ROPER TECHNOLOGIES INC recently released its 10-Q report. The company designs and develops vertical software and technology-enabled products across the United States, Canada, Europe, Asia, and other international markets. Its businesses are organized into Application Software, Network Software, and Technology Enabled Products, with products and services sold through direct sales offices, representatives, resellers, and distributors.
In Item 2, management said the quarter was shaped by higher revenue, a larger backlog, a sharp gain tied to its Indicor investment, and higher interest expense. For the three months ended June 30, 2026, net revenues rose 8.5% to $2.109 billion from $1.944 billion a year earlier. For the first six months, revenue increased 9.9% to $4.204 billion from $3.826 billion.
Application Software generated $1.181 billion in second-quarter revenue, up 7.8%, with organic growth of 4.5% and acquisition growth of 3.1%. The segment’s gross margin improved to 69.8% from 68.8%, and operating margin rose to 27.4% from 26.9%. For the first half, revenue reached $2.372 billion, up 9.7%, with operating margin at 27.1% versus 26.4%.
Network Software posted second-quarter revenue of $430.9 million, up 11.8%, including 3.6% organic growth and 8.2% from acquisitions. Gross margin increased to 84.3% from 83.2%, while operating margin slipped to 41.0% from 43.9% as SG&A rose to 43.4% of revenue from 39.3%. For the first half, revenue was $858.5 million, up 12.8%.
Technology Enabled Products reported second-quarter revenue of $497.2 million, up 7.3%, driven by 7.1% organic growth. Gross margin fell to 56.9% from 58.6%, and operating margin declined to 33.3% from 35.4%. For the first half, revenue increased 7.9% to $973.4 million.
Corporate administrative expenses were $81.6 million in the quarter, up from $79.7 million. Interest expense, net, climbed to $111.4 million from $79.1 million, reflecting higher average debt balances and a higher weighted-average rate on senior notes. Equity investment activity produced a gain of $835.2 million in the quarter, including an $828.6 million increase in the fair value of the Indicor investment. Pretax earnings benefited from that gain, and income taxes as a percentage of pretax earnings fell to 10.7% from 22.0%.
Backlog at June 30, 2026 was $3.286 billion, up 11.0% from $2.961 billion a year earlier. Application Software backlog rose to $2.369 billion from $2.129 billion, Network Software backlog increased to $608.4 million from $534.0 million, and Technology Enabled Products backlog edged up to $309.1 million from $298.0 million. Following these announcements, the company's shares moved 0.7%, and are now trading at a price of $391.97. Check out the company's full 10-Q submission here.
