Key Highlights

● Revenue rose 9% to $2.11 billion, with 5% organic growth.

● GAAP diluted earnings per share were $11.62, including a $7.86 investment benefit.

● Adjusted earnings per share were $5.38, against $4.87.

● Full-year adjusted earnings per share guidance rose to $22.15 to $22.30.

Roper Technologies, Inc. (NASDAQ:ROP) reported second-quarter 2026 GAAP diluted earnings per share of $11.62, more than three times the prior-year figure, but most of that increase came from a gain on a minority investment rather than from operations. The company announced the results on July 23, 2026 and raised its full-year guidance, with adjusted earnings per share up 10%. The distinction between the two measures is the key to reading the quarter.

Business and sector

Roper owns and acquires businesses that provide vertical software and technology products, and says its units hold deep domain expertise and proprietary data in their markets. The group has been reshaped by the sale of a majority stake in its industrial businesses to CD&R, after which it holds a minority interest in the resulting business, Indicor. That investment is carried at fair value, with quarterly changes reported as equity investment gains or losses. Roper's strategy relies on acquisitions and share repurchases to compound free cash flow per share.

Second-quarter results

Revenue rose 9% to $2.11 billion, made up of 5% organic growth and 3% from acquisitions, with no foreign exchange effect. GAAP net earnings were $1,168 million against $378 million, and GAAP diluted earnings per share were $11.62 against $3.49. The company's reconciliation shows a $791 million after-tax benefit, or $7.86 per share, from financial impacts associated with the minority investment, which is excluded from adjusted figures.

Adjusted earnings per share were $5.38 against $4.87. Adjusted net earnings rose 3% to $542 million, and adjusted EBITDA rose 5% to $815 million, with the adjusted EBITDA margin at 38.6% against 39.9%, a decline of 130 basis points. Operating cash flow rose 16% to $469 million, and adjusted free cash flow rose 11% to $447 million. Amortisation was $221 million and taxes were $140 million in the quarter, so non-cash amortization of acquired intangibles is a sizeable recurring item.

Capital deployment

Roper repurchased 3.6 million shares for $1.2 billion during the quarter, and 9.0 million shares for $3.2 billion since the program began, which the chief executive said was more than 8% of shares outstanding and returned the share count to 2013 levels. Interest expense rose to $111 million from $79 million, according to the EBITDA reconciliation. The chief executive added that the company has significant capital deployment capacity and is focused on attractive acquisition targets that compound free cash flow per share.

Guidance and risks

Roper now expects full-year 2026 adjusted earnings per share of $22.15 to $22.30, up from $21.80 to $22.05, with total revenue growth of 8% or more and organic growth of about 6%. For the third quarter it expects adjusted earnings per share of $5.75 to $5.80. They exclude unannounced acquisitions or divestitures, proceeds from Indicor's pending sale of its instrumentation businesses, and potential share repurchases.

Uncertainties include the volatility of the Indicor fair-value measure, which the company says it cannot predict and will exclude from non-GAAP results, the slightly lower adjusted EBITDA margin, higher interest costs, and the usual risks of acquisition-led growth. Because guidance excludes future buybacks and acquisitions, actual per-share outcomes could differ from the stated ranges in either direction.

Organic Growth Near 6% Is the Yardstick

Roper's second-quarter revenue rose 9% to $2.11 billion, with 5% organic growth, and adjusted earnings per share rose to $5.38 from $4.87, while GAAP diluted earnings per share of $11.62 included a $7.86 per share after-tax benefit from the Indicor minority investment. Adjusted EBITDA margin was 38.6%, down 130 basis points, and the company repurchased 3.6 million shares for $1.2 billion.

The third-quarter results will show whether organic growth stays near the roughly 6% full-year outlook and whether margins stabilize, and the Indicor investment will continue to affect GAAP figures each quarter. The completion and use of proceeds from Indicor's pending divestiture, the pace of acquisitions, and whether the AI products launched across the portfolio, which management says have expanded addressable markets, begin to appear in reported growth are further points to follow.