- Company name
- Roper Technologies
- Sector
- Vertical market software
- About
- Roper Technologies, Inc. (Roper) is a U.S. company based in Sarasota, Florida that owns and runs vertical market software and technology-enabled product businesses. It reports three segments: Application Software, Network Software and Technology Enabled Products. In 2025, revenue was $7.90 billion and adjusted EBITDA was $3.14 billion. In the first nine months of 2026, revenue was $6.376 billion, and Application Software was $3.612 billion of it. Its businesses include iPipeline, Procare, Strata, PowerPlan and Vertafore. Roper sold a majority of its industrial businesses to CD&R and now holds a minority stake in that company, Indicor. Neil Hunn is President and Chief Executive Officer.
- Thesis
- The market prices Roper like the other vertical software companies that investors fear AI will weaken. Roper's results are steady, with organic revenue growth of 7% and adjusted DEPS growth of 15% in Q3 2026, but investors doubt that agentic AI leaves the workflow software that Roper owns as hard to replace as before. Roper also changed its profile in 2026. It sold most of its industrial businesses, it spent $2.7 billion on repurchases in nine months, and its net debt reached $9.4 billion. For the shares to earn more, three things must be true. Organic revenue growth must stay at 5% or more, with AI features adding revenue and not lowering seats or prices. Free cash flow must keep funding bolt-on acquisitions at good returns and repurchases, with $2.78 billion of authority left. And the Indicor stake must turn into cash, starting with about $600 million before tax from the sale of Cornell Pump and Roper Pump to Xylem, expected in Q4 2026. The Q4 2026 report and the 2027 guidance, expected in late January 2027, are the next test, and the quarterly reports of 2027 show whether organic growth holds.
- Risks
- AI could lower the cost of building vertical software and let customers replace Roper's products or push down prices. Roper's valuation depends on its software staying embedded in customer workflows.
Roper's growth depends on buying businesses at good prices. It spent $463.2 million on acquisitions in nine months, and $3.28 billion in the same period of 2025. Higher prices, a blocked deal or poor integration lower returns.
Net debt was $9,408.7 million at September 30, 2026, or 32.9% of net capital, and $1,250.0 million of the revolver was drawn. Net interest expense rose to $106.7 million in Q3 from $89.7 million a year earlier.
Organic growth is uneven between segments. Network Software grew 4.9% organically in Q3 2026, and Technology Enabled Products operating margin fell to 33.1% from 33.9%.
The Indicor stake is carried at $577.0 million with a model that uses unobservable inputs, and the Xylem sale needs regulatory approval. GAAP earnings include gains and losses on the stake, which were a $1,058.7 million gain in nine months.
- Balance sheet
- Cash: $311M
Debt: $9.8B
Net debt: $9.4B
Undrawn credit line: $2.2B, to March 2031
Debt due within 12 months: $1.4B
Roper funds itself with senior notes, a revolving credit facility and cash flow. At September 30, 2026, total debt was $9,719.7 million after deferred financing costs. It was $8,500.0 million of senior notes, $1,250.0 million drawn on the revolver and $16.1 million of other debt. Cash was $311.0 million, so net debt was $9,408.7 million, or 32.9% of net capital. The current part of debt was $1,415.1 million. The five-year revolver of $3,500.0 million, signed on March 30, 2026, has $6.9 million of letters of credit. In the first nine months of 2026, operating cash flow was $1,882.2 million, and capital spending and capitalized software were $82.2 million. Roper repurchased 7.865 million shares for $2,724.1 million, paid $281.4 million of dividends, spent $463.2 million on acquisitions and received $1,239.2 million from the sale of Indicor's instrumentation businesses. It bought no shares in Q3, and $2,775.9 million of repurchase authority was left. Roper expects about $600 million before tax from the sale of Indicor's flow controls businesses in Q4 2026.
As of Sep 30, 2026.
- Checkpoints
- Oct 22, 2026: Q3 2026 results: organic growth and 2026 guidance. Passed. Watch: Organic revenue growth of 5% or more and a raised 2026 adjusted DEPS outlook pass; slower growth or a cut outlook fail. Outcome: Organic growth was 7%, adjusted DEPS rose 15% to $5.89, and 2026 guidance rose to $22.35 to $22.40.
Q4 2026 (estimate): Indicor flow controls sale to Xylem closes. Pending. Watch: Cash proceeds of about $600 million before tax by the end of 2026 pass; a block or delay beyond Q1 2027 fails.
Jan 26, 2027 (estimate): Q4 2026 results and 2027 guidance. Pending. Watch: 2027 adjusted DEPS guidance of $24 or more with organic growth of 5% or more passes; a lower outlook fails.
Apr 2027 (estimate): Q1 2027 results: AI products and Network Software growth. Pending. Watch: Organic growth stays at 5% or more with Network Software above 4% passes; slower growth fails.
- Recent events
- Nov 2, 2026: Roper filed its Form 10-Q for Q3 2026. It had 99.04 million shares outstanding at October 28, 2026, down from 106.6 million at the end of 2025. It bought no shares in Q3, and $2,775.9 million of its repurchase authority was left.
Oct 22, 2026: Roper reported Q3 2026 results. Revenue rose 8% to $2.17 billion, with organic growth of 7%, adjusted EBITDA was $864 million, and adjusted DEPS rose 15% to $5.89. Roper raised its 2026 adjusted DEPS guidance to $22.35 to $22.40 from $22.15 to $22.30, and guided Q4 to $5.95 to $6.00.
Oct 22, 2026: In the same report, Roper said that it spent $436 million on three bolt-on acquisitions for iPipeline, Procare and Strata in Q3 and received $1.2 billion from Indicor's sale of its instrumentation businesses.
Oct 1, 2026: Abhijit Dubey, Chief Executive Officer of NTT DATA, Inc., joined Roper's board of directors.
Sep 14, 2026: Roper bought Carline Inc. (Playground), a provider of AI-enabled child care management software, for $140.0 million. It joins the Procare business.
Aug 26, 2026: Roper bought Project Source Bidco Limited (Origo), a UK provider of connectivity software for pension providers and advisors, for $308.1 million. It joins the iPipeline business.
Aug 10, 2026: Indicor agreed to sell its flow controls businesses, Cornell Pump and Roper Pump, to Xylem for an enterprise value of about $1,460 million. Roper expects about $600 million of cash before tax when the sale closes, expected in Q4 2026.
Apr 23, 2026: Roper's board added $3.0 billion to its share repurchase authority. In the first nine months of 2026, Roper repurchased 7.865 million shares for $2,724.1 million, an average of $346.34 per share.
Mar 30, 2026: Roper signed a new five-year unsecured revolving credit facility of $3.5 billion, which replaced its earlier $3.5 billion facility.
Jan 27, 2026: Roper reported 2025 results: revenue of $7.90 billion, adjusted DEPS of $20.00 and adjusted free cash flow of $2.47 billion. It gave first guidance for 2026 adjusted DEPS of $21.30 to $21.55.