Roper Technologies’ ROP third-quarter 2025 adjusted earnings of $5.14 per share surpassed the Zacks Consensus Estimate of $5.11. The bottom line increased 11% on a year-over-year basis.
Roper’s net revenues of $2.02 billion matched the consensus estimate. The top line increased 14% year over year. Organic revenues grew 6%, driven by solid momentum in the Application Software segment. Acquisitions boosted sales by 8%.
Roper’s Segmental Performance in Q3
The company reports under three segments, namely Application Software, Network Software and Technology Enabled Products.
Application Software’s revenues totaled $1.16 billion, representing 57.4% of the quarter’s top line. Our estimate was $1.16 billion. The segment’s revenues increased 18% on a year-over-year basis. Organic revenues increased 6%. Acquisitions boosted sales by 12%. Solid momentum in the company’s Deltek, PowerPlan, Aderant and Vertafore businesses augmented the segment’s performance.
Network Software & Systems generated revenues of $413.4 million, accounting for 20.5% of the quarterly top line. Our estimate was $390 million. Segmental revenues grew 13% year over year. Organic revenues increased 6%. Acquisitions boosted sales by 7%. Strong momentum in the ConstructConnect and DAT businesses supported the segment’s performance. Also, strength across alternate site healthcare businesses (MHA, SHP & SoftWriters) augmented the results.
The Technology Enabled Products segment generated revenues of $443.1 million, accounting for 22.1% of the quarter’s top line. Our estimate was $463.5 million. Sales were up 7% year over year. Organic revenues grew 6%. The strong performance of the Verathon and Neptune businesses drove the segment’s top-line performance.
Roper Technologies, Inc. Price, Consensus and EPS Surprise
Roper Technologies, Inc. price-consensus-eps-surprise-chart | Roper Technologies, Inc. Quote
ROP’s Margin Profile
Roper’s cost of sales increased 13.2% year over year to $614.5 million. Gross profit increased 14.8% to about $1.40 billion while the gross margin increased to 69.5% from 69.2% in the year-ago quarter.
Selling, general and administrative expenses increased 14.5% year over year to $830.0 million. Adjusted EBITDA was $810 million, reflecting year-over-year growth of 13%. The margin decreased 50 basis points to 40.2%. Interest expenses (net) increased 32.5% year over year to $89.7 million.
Balance Sheet & Cash Flow of Roper
Exiting the third quarter of 2025, Roper had cash and cash equivalents of $320 million compared with $188.2 million at the end of December 2024. Long-term debt (net of current portion) was $9.15 billion compared with $6.58 million at the end of 2024.
Roper generated net cash of $1.80 billion from operating activities in the first nine months of 2025, reflecting an increase of 7.9% from the year-ago level. Capital expenditure totaled $37.6 million compared with $39.2 million in the year-ago period.
In the first nine months of 2025, ROP rewarded its shareholders with a dividend payment of $266 million, up 10.3% year over year.
Share Repurchase Update
Roper’s board has authorized a new share repurchase program with a total value of $3 billion. The program does not have a fixed timeline and will remain open-ended. The company will repurchase shares opportunistically, depending on prevailing market conditions.
Roper’s Outlook
The company has updated its 2025 outlook. For 2025, Roper expects adjusted earnings per share from continuing operations to be in the range of $19.90-$19.95 compared with $19.90-$20.05 anticipated earlier. Total revenues are expected to increase 13%. Organic revenues are anticipated to increase approximately 6% from the year-ago number.
For the fourth quarter of 2025, Roper anticipates adjusted earnings to be in the band of $5.11 - $5.16 per share.
ROP’s Zacks Rank
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Dover Corporation DOV reported earnings of $2.62 per share in third-quarter 2025, beating the Zacks Consensus Estimate of $2.50. This compares with earnings of $2.27 per share a year ago.
Dover posted revenues of $2.08 billion in the quarter, missing the Zacks Consensus Estimate by 0.6%. This compares with year-ago revenues of $1.98 billion.
Ardagh Metal Packaging S.A. AMBP came out with earnings of eight cents per share in the third quarter of 2025, beating the Zacks Consensus Estimate of seven cents. This compares with earnings of eight cents per share a year ago.
Ardagh Metal posted revenues of $1.43 billion in the quarter, beating the Zacks Consensus Estimate by 2.7%. This compares with year-ago revenues of $1.31 billion.
Packaging Corporation of America PKG reported earnings of $2.73 per share in the third quarter, missing the Zacks Consensus Estimate of $2.83. This compares with earnings of $2.65 per share a year ago.
Packaging Corp. posted revenues of $2.31 billion in the quarter, surpassing the Zacks Consensus Estimate by 2.2%. This compares with year-ago revenues of $2.18 billion.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
