Roper raises annual EPS forecast to $22.35–22.40 after beating guidance
Key Facts
Roper Technologies raised its 2026 adjusted diluted earnings per share forecast to $22.35–22.40 as it reported third-quarter results that exceeded its previous earnings guidance. The company said in its earnings release that adjusted diluted earnings per share reached $5.89 for the quarter, exceeding the upper end of the range it provided when reporting second-quarter results. At the time, it had forecast quarterly earnings per share of between $5.75 and $5.80, before the actual result came in above that range. For the full year, the new estimates replaced a previous forecast of between $22.15 and $22.30 in adjusted diluted earnings per share. Roper thus raised both ends of its annual guidance range, with the new low end exceeding the high end of its previous forecast. The guidance revision came as adjusted earnings per share grew faster than adjusted net income, alongside a decline in the weighted average diluted share count.
On the operating front, Roper's third-quarter revenue rose 8% from the same period a year earlier to $2.17 billion, according to the company's statement. Organic growth accounted for most of the increase, reaching 7% during the period, with a smaller contribution from acquisitions. Acquisitions added one percentage point to quarterly revenue growth, according to the company's breakdown of sales growth. Adjusted earnings before interest, taxes, depreciation and amortization totaled $864 million for the quarter, according to the reported results. However, the adjusted EBITDA margin fell to 39.8% of revenue from 40.2% in the third quarter of 2025, according to the earnings presentation for investors. Adjusted free cash flow also fell 4% year on year to $805 million, alongside growth in sales and adjusted earnings.
Adjusted net income totaled $586 million in the third quarter, up 5% year on year, according to Roper's earnings release. Adjusted diluted earnings per share, meanwhile, rose 15% from $5.14 in the same period a year earlier. The gap between the growth rates coincided with an 8% decline in the weighted average diluted share count to 99.4 million from 108.4 million a year earlier. The company had repurchased 3.6 million shares for $1.2 billion during the second quarter of 2026, according to that period's earnings release. Under U.S. generally accepted accounting principles, Roper reported quarterly net income of about $485 million. GAAP diluted earnings per share reached $4.88, up 33% from the third quarter a year earlier.
In capital deployment, Roper spent $436 million during the third quarter on bolt-on acquisitions for existing businesses within the group, according to the earnings release. These transactions included the iPipeline, Procare and Strata businesses among the acquisitions the company announced for the period. Roper also received $1.2 billion in proceeds from Indicor's sale of its instrumentation businesses. The company ended the quarter with a net debt-to-EBITDA ratio of 2.9 times, according to the investor presentation. The chief executive said the company's capital deployment capacity exceeded $6 billion. On products, the earnings presentation pointed to the launch of "new agentic AI solutions" by group companies.
For the remainder of 2026, Roper expects annual revenue growth of more than 8%, according to the guidance in its third-quarter earnings presentation. The company estimates organic revenue growth of about 6% for the year as part of its operating outlook. It also expects adjusted diluted earnings per share of between $5.95 and $6.00 in the fourth quarter of 2026. On anticipated divestitures, it expects total proceeds of approximately $600 million from Indicor's sale of Cornell Pump and Roper Pump to Xylem. The company scheduled its third-quarter earnings conference call for October 22, 2026, at 8:00 a.m. U.S. Eastern Time.