Core Viewpoint - Roper Technologies reported strong financial results for the quarter ended June 2025, with significant year-over-year growth in revenue and earnings per share, exceeding market expectations [1][3]. Financial Performance - Revenue for the quarter was $1.94 billion, reflecting a year-over-year increase of 13.2% [1]. - Earnings per share (EPS) for the quarter was $4.87, compared to $4.48 a year ago, marking an increase [1]. - The reported revenue surpassed the Zacks Consensus Estimate of $1.93 billion by 0.9% [1]. - The EPS also exceeded the consensus estimate of $4.82, delivering a surprise of 1.04% [1]. Segment Performance - Revenue from Application Software was $1.09 billion, matching the average estimate and showing a year-over-year change of 17.5% [4]. - Revenue from Technology Enabled Products was $463.3 million, slightly above the average estimate of $453.67 million, with a year-over-year increase of 10.1% [4]. - Revenue from Network Software reached $385.4 million, exceeding the average estimate of $381.2 million [4]. - Operating profit for Application Software was $294.6 million, surpassing the average estimate of $282.52 million [4]. - Operating profit for Technology Enabled Products was $164.1 million, above the estimated $155.13 million [4]. - Operating profit for Network Software was $169.3 million, slightly below the average estimate of $171.2 million [4]. Stock Performance - Roper Technologies' shares have returned -3.1% over the past month, contrasting with the Zacks S&P 500 composite's +5.4% change [3]. - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3].

Core Insights - Roper Technologies reported a strong second quarter with total revenue growth of 13%, organic revenue growth of 7%, and free cash flow growth of 10 [3][9] - The company is increasing its full-year guidance based on robust second quarter results and a resilient demand for its solutions [6][7] - Roper announced the acquisition of Subsplash for $800 million, which is expected to enhance its AI capabilities and drive engagement for its customers [4][5] Financial Performance - Total revenue for Q2 2025 was $1.94 billion, up from $1.72 billion in Q2 2024, reflecting a 13% increase [9][12] - GAAP net earnings increased by 12% to $378 million, while adjusted net earnings rose by 9% to $528 million [9][12] - Adjusted EBITDA for the quarter was $775 million, a 12% increase compared to the previous year [9][12] Guidance and Outlook - The company now expects adjusted diluted earnings per share (DEPS) for 2025 to be in the range of $19.90 to $20.05, up from the previous range of $19.80 to $20.05 [6][15] - Roper anticipates total revenue growth for the full year to be approximately 13%, an increase from the previous outlook of around 12% [6][15] - For Q3 2025, adjusted DEPS is expected to be between $5.08 and $5.12 [6][15] Acquisition Strategy - The acquisition of Subsplash is expected to close later this month and is included in the company's updated guidance [7][6] - Subsplash is noted for its high-teens organic growth profile and potential for margin expansion under Roper's ownership [5][4] Segment Performance - Application Software segment revenue was $1.09 billion, Network Software revenue was $385 million, and Technology Enabled Products revenue was $463 million for Q2 2025 [27][28] - Gross profit margins for Application Software, Network Software, and Technology Enabled Products were 68.8%, 83.2%, and 58.6% respectively [28]

Roper Technologies' (ROP) first-quarter 2025 adjusted earnings of $4.78 per share surpassed the Zacks Consensus Estimate of $4.73. The bottom line increased 8% on a year-over-year basis. Roper's net revenues of $1.883 billion beat the consensus estimate of $1.878 billion. The top line increased 12% year over year. Organic revenues grew 5%, driven by solid momentum in the Application Software segment. Acquisitions boosted sales by 8%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) ...