ROP · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

ROPER TECHNOLOGIES INC · 2026-11-02 · Importance 25 · Surprise 32

Third-quarter consolidated gross margin increased to 70.1% from 69.5% a year earlier, while nine-month gross margin increased to 69.7% from 69.2%. Application Software’s third-quarter margin rose to 69.8% from 69.0% due primarily to improved leverage on higher organic revenue; Network Software increased to 84.7% from 83.9%, helped by lower amortization and revenue leverage. Technology Enabled Products’ third-quarter gross margin declined to 57.4% from 57.6% because of input-cost pressures and water-meter and medical-product mix, and its nine-month margin fell to 57.1% from 58.3%.

Key facts

• Roper’s third-quarter 2026 gross margin was 70.1%, compared with 69.5% in the third quarter of 2025. source
• Roper’s third-quarter 2026 Application Software gross margin increased to 69.8% from 69.0%, primarily due to improved leverage on higher organic revenues. source
• Roper’s third-quarter 2026 Network Software gross margin increased to 84.7% from 83.9%, primarily due to improved leverage and lower amortization, partly offset by acquisition margin profiles, including Subsplash payments revenue mix and the Convoy platform. source
• Roper’s third-quarter 2026 Technology Enabled Products gross margin decreased to 57.4% from 57.6%, due primarily to input cost pressures and water meter mix, and medical product mix weighted more toward consumables. source