nine months. Total debt, net of deferred financing costs, increased to $9,719.7 million from $9,301.0 million because of $400.0 million of net revolver borrowings, and the company's $1,415.1 million current portion of long-term debt rose from $705.2 million. The filing states Roper expects to pay approximately $150 million of cash income taxes related to the Instrumentation transaction.
What acquisitions did Roper complete, and how were they recorded?
Roper completed four acquisitions in the nine months for $488.7 million net of cash acquired. Origo, a UK connectivity software provider acquired August 26, 2026, was purchased for $308.1 million and integrated into iPipeline. Playground, an AI-enabled child care management software business acquired September 14, 2026, was purchased for $140.0 million. The company recorded $243.6 million of goodwill and $317.2 million of other identifiable intangibles across these acquisitions.
What are the key items to watch in the coming quarters?
Key items include the expected Q4 2026 closing of the Indicor Flow Controls sale to Xylem, with approximately $600 million of pre-tax proceeds to Roper, and the annual goodwill and indefinite-lived intangible impairment analysis scheduled for Q4 2026. Investors should also watch the Amended ESPP's first offering period ending December 31, 2026, and the company's ability to reduce debt, as management stated the pace of debt reduction will depend on acquisition, share repurchase and operating requirements.
06—Continue