Roper Technologies, Inc. Q1 FY2026 earnings call

• Delivered strong start to 2026 with 11% revenue growth, 6% organic revenue, 11% free cash flow growth, raised full-year depth guidance. • Accelerating AI innovation across portfolio, with multiple businesses releasing AI-enabled product capabilities. • Capital deployment: Repurchased 6 million shares for 2.2 billion since November, board authorized additional $3 billion repurchase capacity, $5 billion of capital deployment firepower available over next 12 months. • Organizational velocity across portfolio continues to build with investments in leadership, AI, modern engineering practices, and operational rigor showing results.

Application Software Segment: Revenue grew 12% in total, organic revenue growth 5%, EBITDA grew 13%, EBITDA margins 42%, core margins improved 50 basis points year over year. Recurring and reoccurring revenue about 85% of the segment grew in mid single digit plus range. Network Software Segment: Total revenue growth 14%, organic revenue grew 5%, EBITDA margins 50.7% down 460 basis points year over year, core margins held steady down just 20 basis points. Technology-abled Product Segment: Revenue grew 9% in total and 7% organic, EBITDA margins 33.6% down 260 basis points year-over-year.

• Raised full-year 2026 depth guidance to 2180 to 2205, up from 2130 to 2155. • Maintaining full-year total revenue growth guidance of approximately 8% and organic revenue growth of 5% to 6%. • Establishing Q2 adjusted depth guidance of 525 to 530. • Full-year guidance assumes no meaningful improvement at Deltek's GovCon market or DAT's freight market and modest top-line weakness at Neptune versus a year ago.

Q: Dylan Becker with William Blair asked about embeddability and monetization of AI platform.

A: Neil and Jason discussed product magic with AI, right to win with on-stack AI embedded natively, monetization including consumption basis and subscription with overage based on utilization.

Q: Brent Thiel with Jefferies asked about private markets and Dell Tech's government contracting business.

A: Neil talked about private markets being less busy but opportunities improving, Dell Tech's government contracting business had little impact from Middle East war.

Q: Joseph Verwink with Baird asked about AI-related spending and pricing power.

A: Neil said no impact on budgetary spend, Jason talked about pricing held up well and strategic pricing approach.

Q: Terry Tillman with Truist asked about sustainability of Adderant's momentum and AI commercialization.

A: Neil discussed Adderant's growth drivers and AI commercialization learnings.

Q: Joe Giordano with TD Cowan asked about ROI of AI investment.

A: Neil and Jason talked about demonstrable hard dollar ROIs and efficiencies in AI development.

Q: George Kuro with Citi asked about AI Strike team and AI commercialization stages.

A: Neil discussed team objectives and commercialization stages based on product readiness.

Q: Clark Jeffries with Piper Sandler asked about SaaS transitions and margin impact.

A: Neil talked about SaaS transition impact on growth and cloud product enablement.

Q: Josh Tilton with Wolf Research asked about offsetting weakness in application and network software.

A: Neil talked about confidence in application and network software segments.

Q: Ken Wong with Oppenheimer asked about geopolitical macro dynamics in guidance.

A: Neil said guidance downtick due to tough comps, no geopolitical impact.

Q: Julian Mitchell with Barclays asked about full-year guidance and DAT business.

A: Jason talked about share count assumption and cautious optimism on DAT business.

Q: Dean Dre with RBC Capital Markets asked about Neptune business.

A: Neil talked about no project delays in Neptune business and cost pressure dynamics.