Roper Technologies (ROP) investor relations material

Executive summary

• Achieved 9% total revenue growth to $2.1 billion in Q2 2026, with 5% organic growth and 3% from acquisitions.

• Adjusted DEPS rose 10% to $5.38; free cash flow increased 11% to $447 million; share repurchases totaled $1.2 billion in Q2 and $3.2 billion program-to-date.

• Raised full-year 2026 guidance for adjusted DEPS ($22.15–$22.30) and revenue growth (8%+), reflecting strong segment performance and AI momentum.

• Disciplined capital allocation with significant share repurchases and preparation for increased M&A activity.

• Announced Indicor instrumentation divestiture, expecting $1.2–$1.4 billion in proceeds to further strengthen the balance sheet.

Financial highlights

• Q2 2026 revenue grew 9% year-over-year to $2.1 billion; organic revenue up 5%; M&A contributed 3%.

• Adjusted EBITDA reached $815 million with a margin of 38.6%; adjusted DEPS of $5.38, up 10% year-over-year.

• Free cash flow was $447 million for the quarter, up 11% year-over-year; trailing 12-month free cash flow at $2.6 billion.

• Gross margin improved to 69.7%, up 60 bps year-over-year.

• Net earnings up 3% to $542 million; GAAP DEPS surged 233% to $11.62 due to non-recurring items.

Outlook and guidance

• Full-year adjusted DEPS guidance raised to $22.15–$22.30, up from prior guidance.

• Full-year total revenue growth now expected to exceed 8%, with organic growth around 6%.

• Q3 2026 adjusted DEPS guidance set at $5.75–$5.80.

• Guidance excludes impacts from unannounced acquisitions/divestitures and Indicor divestiture proceeds.

• Expecting mid-single-digit plus organic growth in application and network software segments for H2; high single-digit organic growth in TEP segment.