Roper Technologies (ROP) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $2.172B, up 8% YoY with 7% organic growth; adjusted EBITDA rose 7% and adjusted DEPS increased 15% to $5.89.

• Adjusted DEPS exceeded expectations, lifting FY 2026 guidance; AI launches broadened across software businesses and $436M went to three bolt-on acquisitions.

Financial highlights

• Adjusted EBITDA was $864M, up 7%, with a 39.8% margin; adjusted net earnings rose 5% to $586M, while GAAP net earnings increased 22% to $485M.

• Free cash flow was $805M, down 4% YoY; TTM adjusted free cash flow was $2.529B, up 4%.

• Nine-month operating cash flow was $1.882B, versus $1.802B in 2025; Q3 operating income was $623.2M, versus $573.0M YoY.

• Adjusted gross margin was 70.1%, up 60 bps YoY; core gross margin improved 70 bps, partly offset by a 10 bps impact from acquired businesses.

Outlook and guidance

• FY 2026 adjusted DEPS guidance increased to $22.35–$22.40 from $22.15–$22.30; revenue growth expectations are 8%+ total and ~6% organic.

• Q4 adjusted DEPS guidance is $5.95–$6.00; the expected tax rate is 20%–21%.

• Q4 organic growth outlook: mid-single-digit-plus for Application Software and Network Software, and mid-single-digit for Technology Enabled Products.

• FY free cash flow is expected at 30% or more of revenue, with free cash flow per share tracking in line with DEPS growth or slightly better; guidance excludes unannounced transactions and potential repurchases.