Roper Technologies (ROP) Q3 2026 Earnings Report
MX:ROP Q3 2026 EPS Results
- Actual EPS
- MXN 110.05
- Consensus EPS
- MXN 108.16
- Beat/Miss
- Beat by +MXN 1.89
- One Year Ago EPS
- MXN 96.03
MX:ROP Q3 2026 Revenue Results
- Actual Revenue
- MXN 40.58B
- Expected Revenue
- MXN 40.61B
- Beat/Miss
- Missed by -MXN 34.58M
- YoY Revenue Growth
- +7.65%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/22/2026
- Time
- Before Open
- Conference Call
- Thursday, October 22, 2026
Roper Technologies's next earnings date is estimated for February 3, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was strongly positive overall. The company delivered solid revenue, organic growth, EBITDA, and DEPS growth; raised full-year DEPS guidance; expanded AI products and began seeing early monetization; completed three bolt-on acquisitions; reduced leverage to 2.9x; and maintained more than $6 billion of capital deployment capacity. The main challenges were Neptune's weaker market and unfavorable mechanical-meter mix, lower year-over-year free cash flow and margins, uncertainty around DAT and Deltek, early-stage AI commercialization, and temporary Illumia collections issues. These lowlights were outweighed by the breadth of operating achievements and constructive outlook.
Management raised full-year adjusted DEPS guidance to a range of $22.35 to $22.40, a $0.15 increase at the midpoint from the prior guide and a $0.95 increase from the original guide, with total revenue growth north of 8% and organic revenue growth in the 6% area; fourth-quarter adjusted DEPS guidance is $5.95 to $6.00, the tax rate is expected to be in the 20% to 21% ZIP code, application software organic growth is expected to be similar to that of the third quarter, in the mid single digit plus range, network software organic growth is expected to be a touch higher than Q3 and be in the mid-single-digit-plus range, and TEP organic growth is expected to be in the mid single digit range; free cash flow is expected to be 30% or more of revenue, with free cash flow per share expected to grow in the double-digits area.
- Strong Third-Quarter Financial PerformanceRevenue was $2.2 billion, up 8% year over year, including 7% organic revenue growth. EBITDA was $864 million, up 7%, and adjusted DEPS was $5.89, up 15% and above the guided range of $5.75 to $5.80 due to better margin performance.
- Raised Full-Year Earnings GuidanceFull-year adjusted DEPS guidance was raised and narrowed to $22.35 to $22.40, a $0.15 increase at the midpoint from the prior guide and a $0.95 increase from the original guide. Full-year expectations remain for total revenue growth north of 8% and organic revenue growth in the 6% area. Fourth-quarter adjusted DEPS guidance was established at $5.95 to $6.00.
- Healthy Software Recurring Revenue and RetentionOrganic recurring revenue grew 8% across the two software segments. Enterprise software gross retention remained consistently in the mid-90s, while core enterprise bookings were up mid single digits on a trailing-twelve-month basis.
- Application Software Growth and Margin ExpansionApplication software revenue grew 7% overall and 6% organically. EBITDA margins were 43.7%, up 30 basis points year over year. Fourth-quarter organic growth is expected to be similar to the third quarter, in the mid single digit plus range.
- Network Software Growth and DAT MomentumNetwork software revenue grew 8% overall and 5% organically. DAT accelerated growth, supported by network expansion, higher average revenue per user, and continued adoption of digital freight marketplace solutions. Fourth-quarter organic growth is expected to be a touch higher than Q3 and in the mid-single-digit-plus range.
- TEP Segment Delivered Double-Digit GrowthTotal and organic TEP revenue both grew 10%, driven by exceptional growth at NDI and strong performance at Verathon. Verathon performed well across BFlex, GlideScope, and BladderScan, and received a positive customer response to the cFlex single-use cystoscope launch. CIVCO, FMI, Inovonics, and RF Ideas also delivered strong execution and growth.
- Broad AI Product Launches and Early AdoptionAI momentum continued across the portfolio, with 17 or 18 of the 21 software businesses having agentic solutions in the market; management said 100% of the businesses with an AI remit have AI tools today. Vertafore developed and launched 12 workflow automation agents since the beginning of the year and launched additional policy-processing agents. Aderant had seven AI agents in early access, while CentralReach, PowerPlan, Strata, Foundry, SoftWriters, SubSplash, and Deltek also launched or advanced AI capabilities.
- Initial AI Monetization Is VisibleManagement stated that early AI monetization is occurring where products reached the market first. Approximately 75% of CentralReach bookings and approximately 25% of Aderant bookings were described as AI or AI-related. AI monetization models include fixed consumption credits treated as recurring revenue, straight consumption pricing such as per script or per load, and cloud add-ons such as those planned for Deltek.
- Customer Productivity Benefits From AIPowerPlan's intelligent unitization product addresses more than $180 billion of capital investments awaiting detailed asset-class classification across U.S. electric utilities, with customers completing work in minutes that previously took days or weeks. CentralReach's Report Draft AI targets clinical reauthorization reports that typically take 9 to 12 hours per learner. Strata customers reported analysis that previously took several people hours becoming nearly instant and more comprehensive.
- Three Bolt-On Acquisitions CompletedThe company deployed $436 million toward bolt-on acquisitions for iPipeline, ProCare, and Strata. The acquisitions included Origo for iPipeline, Playground for ProCare, and C. Myers for Strata. Management said the businesses complement existing products, expertise, distribution, and customer relationships, and that all three tuck-ins are growing faster than their acquiring platforms.
- Improved Balance Sheet and Capital Deployment CapacityNet debt to EBITDA fell by half a turn during the quarter to 2.9x while the company simultaneously deployed $436 million on acquisitions. Roper ended the quarter with more than $300 million of cash and $1.3 billion drawn on its $3.5 billion revolver. Management said it has more than $6 billion of capital deployment capacity over the next 12 months.
- Expected Indicor Proceeds Increase Financial FlexibilityIndicor announced the sale of its remaining flow-controls businesses to Xylem, with approximately $600 million of pretax proceeds expected in the fourth quarter as the transaction proceeds through regulatory clearance.
- Positive Deltek and Cloud Conversion ProgressDeltek had another encouraging quarter, with continued strength in private-sector solutions, solid government-contracting bookings over the last couple of quarters, and increased customer interest in moving from perpetual licenses to cloud offerings. The announcement of the end of support for the Costpoint on-premise solution in the first quarter of 2028 is creating a migration catalyst.
- Positive Outlook for Neptune's Long-Term Technology MixManagement said long-term secular demand for static, or ultrasonic, meters remains intact because they provide higher value and better measurement over the life of the meter. The static-meter pipeline was described as strong, and management said the mix could become more favorable next year.
- Free Cash Flow Remains Strong on a Full-Year BasisThird-quarter free cash flow was $805 million, or 37% of revenue. Although it was down 4% year over year, management expects full-year free cash flow to be 30% or more of revenue and free cash flow per share to grow in the double-digits area.
MX:ROP Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 03, 2027 | 2026 (Q4) | 111.58- | 97.34 | ― | ― |
| Oct 22, 2026 | 2026 (Q3) | 108.16110.05 | 96.03 | 14.59% (+14.01) | |
| Jul 23, 2026 | 2026 (Q2) | 98.71100.52 | 90.99 | 10.47% (+9.53) | |
| Apr 23, 2026 | 2026 (Q1) | 93.1496.41 | 89.31 | 7.95% (+7.10) | |
| Jan 27, 2026 | 2025 (Q4) | 96.0197.34 | 89.87 | 8.32% (+7.47) | |
| Oct 23, 2025 | 2025 (Q3) | 95.4996.03 | 86.32 | 11.26% (+9.72) | |
| Jul 21, 2025 | 2025 (Q2) | 90.3090.99 | 83.7 | 8.71% (+7.29) | |
| Apr 28, 2025 | 2025 (Q1) | 88.4989.31 | 82.39 | 8.39% (+6.91) | |
| Jan 30, 2025 | 2024 (Q4) | 88.3589.87 | 81.65 | 10.07% (+8.22) | |
| Oct 23, 2024 | 2024 (Q3) | 84.6486.32 | 80.71 | 6.94% (+5.61) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.