Full Transcript: Roper Techs Q2 2026 Earnings Call

On Thursday, Roper Techs (NASDAQ: ROP ) discussed second-quarter financial results during its earnings call. The full transcript is provided below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

30. The company is seeing significant momentum in AI and automation, launching new agentic features across its portfolio, and expects these innovations to expand their addressable markets and enhance customer workflows. 6 million shares during the quarter, and anticipates leveraging M&A opportunities as market conditions improve. In the TEP segment, revenue and organic growth were strong, with expected margin improvements in the second half due to better pricing and product mix.

Management highlighted the importance of AI-driven product development, emphasizing their strategy to monetize these innovations primarily through tiered subscription pricing models, while acknowledging the variable pace of customer adoption. Full Transcript OPERATOR Good morning. The Roper Techs conference call will now begin. Today's call is being recorded.

All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing zero. I would now like to turn the call over to Zack Moxie, Vice President, Investor Relations. Please go ahead.

Zack Moxie, Vice President, Investor Relations Good morning and thank you all for joining us as we discuss the second quarter financial results for Roper Techs. Joining me on the call this morning are Neil Hunn, President and Chief Executive Officer; Jason Conley, Executive Vice President and Chief Financial Officer; Brandon Cross, Vice President and Chief Accounting Officer; and Shannon O'Callaghan, Senior Vice President of Finance. Earlier this morning we issued a press release announcing our financial results. The press release also includes replay information for today's call.

We prepared slides to accompany today's call which are available through the webcast and are also available on our website. Now if you'll please turn to page two. We begin with our Safe Harbor statement. During the course of today's call, we will make forward-looking statements which are subject to risks and uncertainties as described on this page and in our press release and in our SEC filings.

You should listen to today's call in the context of that information. And now please turn to page three. Today we will discuss our results primarily on an adjusted non-GAAP basis for the second quarter. The difference between our GAAP results and adjusted results consists of the following: amortization of acquisition-related intangible assets; financial impacts associated with our minority investment in Indicor; and, lastly, cash collected on outgoes beneficial interest which is the residual amount owed to APCO after it sells receivables to a third party and is classified within Cash Flows from Investing Activities.

Reconciliations can be found in our press release and in the appendix of our presentation on our website. And now if you please turn to page four. I'll hand the call over to Neil. After our prepared remarks, we will take questions from our telephone participants.

Neil. Neil Hunn, President and Chief Executive Officer Thank you, Zack. And thanks everyone for joining us this morning. You can see our agenda on page four, so let's get right into it.

Next slide, please. As we turn to page five, I want to highlight three takeaways for today's call. First, we delivered solid results and are raising our outlook for the year. Second, AI momentum continues to build across the enterprise at an accelerating pace.

And third, we continue to execute our capital allocation opportunities with our long-standing discipline. Let me double click each point. First, second quarter results were solid and ahead of expectations. Total revenue grew 9%.

Organic revenue grew 5%. EBITDA grew 5% and free cash flow grew 11%. Importantly, enterprise gross retention remained strong, consistently in the mid-90s. On that foundation, enterprise software bookings remained solid, with core bookings up mid-single-digit plus on a TTM basis at a high level and across the portfolio.

Deltek had an encouraging second quarter, but we're not ready to call a turn in the GovCon market. Relative to Neptune, they had better first half performance than originally expected. And finally, at DAT, we're seeing improving freight market conditions for the first time in many years. 30.

That is up 30 cents at the midpoint and up 80 cents from our original guide in January. In addition, we're raising our full-year revenue growth outlook with total revenue now expected to be north of 8% and organic growth expected to be in the 6% range. Second, we continue to build momentum around AI and the automation of tasks and workflows within our end markets. During the quarter, our product release cadence accelerated and I'd like to highlight both the breadth of what we're doing and the vertical market depth of what each of our businesses is delivering on the AI and AgentIQ product front.

Since we last spoke, Deltek released agentic capabilities across both its GovCon and private sector solutions, including RFP development and month-end financial close. Vertafore released its AI Velocity platform with six agentic SKUs, which I'll get into more depth later. Strata released, in beta, its AI-enabled financial decision intelligence product. Aderant