Roper Technologies raises 2026 adjusted DEPS guidance after third-quarter sales rise 8%

Roper Technologies Inc. (ROP) said Thursday its third-quarter revenue rose 8% to $2,171.8 million from $2,017.5 million a year earlier, and it raised its full-year adjusted DEPS guidance. A regulatory filing showed the results, which were released in a press release.

Adjusted diluted earnings per share, or DEPS, rose 15% to $5.89 in the quarter from $5.14 a year earlier. Net earnings under generally accepted accounting principles, known as GAAP, rose 22% to $484.7 million.

Here’s how the company did:

• Revenue: $2,171.8 million vs. $2,017.5 million a year earlier
• GAAP net earnings: $484.7 million vs. $398.5 million
• GAAP DEPS: $4.88 vs. $3.68
• Adjusted DEPS: $5.89 vs. $5.14
• Adjusted EBITDA: $864 million vs. $810 million
• Adjusted net earnings: $586 million vs. $557 million

Organic revenue rose 7%, and acquisitions added 1%.

Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, rose 7% to $864 million. Its margin was 39.8%, down 40 basis points from 40.2%.

Interest expense, net, was $106.7 million, up from $89.7 million a year earlier.

For the first nine months, revenue was $6,376.0 million, against $5,843.9 million a year earlier. Nine-month net earnings were $2,162.1 million, compared with $1,107.9 million.

Full-year guidance

Roper now expects full-year 2026 adjusted DEPS of $22.35 to $22.40, compared with previous guidance of $22.15 to $22.30.

For the fourth quarter, the company expects adjusted DEPS of $5.95 to $6.00. It expects full-year GAAP DEPS of $25.60 to $25.65, and fourth-quarter GAAP DEPS of $4.27 to $4.32.

The guidance excludes unannounced future acquisitions or divestitures, proceeds from Indicor’s pending divestiture of its Cornell Pump and Roper Pump businesses, and potential share repurchases. It also excludes future effects of the company’s minority investment in Indicor, which the company said cannot be reasonably predicted.

The full-year figure will not equal the sum of the quarters, the company said, due primarily to share repurchases.

Capital deployment

President and CEO Neil Hunn said, “Roper delivered another solid quarter, with 8% total revenue growth, 7% organic revenue growth, 7% EBITDA growth, and 15% adjusted DEPS growth.”

During the quarter, the company deployed $436 million toward three bolt-on acquisitions for its iPipeline, Procare and Strata businesses.

Following the sale of a majority stake in its industrial businesses to CD&R, Roper holds a minority interest in Indicor. Over the first nine months, the company received $1,239.2 million in proceeds from the Indicor transaction.

Over the same period, the company repurchased $2,726.7 million of common stock, compared with no repurchases a year earlier.

Hunn also said, “With more than $6 billion of capital deployment capacity, we will continue allocating capital with discipline to drive free cash flow per share compounding for our shareholders.”

Segment results

Application Software revenue rose to $1,239.7 million from $1,161.0 million. Its operating profit was $357.6 million, or 28.8% of revenue, against $323.0 million, or 27.8%.

Network Software revenue was $446.1 million, up from $413.4 million. Its operating profit was $189.6 million, or 42.5% of revenue, compared with $178.1 million, or 43.1%.

Technology Enabled Products revenue was $486.0 million, against $443.1 million. Its operating profit was $160.7 million, or 33.1% of revenue, compared with $150.2 million, or 33.9%.

Unallocated corporate general and administrative expenses and enterprise-wide stock-based compensation were $84.7 million, up from $78.3 million.

Other items

The equity investment gain, net, was $56.2 million in the quarter, compared with $12.9 million a year earlier. The company makes non-GAAP adjustments for the impacts of this investment.

Hunn said, “This quarter, our businesses again brought several AI launches to market, highlighted by PowerPlan, Strata, and Vertafore.”

The company will hold a conference call at 8:00 AM ET Thursday to discuss the results, according to the filing.