Roper Technologies Inc (ROP.O): 2Q26 Recap: Dissipating Headwinds Support Raised Outlook

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Roper Technologies Inc (ROP.O): 2Q26 Recap: Dissipating Headwinds Support Raised Outlook

Roper Technologies Inc (ROP.O)

24 July 2026 Citi Research

ROP 2Q26 Earnings Recap

Management Callback Notes

AI Strategy

n The AI Accelerator team now has plans to scale beyond the initial tranche of 20

FTEs. Costs are being allocated into the AS and NS segments proportionally by

revenue, not by activity. The team is expected to grow further in 2H, with the

cost step-up factored into the guide, although the increase will be more

measured as new hires will be into more junior roles.

n ROP is tracking feature and product release velocity, AI bookings, and AI revenue

internally across the businesses, although noted most of the granular work is

done by the group executives.

Business-Level Outlook

n At Deltek, the GovCon environment is showing signs of stabilization. A large

license deal with a significant contractor that had been removed from the

forecast was ultimately closed at the expected value. While contractors continue

to wait until the last moment to procure, higher level data on appropriations

supports a view of a more robust environment.

n On the cloud transition, Deltek has announced end-of-support for Costpoint in

Q1 2028, which should drive license-to-cloud conversions. The timing is

expected to work through the system slowly, with more activity anticipated in

2027 than this year. New functionality is being delivered exclusively in the cloud,

which alongside the end-of-support flag makes a compelling migration case.

On Deltek uplift from cloud conversions, 2x is considered a reasonable working

assumption for now, with potential for higher on renewal if AI adoption

increases materially.

n At Neptune, copper input costs were a modest headwind in Q2 given its use in