AI Takeaway
ROP (Roper Technologies) delivered strong Q1 FY2026 results with revenue up 11.3% YoY to $2.10B and net income surging 53.7% to $508.9M, driven by robust gross margin expansion and a significant share buyback program, though long-term debt rose sharply by 51.0%.
Revenue
$2.1B
++11.29% YoY
EPS (Basic)
$4.88
++58.44% YoY
Gross Margin
69.4%
++0.67% YoY
Operating Income
$569.6M
++8.33% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
ROP posted Q1 FY2026 revenue of $2.10B, up 11.3% YoY from $1.88B, reflecting continued demand strength across its software and technology segments. Gross profit grew even faster at 12.4% YoY to $1.45B, indicating favorable business mix.
Source: Source: 10-Q Income Statement
Net income jumped 53.7% YoY to $508.9M, significantly outpacing operating income growth of 8.3%, suggesting meaningful contributions from below-the-line items such as gains on investments or reduced interest expense relative to prior year. EPS (diluted) rose 59.2% to $4.87.
Source: Source: 10-Q Income Statement
SG&A expenses grew 15.1% YoY to $884.2M, outpacing revenue growth of 11.3%, which compressed operating margin by approximately 70 basis points to 27.2% from 27.9% in the prior year period.
Source: Source: 10-Q Income Statement
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Upgrade to unlockLong-term debt surged 51.0% YoY to $9.75B, substantially increasing ROP's financial leverage. With a debt-to-equity ratio of 0.84 and rising interest obligations, the company's ability to service debt could be pressured if operating cash flows deteriorate. This limits financial flexibility for future acquisitions, which are central to ROP's growth strategy.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlockReported EPS of $5.16 versus the $5.03 analyst consensus — a +2.6% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $2.1B | $1.88B | +11.29% |
Cost of Revenue | $641.5M | $589.1M | +8.89% |
Gross Profit | $1.45B | $1.29B | +12.38% |
Operating Income | $569.6M | $525.8M | +8.33% |
Net Income | $508.9M | $331.1M | +53.70% |
EPS (Basic) | $4.88 | $3.08 | +58.44% |
EPS (Diluted) | $4.87 | $3.06 | +59.15% |
SG&A Expense | $884.2M | $767.9M | +15.15% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $34.55B | $31.42B | +9.97% |
Current Assets | $1.91B | $1.7B | +12.17% |
Total Liabilities | $15.73B | $12.2B | +29.01% |
Current Liabilities | $3.58B | $3.69B | -2.99% |
Stockholders' Equity | $18.82B | $19.22B | -2.11% |
Cash & Equivalents | $382.9M | $372.8M | +2.71% |
Long-Term Debt | $9.75B | $6.46B | +50.97% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $592.1M | $528.7M | +11.99% |
Investing Cash Flow | $-56.1M | $-146.8M | +61.78% |
Financing Cash Flow | $-444.7M | $-207.8M | -114.00% |
Dividends Paid | $97.4M | $88.6M | +9.93% |
Share Buybacks | $1.5B | $0 | — |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 69.4% | 68.7% | +0.67% |
Operating Margin | 27.2% | 27.9% | -0.74% |
Net Margin | 24.3% | — | — |
ROE | 2.7% | — | — |
ROA | 1.5% | — | — |
Current Ratio | $0.534 | — | — |
Debt to Equity | $0.836 | — | — |
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Roper Technologies delivered strong Q1 FY2026 results with revenue of $2.10B, up 11.3% YoY, and net income of $508.9M, up 53.7% YoY. Diluted EPS came in at $4.87, a 59.2% increase from $3.06 in Q1 FY2025, partly boosted by a $1.50B share buyback program.
While revenue grew 11.3% YoY, net income surged 53.7% due to factors beyond operating performance, including likely non-operating income benefits and the impact of $1.50B in share repurchases reducing the share count. Operating income grew at a more modest 8.3%, suggesting the bulk of the net income outperformance came from below-the-line items.
ROP's long-term debt rose sharply by 51.0% YoY to $9.75B as of Q1 FY2026, likely to help fund the $1.50B share buyback program executed during the quarter. Total liabilities increased 29.0% YoY to $15.73B, raising the debt-to-equity ratio to 0.84.
Gross margin improved modestly to 69.4% from 68.7% a year ago, reflecting ROP's high-margin software business mix. However, operating margin declined slightly to 27.2% from 27.9% as SG&A expenses grew 15.1% YoY, faster than the 11.3% revenue growth rate.
ROP generated $592.1M in operating cash flow in Q1 FY2026, up 12.0% YoY, demonstrating strong cash conversion consistent with its software-focused business model. The company ended the quarter with $382.9M in cash and equivalents, while deploying $1.50B on share repurchases during the period.