ROPER TECHNOLOGIES INC has recently released its 10-Q report. Roper Technologies, Inc. is a diversified technology company that designs and develops vertical software and technology-enabled products in the United States and abroad, including Canada, Europe, and Asia. Its businesses are organized into three segments: Application Software, Network Software, and Technology Enabled Products, with offerings spanning management software, insurance and healthcare software, payment processing, supply chain tools, and a range of industrial and medical devices. The company, based in Sarasota, Florida, was incorporated in 1981 and changed its name from Roper Industries, Inc. in April 2015.
In Item 2, management said the quarter was shaped by higher revenue, a much larger equity investment gain, 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, with organic growth of 4.9% and acquisition-related growth of 3.4%.
Application Software revenue increased 7.8% to $1.181 billion, with organic growth of 4.5%; gross margin improved to 69.8% from 68.8%, and operating margin rose to 27.4% from 26.9%. Management pointed to broad-based organic growth in legal, project-based private sector, property and casualty insurance, higher education, and acute healthcare businesses, while acquisition growth was led by CentralReach and Orchard Software.
Network Software revenue climbed 11.8% to $430.9 million, including 3.6% organic growth and a larger contribution from 2025 acquisitions, especially Subsplash. Segment operating margin declined to 41.0% from 43.9%, as SG&A rose to 43.4% of revenue from 39.3%.
Technology Enabled Products revenue increased 7.3% to $497.2 million, with organic growth of 7.1%. Gross margin fell to 56.9% from 58.6%, and operating margin slipped to 33.3% from 35.4%, with management citing input cost pressure in water meter technology and a mix shift toward consumables in medical products.
Corporate expenses were $81.6 million, up from $79.7 million. Net interest expense increased to $111.4 million from $79.1 million, reflecting higher average debt balances and a higher weighted-average rate on senior notes.
The biggest single item in the quarter was equity investment activity, which produced a gain of $835.2 million, including an $828.6 million increase in the fair value of Roper’s Indicor investment. Management said the valuation change reflected updated assumptions ahead of Indicor’s planned divestiture of its instrumentation businesses. Income taxes fell to 10.7% of pretax earnings from 22.0% a year earlier, helped by tax benefits tied to the Indicor transaction and legal entity restructuring.
For the first six months of 2026, revenue rose 9.9% to $4.204 billion from $3.826 billion. Application Software contributed $2.372 billion, Network Software $858.5 million, and Technology Enabled Products $973.4 million. Backlog at June 30, 2026 was $3.286 billion, up 11.0% from $2.961 billion a year earlier, with Application Software accounting for $2.369 billion of that total. Following these announcements, the company's shares moved 0.7%, and are now trading at a price of $391.97. If you want to know more, read the company's complete 10-Q report here.
