Roper Technologies (ROP) investor relations material

Executive summary

• Q1 2026 delivered strong results with revenue up 11% to $2.1 billion, organic growth of 6%, and free cash flow up 11% to $562 million.

• Adjusted EBITDA increased 8% to $797 million, with a margin of 38.1%.

• AI innovation accelerated across the portfolio, with new AI-enabled products and an AI accelerator team driving faster development.

• Share repurchases totaled $2.2 billion for 6 million shares since November, with board authorization for an additional $3 billion, bringing remaining capacity to $3.8 billion.

• Full-year DEPS guidance increased by $0.50 to $21.80–$22.05, reflecting confidence in ongoing performance.

Financial highlights

• Total revenue grew 11% year-over-year to $2.1 billion, with organic growth of 6% and M&A contributing 5%.

• Adjusted DEPS increased 8% to $5.16; GAAP DEPS up 59% to $4.87.

• Free cash flow up 11% to $562 million for Q1; trailing twelve months free cash flow reached $2.5 billion.

• Gross margin improved to 69.4%, up 60 bps year-over-year.

• Net debt to EBITDA ended Q1 at 3.1x, up from 2.9x at year-end, reflecting share repurchase activity.

Outlook and guidance

• Full-year 2026 adjusted DEPS guidance raised to $21.80–$22.05; total revenue growth guidance maintained at ~8% and organic growth at 5–6%.

• Q2 2026 adjusted DEPS guidance set at $5.25–$5.30.

• Guidance excludes impacts from unannounced acquisitions, divestitures, and future share repurchases.

• $5 billion capital deployment capacity and $3.8 billion remaining share repurchase authorization provide flexibility for M&A and buybacks.

• Guidance assumes no meaningful improvement in Deltek's GovCon or DAT's freight markets and modest top-line weakness at Neptune.