GET DAILY SIGNALSRoper Technologies (ROP) Delivers +15% Adjusted DEPS Growth in Q3 2026
Key Takeaways
- Roper Technologies reported third-quarter 2026 revenue of $2.17 billion, up 8% year over year, with organic growth of 7%.
- Adjusted diluted earnings per share (DEPS) came in at $5.89, up 15% from a year ago and above both the company's guidance range and the consensus estimate.
- Total revenue landed fractionally below Wall Street's consensus estimate, while adjusted DEPS beat the Street's expectation.
- Management raised and narrowed its full-year 2026 adjusted DEPS outlook and issued fourth-quarter guidance.
- The company deployed $436 million across three bolt-on acquisitions for its iPipeline, ProCare, and Strata businesses.
Earnings Context and Why It Matters
Roper Technologies is a diversified technology company that builds vertical software and technology-enabled products for defensible niche markets. Its quarterly results offer investors a read on demand for mission-critical software, the pace of artificial intelligence (AI) adoption across its portfolio, and the effectiveness of its acquisition-driven growth strategy. With the company having raised full-year guidance earlier in the year and continuing to roll out AI features, this report carried weight as a test of whether that momentum could be sustained. For a firm that compounds value largely through disciplined capital deployment, third-quarter results also provide an important signal on balance-sheet strength and the pipeline of future acquisitions.
Reported Results
For the third quarter ended September 30, 2026, ROP reported net revenues of $2.17 billion, an increase of 8% compared with the prior-year period, driven by organic growth of 7% and a 1% contribution from acquisitions. Adjusted DEPS rose 15% year over year to $5.89, above the company's guided range of $5.75 to $5.80 and ahead of the Zacks consensus estimate of $5.79. Revenue came in slightly below the consensus estimate of roughly $2.177 billion. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Adjusted EBITDA was $864 million, up 7%, representing an EBITDA margin of 39.8%. Adjusted free cash flow was $805 million, or about 37% of revenue, down 4% year over year due to the timing of interest payments and a temporary collections lag at the company's Illumia business during an ERP implementation.
Management raised its full-year 2026 adjusted DEPS guidance to a range of $22.35 to $22.40 and set fourth-quarter adjusted DEPS guidance of $5.95 to $6.00.
Market Reaction and Investor Sentiment
ROP entered the quarter with strong recent momentum, with shares having returned about 8.5% over the prior month. The third-quarter print reinforced several themes that investors have rewarded: resilient organic growth, expanding AI adoption across the software portfolio, and an improving capital-deployment position. Adjusted DEPS landing above both guidance and consensus underscored the company's margin execution, even as a modest revenue miss relative to estimates showed the top line remains a point of scrutiny. Sentiment also benefited from the raised full-year outlook and the company's flexibility to pursue further acquisitions with more than $6 billion in capital-deployment capacity.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors will be watching how quickly Roper's AI initiatives translate from early adoption into measurable revenue. Management noted that 17 to 18 of the company's 21 software businesses now have AI-driven, "agentic" solutions in the market, with early monetization visible at businesses such as CentralReach. Still, commercialization remains in its early stages, and the pace of customer adoption will be a key swing factor for future growth.
Cost and margin trends also merit attention. While software segment margins expanded modestly, the Technology Enabled Products segment faced pressure in part because of a sales-mix shift toward mechanical meters at Neptune, which carries a dilutive effect on revenue dollars and margin. The company expects a longer-term migration to higher-value ultrasonic meters, but near-term results could remain uneven.
Finally, capital allocation remains central to the Roper story. With roughly $600 million of expected pre-tax proceeds from the sale of Indicor's flow-control businesses and more than $6 billion in total deployment capacity over the next 12 months, the pace and quality of future acquisitions and buybacks will shape free cash flow per share growth. Watch for commentary on AI adoption, Neptune's meter mix, and any new M&A announcements in the quarters ahead.
Tools That Support My Research Process
In my own work, I find Tickeron’s AI Screener particularly useful for quickly filtering opportunities across software and technology names. It allows me to combine fundamentals, technical patterns, and AI signals in one place, which helps me stay efficient when reviewing earnings seasons like this one. The platform has become a regular part of how I cross-check ideas and monitor sector trends without spending hours on manual searches.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for ROP turns positive, indicating new upward trend
ROP saw its Momentum Indicator move above the 0 level on October 08, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 107 similar instances where the indicator turned positive. In 46 of the 107 cases, the stock moved higher in the following days. The odds of a move higher are at 43%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for ROP just turned positive on October 06, 2026. Looking at past instances where ROP's MACD turned positive, the stock continued to rise in 20 of 48 cases over the following month. The odds of a continued upward trend are 42%.
ROP moved above its 50-day moving average on October 20, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +4.05% 3-day Advance, the price is estimated to grow further. Considering data from situations where ROP advanced for three days, in 142 of 340 cases, the price rose further within the following month. The odds of a continued upward trend are 42%.
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 8 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 10-day moving average for ROP crossed bearishly below the 50-day moving average on September 18, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 6 of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 46%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ROP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 45%.
ROP broke above its upper Bollinger Band on October 20, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for ROP entered a downward trend on October 08, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 44 (best 1 - 100 worst), indicating steady price growth. ROP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 61 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 65 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 67 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.103) is normal, around the industry mean (-1.402). P/E Ratio (16.496) is within average values for comparable stocks, (14.914). Projected Growth (PEG Ratio) (1.393) is also within normal values, averaging (2.824). Dividend Yield (0.009) settles around the average of (0.072) among similar stocks. P/S Ratio (4.782) is also within normal values, averaging (71.128).
The Tickeron PE Growth Rating for this company is 91 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ROP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
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General Information
an industrial conglomerate which provides engineering products and solutions for global niche markets
Industry PackagedSoftware
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