Roper Technologies (ROP) Q2 2026 earnings summary

Executive summary

• Achieved 9% total revenue growth to $2.11 billion in Q2 2026, with 5% organic growth and 3% from acquisitions; adjusted DEPS rose 10% to $5.38, and GAAP DEPS surged 233% to $11.62, reflecting significant non-recurring items.

• Free cash flow increased 11% to $447 million; operating cash flow up 16% to $469 million; backlog rose 11% to $3.29 billion.

• AI momentum accelerated with multiple agentic product launches and strong early adoption across verticals.

• Disciplined capital allocation with $1.2 billion in Q2 share repurchases, $3.2 billion program-to-date, and share count reduced by over 8% in three quarters.

• Announced Indicor instrumentation divestiture, expecting $1.3–$1.4 billion in proceeds in H2 2026.

Financial highlights

• Q2 2026 revenue grew 9% 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 was $5.38, up 10% year-over-year.

• Free cash flow was $447 million for Q2, 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.

• GAAP net earnings for Q2 2026 were $1.17 billion, up 209% year-over-year, driven by equity investment gains.

Outlook and guidance

• Full-year 2026 adjusted DEPS guidance raised to $22.15–$22.30; revenue growth outlook increased to 8%+, organic growth to ~6%.

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

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

• Management expects internally generated cash flows and available credit to be sufficient for operating needs.

• Anticipates positive operating cash flows and continued debt reduction, subject to acquisition activity and market conditions.