Roper Technologies, Inc.

What they do

Roper operates market-leading businesses that design vertical software and technology-enabled products for niche markets, and it grows by improving operating performance and acquiring high-margin software and services businesses. It reports three segments: Application Software (Aderant, CentralReach, Clinisys, Deltek, PowerPlan, Procare, Strata, Transact/CBORD, Vertafore and others), Network Software (ConstructConnect, DAT, Foundry, iPipeline, iTradeNetwork, MHA, SHP, SoftWriters, Subsplash and others), and Technology Enabled Products. Sales to customers outside the U.S. totaled $1,029.7 million in 2025. The historical industrial businesses were divested into Indicor in November 2022 and are reported as discontinued operations.

Revenue drivers

• Application Software — Largest segment: Q2 2026 net revenues of $1,180.8 million, up 7.8% year over year, with 4.5% organic growth. Gross margin was 69.8% and segment operating margin 27.4%. Growth was broad-based, led by legal, project-based private sector, property and casualty insurance, higher education and acute healthcare markets.
• Network Software — Q2 2026 net revenues of $430.9 million, up 11.8%, with 3.6% organic growth and the highest gross margin at 84.3%. Growth was led by 2025 acquisitions, most notably Subsplash, and by freight match, construction and media/entertainment businesses. Segment operating margin was 41.0%.
• Technology Enabled Products — Smallest segment: Q2 2026 net revenues of $497.2 million, up 7.3%, all organic (7.1%) with no acquisition contribution. Gross margin was 56.9% and segment operating margin 33.3%. Gross margin and segment margin both declined from Q2 2025 levels.
• Acquisitions — Acquisitions contributed 3.4% of total Q2 2026 revenue growth, led by 2025 purchases of CentralReach and Orchard Software in Application Software and Subsplash in Network Software. Roper deployed approximately $8,960 million toward acquisitions over the last three years.

Recent performance

Q2 2026 revenue was $2,108.9 million, up 8.5% from $1,943.6 million, split between 4.9% organic growth, 3.4% from acquisitions and 0.2% from foreign exchange. GAAP diluted EPS rose 233% to $11.62, reflecting a large equity investment gain on the Indicor minority interest, while adjusted DEPS rose 10% to $5.38. Total gross margin was 69.7% versus 69.2%, but total segment operating margin fell to 31.6% from 32.3% as SG&A rose to 38.1% of revenue from 36.9%. First-half 2026 revenue was $4,204.2 million versus $3,826.4 million. GAAP operating cash flow rose 16% to $469 million and adjusted free cash flow rose 11% to $447 million.

Strategy

Roper's stated model is to compound cash flow and shareholder value by operating niche market-leading software and technology businesses and acquiring high-value-added software, services and technology-enabled products with high margins. In 2025 it acquired CentralReach for approximately $1,850 million and Subsplash for approximately $800 million; in 2024 it acquired Procare for approximately $1,860 million and Transact Campus for approximately $1,600 million; in 2023 it acquired Syntellis for approximately $1,380 million. Management says it is accelerating AI innovation, launching new products that expand addressable markets by embedding AI in mission-critical customer workflows. In Q2 2026 Roper repurchased 3.6 million shares for $1.2 billion, bringing cumulative repurchases over three quarters to 9.0 million shares for $3.2 billion, more than 8% of shares outstanding. Management says it has significant capital deployment capacity and is focused on attractive acquisition targets.

Risks

• Acquisition execution — Growth depends on identifying, completing and integrating acquisitions, and Roper states there is no assurance it will obtain regulatory clearance under the Hart-Scott-Rodino Act or similar foreign antitrust rules or that acquired operations will hit anticipated revenue, profitability or cash flow.
• Intellectual property and technology — Many products rely on proprietary technology, and Roper warns that unauthorized parties or competitors may copy or obtain and use its products or technology, including through misappropriation by contractors or other third parties.
• Technology Enabled Products margin pressure — Technology Enabled Products gross margin fell to 56.9% in Q2 2026 from 58.6% a year earlier and segment operating margin fell to 33.3% from 35.4%, with no acquisition contribution to offset weakness.
• Segment margin compression — Q2 2026 total segment operating margin declined to 31.6% from 32.3% and SG&A rose to 38.1% of revenue from 36.9%, driven by higher amortization from the CentralReach acquisition and higher Network Software SG&A.

Outlook

Management raised full-year 2026 adjusted DEPS guidance to $22.15-$22.30 from $21.80-$22.05, citing strong first-half performance, share repurchases and durable customer demand. It increased the total revenue growth outlook to 8%+ from 8% and the organic revenue growth outlook to 6% from +5-6%. For Q3 2026 it guides adjusted DEPS of $5.75-$5.80. Guidance excludes unannounced future acquisitions or divestitures, proceeds from Indicor's pending divestiture of its instrumentation businesses, and potential share repurchases.