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3 "Tollbooth" Stocks With Hidden Monopolies in Their IndustriesRoper Technologies NASDAQ: ROP is pursuing a strategy centered on long-term free-cash-flow-per-share growth, portfolio collaboration and acquisitions of vertical-market software businesses, while increasingly deploying artificial intelligence across its operations and products, Chief Financial Officer Jason Conley said at the Oppenheimer Technology Conference.

Conley described Roper as a vertical-market software and technology company with 29 businesses that lead their respective niche markets. The company targets mid-teens annual compounding of free cash flow per share over the long term, supported by organic growth, acquisitions and, more recently, share repurchases.

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3 Strong Dividend Growers for Income Without Rate RiskRoper’s businesses generally operate in smaller total-addressable markets that Conley said offer protective characteristics. He said the company’s organic growth is in the mid-single digits or higher, translating into high-single-digit cash-flow growth because of its margins, low capital-expenditure requirements and limited working-capital intensity.

Focus on Faster-Growing Software Platforms Over the past three years, Roper has shifted toward acquiring earlier-stage software companies with stronger growth rates, rather than focusing only on more mature businesses, Conley said. The company aims to help those businesses scale, add strategically relevant bolt-on acquisitions and capture margin opportunities through growth rather than cost cuts.

Conley pointed to the acquisitions of CentralReach and Subsplash, as well as bolt-on acquisitions for its DAT freight-market business, including Convoy and Outgo. He said CentralReach and Subsplash have performed in line with their value-creation plans during their first year under Roper ownership, tracking forecasts for revenue and EBITDA.

At DAT, Roper is working to automate portions of the spot freight market. Conley said the company’s acquisition of Convoy supports efforts to reduce the manual process of matching freight loads and carriers, while Outgo adds factoring technology. Both acquisitions are tracking well, though he noted the development of a new market can create a wider range of outcomes regarding timing.

Improved Outlook After First-Half Performance Roper raised its full-year adjusted earnings guidance to $22.15 to $22.30 per share from an initial range of $21.30 to $21.55. Conley said the increase reflected both share repurchases and better-than-expected operating performance, representing a 4% increase at the midpoint.

The company also raised its organic-growth outlook to 6% from a previous range of 5% to 6%. Conley cited stronger-than-expected execution at Neptune Technology Group, part of Roper’s technology-enabled products segment, as a key contributor. Neptune had faced concerns related to its cycle following COVID-era demand, but its first-half results exceeded expectations, he said.

Software performance was generally in line with expectations, while DAT showed improvement after what Conley described as a three- to four-year freight recession. Higher spot freight rates and an increasing number of carriers entering the market have supported the business, he said.

Deltek’s private-sector operations, which serve architecture, engineering and construction customers, have remained strong. Deltek’s government-contracting business has been slower, although Conley said the company saw “signs of life” during the second quarter, including a large license deal that was not included in its forecast. He said Roper is not yet prepared to call a recovery in government contracting demand.

Roper expects organic growth to accelerate in the second half partly because CentralReach will become organic to results in the third quarter and Subsplash in the fourth quarter. CentralReach is growing at more than 20%, Conley said. The technology-enabled products segment is expected to post high-single-digit growth in the second half, with an even stronger third quarter anticipated.

AI Deployment, Pricing and Competitive Positioning Conley said Roper began focusing on AI roughly two years ago, requiring each business to reconsider its markets and operations in an AI-driven environment. The company secured agreements with frontier-model providers about a year and a half ago and expanded its dedicated AI organization beginning in the third quarter of last year. The team has grown to about 20 people.

Roper is using AI both to develop products and improve internal software development. Conley said three or four businesses have fully moved to agentic coding, and every business has committed to doing so by the end of the year. However, he said Roper’s goal is not to use developer productivity primarily for significant margin expansion. Instead, it plans to reinvest productivity gains into product roadmaps and continued innovation.

CentralReach has generated AI revenue by offering capabilities beyond its core enterprise health-record product, including tools intended to improve therapist productivity and claims accuracy in the autism-care market. At DAT, adoption of freight-market automation has been slower because customers must change established workflows, Conley said.

Roper has not seen significant competitive threats from AI-native startups, according to Conley. He said certain point solutions have appeared in some markets, but Roper businesses have in some cases replicated those capabilities within weeks because their products are embedded in customer workflows. He identified a small data-business exposure involving public-company information as an area where AI-native competitors have targeted lower-end customers.

On AI economics, Conley said Roper does not currently see a gross-margin challenge from AI products. While margins may initially be lower than traditional software-as-a-service offerings, he said the company can reduce costs over time through model selection, prompt design, caching and batching. Roper uses frontier models for development and exploratory work, he said, but not generally for production tasks.

Capital Allocation and M&A Conley said Roper sees signs of a more constructive acquisition environment after several years of limited activity. He cited discussions with financial sponsors, indications from investment bankers that deal pipelines are improving, and heavy activity at commercial-diligence firms.

The company has developed an AI-focused “moat scorecard” for evaluating acquisition targets, examining both the risks and opportunities AI may create for a potential investment. Roper also uses lessons from its existing software portfolio to assess how AI could change customer workflows and competitive dynamics.

While Conley said Roper stock remains attractive at current levels, the company plans to pause share repurchases for now to preserve flexibility for potential acquisitions. If deal activity does not materialize, he said Roper could resume leaning into buybacks.

Looking toward the second half, Conley identified Deltek’s government-contracting business and carrier growth at DAT as variables that could affect results. He said the technology-enabled products segment also has some quarter-to-quarter variability because it is not a high-backlog business, though the company feels reasonably confident about third-quarter comparisons.

About Roper Technologies (NASDAQ:ROP)Roper Technologies, Inc NASDAQ: ROP is a diversified technology company that acquires and manages businesses delivering specialized software, engineered products and data-driven analytics to niche markets. Its subsidiaries develop enterprise and cloud-based software, scientific and analytical instruments, industrial and medical devices, and other applied technologies designed to solve specific operational, regulatory and commercial challenges for customers. The company emphasizes recurring revenue streams from software licenses, subscriptions and service contracts alongside sales of hardware and instruments.

Roper operates a decentralized operating model in which acquired businesses retain entrepreneurial autonomy while benefiting from centralized capital allocation, legal and financial support.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Increases full year guidance July 23, 2026 06:55 ET  | Source: Roper Technologies, Inc.

SARASOTA, Fla., July 23, 2026 (GLOBE NEWSWIRE) -- Roper Technologies, Inc. (Nasdaq: ROP) reported financial results for the second quarter ended June 30, 2026.

Second quarter 2026 highlights

Revenue increased 9% to $2.11 billion; organic revenue was +5% and acquisition contribution was +3%GAAP DEPS increased 233% to $11.62; adjusted DEPS increased 10% to $5.38GAAP operating cash flow increased 16% to $469 million; adjusted free cash flow increased 11% to $447 millionRepurchased 3.6 million shares for $1.2 billion in Q2 (program to date: 9.0 million shares for $3.2 billion) "Roper delivered another solid quarter, with 9% total revenue growth, 5% organic revenue growth, and 11% free cash flow growth," said Neil Hunn, Roper Technologies' President and CEO. "We repurchased 3.6 million shares for $1.2 billion during the quarter, bringing our cumulative repurchase activity over the past three quarters to 9.0 million shares or more than 8% of shares outstanding, and rolling our share count back to 2013 levels."

"We continue to accelerate our pace of AI innovation, having launched multiple new products across the portfolio this quarter that expand our addressable markets. Early adopters are seeing the value of these solutions that address complex workflow challenges. This reinforces our conviction that Roper's vertical market-leading businesses, with deep domain expertise and proprietary data, are well positioned to create differentiated value for customers."

"Given the combination of our strong first half performance, share repurchases to date, and durable customer demand for our mission-critical solutions, we are raising our full year outlook. With significant capital deployment capacity, we are focused on attractive acquisition targets that will continue compounding free cash flow per share for our shareholders," concluded Mr. Hunn.

Increasing 2026 guidance

Roper now expects full year 2026 adjusted DEPS of $22.15 - $22.30, compared to previous guidance of $21.80 - $22.05. The Company increased its full year total revenue growth outlook to 8%+, compared to a previous outlook of ~8%, and increased its organic revenue growth outlook to ~6%, compared to a previous outlook of +5 - 6%.

For the third quarter of 2026, the Company expects adjusted DEPS of $5.75 - $5.80.

The Company’s guidance excludes the impact of unannounced future acquisitions or divestitures, proceeds from Indicor's pending divestiture of its instrumentation businesses, as well as potential share repurchases.

Conference call to be held at 8:00 AM (ET) today

A conference call to discuss these results has been scheduled for 8:00 AM ET on Thursday, July 23, 2026. The call can be accessed via webcast or by dialing +1 800-836-8184 (US/Canada) or +1 646-357-8785, using conference call ID 70538. Webcast information and conference call materials will be made available in the Investors section of Roper’s website (www.ropertech.com) prior to the start of the call. The webcast can also be accessed directly by using the following URL https://event.webcast. Telephonic replays will be available for up to two weeks and can be accessed by dialing +1 646-517-4150 with access code 70538 #.

Use of non-GAAP financial information

The Company supplements its consolidated financial statements presented on a GAAP basis with certain non-GAAP financial information to provide investors with greater insight, increase transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. Reconciliation of non-GAAP measures to their most directly comparable GAAP measures are included in the accompanying financial schedules or tables. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP, and the financial results prepared in accordance with GAAP and reconciliations from these results should be carefully evaluated.

Minority interest

Following the sale of a majority stake in its industrial businesses to CD&R, Roper holds a minority interest in Indicor. The fair value of Roper’s equity investment in Indicor is updated on a quarterly basis and reported as "equity investment (gain) loss, net." Roper makes non-GAAP adjustments for the impacts associated with this investment.

Table 1: Revenue and adjusted EBITDA reconciliation ($M) Q2 2025 Q2 2026 V %GAAP revenue$      1,944  $      2,109  9 %
      Components of revenue growth     Organic    5 %
Acquisitions    3 %
Foreign exchange    — %
Total revenue growth    9 %
      Adjusted EBITDA reconciliation     GAAP net earnings$        378  $       1,168   Taxes           107             140   Interest expense             79               111   Depreciation             10               10   Amortization            213              221   EBITDA$        788  $      1,650  109 %
      Transaction-related expenses for completed
acquisitions              4               —   Financial impacts associated with minority
investments            (17)          (835)A Adjusted EBITDA$        775  $         815  5 %
Adjusted EBITDA margin 39.9%  38.6% (130 bps)
Table 2: Adjusted net earnings reconciliation ($M) Q2 2025 Q2 2026 V %GAAP net earnings$           378  $         1,168  209 %
Transaction-related expenses for completed
acquisitions                  3                  —   Financial impacts associated with minority
investments               (13)              (791)A Amortization of acquisition-related intangible
assets              160                164 B Adjusted net earnings C$           528  $           542  3 %
       Table 3: Adjusted DEPS reconciliation Q2 2025 Q2 2026 V %GAAP DEPS$          3.49  $          11.62  233 %
Transaction-related expenses for completed
acquisitions            0.03                  —   Financial impacts associated with minority
investments            (0.12)            (7.86)A Amortization of acquisition-related intangible
assets             1.48                1.63 B Adjusted DEPS C$          4.87  $          5.38  10 %
       Table 4: Adjusted cash flow reconciliation ($M) Q2 2025 Q2 2026 V %Operating cash flow$          404  $          469  16 %
Taxes paid in period related to divestiture               30                  —   Adjusted operating cash flow$          434  $          469  8 %
Capital expenditures               (16)                 (11)  Capitalized software expenditures               (14)                (16)  Outgo beneficial interest collections                —                   4 D Adjusted free cash flow$          403  $          447  11 %
       Table 5: Forecasted adjusted DEPS reconciliation Q3 2026 FY 2026 Low end High end Low end High endGAAP DEPS E$       4.07 $        4.12 $     24.78  $     24.93 YTD financial impacts associated with the
minority investment in Indicor ATBD TBD           (9.16)           (9.16)Amortization of acquisition-related
intangible assets B           1.68            1.68           6.53            6.53 Adjusted DEPS C$        5.75 $       5.80  $       22.15  $      22.30          Footnotes:

A.Adjustments related to the financial impacts associated with the minority investment in Indicor as shown below ($M, except per share data). Forecasted results do not include any future impacts associated with our minority investment in Indicor, as these future impacts cannot be reasonably predicted. These impacts will be excluded from all non-GAAP results in future periods.             Q2 2026A  Q3 2026E FY 2026E  YTD 2026 Pretax$           (835)  TBD TBD  $         (1,002) After-tax$            (791)  TBD TBD  $           (925) Per share$          (7.86)  TBD TBD  $           (9.16)           B.Actual results and forecast of estimated amortization of acquisition-related intangible assets as shown below ($M, except per share data).             Q2 2026A  Q3 2026E FY 2026E    Pretax$            208    $              211 $             835     After-tax$             164   $             167 $            660     Per share$             1.63   $            1.68 $            6.53              C.All actual and forecasted non-GAAP adjustments are taxed at 21% with the exception of the financial impacts associated with minority investments.           D.Cash collected on Outgo's beneficial interest, the residual amount owed to Outgo after it sells receivables to a third-party financial institution, classified within cash flows from investing activities.           E.Forecasted GAAP DEPS do not include any future impacts associated with our minority investment in Indicor. These impacts will be excluded from all non-GAAP results in future periods. Note: Numbers may not foot due to rounding.

About Roper Technologies

Roper Technologies is a constituent of the Nasdaq 100, S&P 500, and Fortune 500. Roper has a proven, long-term track record of compounding cash flow and shareholder value. The Company operates market leading businesses that design and develop vertical software and technology enabled products for a variety of defensible niche markets. Roper utilizes a disciplined, analytical, and process-driven approach to redeploy its excess capital toward high-quality acquisitions. Additional information about Roper is available on the Company’s website at www.ropertech.com.

Contact information:
Investor Relations
941-556-2601
[email protected]

The information provided in this press release contains forward-looking statements within the meaning of the federal securities laws. These forward-looking statements may include, among others, statements regarding operating results, the success of our internal operating plans, and the prospects for newly acquired businesses to be integrated and contribute to future growth, profit and cash flow expectations. Forward-looking statements may be indicated by words or phrases such as "anticipate," "estimate," "plans," "expects," "projects," "should," "will," "believes," "intends" and similar words and phrases. These statements reflect management's current beliefs and are not guarantees of future performance. They involve risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statement. Such risks and uncertainties include our ability to identify and complete acquisitions consistent with our business strategies, integrate acquisitions that have been completed, realize expected benefits and synergies from, and manage other risks associated with, acquired businesses, including obtaining any required regulatory approvals with respect thereto, and our ability to develop, deploy, and use artificial intelligence in our platforms and offerings. We also face other general risks, including our ability to realize cost savings from our operating initiatives, general economic conditions and the conditions of the specific markets in which we operate, including risks related to labor shortages and volatile interest rates, changes in foreign exchange rates, risks related to changing U.S. and foreign trade policies, including increased trade restrictions or tariffs, risks associated with our international operations, cybersecurity and data privacy risks, including litigation resulting therefrom, risks related to political instability, armed hostilities, incidents of terrorism, public health crises or natural disasters, increased product liability and insurance costs, increased warranty exposure, future competition, changes in the supply of, or price for, parts and components, including as a result of inflation and potential supply chain constraints, environmental compliance costs and liabilities, risks and cost associated with litigation, potential write-offs of our substantial intangible assets, and risks associated with obtaining governmental approvals and maintaining regulatory compliance for new and existing products. Important risks may be discussed in current and subsequent filings with the SEC. You should not place undue reliance on any forward-looking statements. These statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

Roper Technologies, Inc.   Condensed Consolidated Balance Sheets (unaudited)  (Amounts in millions)        June 30, 2026 December 31, 2025ASSETS:       Cash and cash equivalents$                          364.9  $                          297.4 Accounts receivable, net                              927.2                              1,001.0 Inventories, net                              145.4                                 141.7 Income taxes receivable                                73.3                                 128.2 Unbilled receivables                               153.8                                124.0 Prepaid expenses and other current assets                              253.9                                235.8 Total current assets                            1,918.5                              1,928.1     Property, plant and equipment, net                               158.7                                 156.9 Goodwill                         21,330.7                            21,341.2 Other intangible assets, net                          9,347.3                            9,764.2 Deferred taxes                                67.8                                   73.3 Equity investment                            1,792.2                                796.3 Other assets                              554.3                                 517.0 Total assets$                      35,169.5  $                     34,577.0     LIABILITIES AND STOCKHOLDERS’ EQUITY:       Accounts payable$                            174.1  $                           150.3 Accrued compensation                              232.0                                293.0 Deferred revenue                           1,707.8                             1,906.8 Other accrued liabilities                             588.9                                 642.3 Income taxes payable                                49.4                                   28.0 Current portion of long-term debt, net                               718.3                                705.2 Total current liabilities                          3,470.5                             3,725.6     Long-term debt, net of current portion                          10,601.1                            8,595.8 Deferred taxes                           1,897.4                              1,883.1 Other liabilities                             500.2                                 491.0 Total liabilities                         16,469.2                           14,695.5     Common stock, 350.0 shares authorized; 109.4 shares
issued and 98.9 outstanding at June 30, 2026 and 109.3
shares issued and 106.6 outstanding at December 31, 2025                                    1.1                                      1.1 Additional paid-in capital                            3,391.9                             3,292.2 Retained earnings                         18,697.6                           17,205.7 Accumulated other comprehensive loss                             (135.5)                              (101.4)Treasury stock, 10.5 shares at June 30, 2026 and 2.7 shares
at December 31, 2025                         (3,254.8)                               (516.1)Total stockholders’ equity                        18,700.3                            19,881.5 Total liabilities and stockholders’ equity$                      35,169.5  $                     34,577.0      Roper Technologies, Inc.     Condensed Consolidated Statements of Earnings (unaudited)    (Amounts in millions, except per share data)             Three months ended
June 30, Six months ended
June 30,  2026   2025   2026   2025Net revenues$       2,108.9  $       1,943.6  $      4,204.2   $      3,826.4Cost of sales             638.7               598.2            1,280.2             1,187.3Gross profit          1,470.2            1,345.4           2,924.0             2,639.1        Selling, general and administrative expenses             885.5                797.1             1,769.7            1,565.0Income from operations             584.7               548.3             1,154.3             1,074.1        Interest expense, net               111.4                  79.1                210.7               142.0Equity investment (gain) loss, net           (835.2)               (16.6)          (1,002.5)                27.8Other expense, net                 0.5                   0.5                     3.1                    1.0Earnings before income taxes          1,308.0               485.3            1,943.0               903.3        Income taxes              139.5               107.0               265.6                193.9Net earnings$        1,168.5  $          378.3  $       1,677.4  $         709.4        Net earnings per share:       Basic$           11.64  $            3.52  $          16.40  $            6.60Diluted$           11.62  $            3.49  $           16.35  $            6.55        Weighted average common shares outstanding:       Basic 100.4   107.6   102.3   107.5Diluted 100.6   108.4   102.6   108.3 Roper Technologies, Inc.        Selected Segment Financial Data (unaudited)        (Amounts in millions; percentages of net revenues)                         Three months ended June 30, Six months ended June 30,  2026   2025   2026   2025  Amount % Amount % Amount % Amount %Net revenues:               Application Software$   1,180.8   $  1,094.9   $  2,372.3   $    2,163.1  Network Software        430.9            385.4           858.5             761.3  Technology Enabled Products        497.2           463.3           973.4           902.0       Total$   2,108.9   $   1,943.6   $4,204.2    $  3,826.4                                  Gross profit:               Application Software$     823.7 69.8% $      753.3 68.8% $   1,646.3 69.4% $   1,474.1 68.1%Network Software        363.4 84.3%         320.8 83.2%          723.8 84.3%         636.4 83.6%Technology Enabled Products          283.1 56.9%           271.3 58.6%          553.9 56.9%          528.6 58.6%    Total$   1,470.2 69.7% $   1,345.4 69.2% $  2,924.0 69.5% $   2,639.1 69.0%                                Operating profit*:               Application Software$     324.0 27.4% $     294.6 26.9% $     643.2 27.1% $      571.4 26.4%Network Software         176.6 41.0%          169.3 43.9%         350.4 40.8%         336.0 44.1%Technology Enabled Products          165.7 33.3%           164.1 35.4%          320.1 32.9%           317.7 35.2%    Total$     666.3 31.6% $     628.0 32.3% $    1,313.7 31.2% $    1,225.1 32.0%                                * Segment operating profit is before unallocated corporate general and administrative expenses and enterprise-wide stock-based compensation. These expenses were $81.6 and $79.7 for the three months ended June 30, 2026 and 2025, respectively, and $159.4 and $151.0 for the six months ended June 30, 2026 and 2025, respectively. Roper Technologies, Inc. Condensed Consolidated Statements of Cash Flows (unaudited)(Amounts in millions) Six months ended
June 30,  2026   2025 Cash flows from operating activities:   Net earnings$    1,677.4  $      709.4 Adjustments to reconcile net earnings to cash flows from operating activities:   Depreciation and amortization of property, plant and equipment             20.1               19.6 Amortization of intangible assets         440.9             417.2 Amortization of deferred financing costs               6.3                 5.5 Non-cash stock compensation           108.2              82.7 Equity investment (gain) loss, net      (1,002.5)             27.8 Income tax provision          265.6            193.9 Changes in operating assets and liabilities, net of acquired businesses:   Accounts receivable             71.0              37.4 Unbilled receivables          (30.8)             (9.7)Inventories             (4.9)             (9.6)Prepaid expenses and other current assets           (23.3)           (22.9)Accounts payable            24.4                 7.0 Other accrued liabilities           (93.9)          (115.4)Deferred revenue         (193.6)          (132.7)Cash taxes paid for gain on disposal of equity investment                 —            (30.2)Cash income taxes paid, excluding tax associated with gain on disposal of equity investment         (190.2)         (233.7)Other, net             (13.1)            (13.5)Cash provided by operating activities        1,061.6            932.8     Cash flows from (used in) investing activities:   Acquisitions of businesses, net of cash acquired           (27.5)     (2,005.2)Capital expenditures           (25.3)           (26.0)Capitalized software expenditures           (30.9)           (26.8)Distributions from equity investment               6.7                 5.1 Cash receipts on beneficial interest in sold receivables               4.5                  — Other, net               0.2                 1.6 Cash used in investing activities           (72.3)       (2,051.3)    Cash flows from (used in) financing activities:   Borrowings under revolving credit facility, net      2,000.0         1,275.0 Debt issuance costs             (3.9)                 — Cash dividends to stockholders          (191.4)          (177.2)Repurchases of common stock     (2,726.7)                 — Proceeds from (tax withholding payments for) stock-based compensation, net             (8.6)             73.8 Treasury stock sales under employee stock purchase plan              12.7               12.5 Other, net             12.8            (43.9)Cash provided by (used in) financing activities         (905.1)         1,140.2     Effect of exchange rate changes on cash            (16.7)             32.5     Net increase in cash and cash equivalents             67.5              54.2     Cash and cash equivalents, beginning of period          297.4            188.2     Cash and cash equivalents, end of period$       364.9  $      242.4