Roper Technologies, Inc.

Second-quarter revenue was $2.1 billion, up 9%, with organic revenue up 5% and acquisitions contributing 3 points. EBITDA was $815 million, up 5%, with EBITDA margin at 38.6%; diluted EPS was $5.38, up 10% year over year and above guidance of $5.25 to $5.30. Free cash flow was $447 million, up 11%, and free cash flow per share grew 19%. For the full year, management raised adjusted EPS guidance to $22.15 to $22.30, up $0.30 at the midpoint versus prior guidance and up $0.80 versus the original January guide. Full-year total revenue growth is now expected to be north of 8%, with organic growth expected in the 6% area. Q3 adjusted EPS guidance was set at $5.75 to $5.80.

Neil Hunn framed the quarter around three themes: solid results and a higher outlook, accelerating AI momentum, and disciplined capital allocation. He said the company is early in commercialization but sees a powerful flywheel as AI products improve with use, adoption expands, and customer value rises. He also described the portfolio as stronger than ever and said Roper will keep prioritizing long-term cash flow per share compounding.

Jason Conley emphasized that results were above the high end of guidance, with revenue of $2.1 billion, EBITDA of $815 million, adjusted EPS of $5.38, and free cash flow of $447 million. He said core EBITDA margin declined 70 basis points, mainly due to TEP input-cost pressure and mix shifts, while core software margins were down only 10 basis points including AI investment. On the balance sheet, Roper ended Q2 at 3.4x net debt to EBITDA with $365 million of cash and $2.9 billion drawn on its $3.5 billion revolver; it repurchased 3.6 million shares for $1.2 billion at about $341 per share and expects roughly $1.2 billion after tax from Indicor proceeds.

Analysts pressed on buybacks versus M&A, and management said recent buybacks became attractive because Roper’s share price made repurchases more compelling on a risk-adjusted basis. On deal flow, Neil Hunn said sponsor conversations are becoming more constructive as private owners accept public-market valuation reality, but he does not expect a near-term “massive breakthrough.” Questions on Vertafore and AI monetization drew the response that Vertafore’s agentic opportunity could roughly double its market size, but meaningful revenue from AI is not expected this year; most monetization is expected to come through subscription or tiered agent access, with some transactional models at businesses like SoftWriters and DAT. Analysts also asked about Deltek and the second-half outlook; management said the pipeline looks strong, but they want to see more consistent conversion before calling a trend.