For the first quarter, the difference between our GAAP results and adjusted results consists of the following items: amortization of acquisition-related intangible assets and financial impacts associated with our minority investment in Indicor. We'll discuss our segment highlights and outlook and introduce our Q2 and increased full-year 2026 guidance. First, we delivered a strong start to 2026 and are raising our full-year debt guidance. Total revenue grew 11%, organic revenue grew 6%, EBITDA grew 8%, free cash flow grew 11%, and DEPS was $5.16.
On that foundation, enterprise software bookings were also strong, core up low double digits on a TTM basis. On the back of this quarter's performance, we're raising our full-year DEPS guidance to a range of $21.80-$22.05, up $0.50 at the midpoint, and more on this later. The signal from our own portfolio that AI can be a meaningful growth driver in vertical software keeps getting clearer by the day. Importantly, our board authorized an additional $3 billion of repurchase capacity, giving us $3.8 billion of remaining authorization and north of $5 billion of total capital employment capacity over the next 12 months.
We're disciplined and unbiased between acquisitions and opportunistic buybacks, focusing on driving the best risk-adjusted long-term cash flow compounding per share for our shareholders. Our M&A pipeline today is targeted, focused on high-quality strategic opportunities where we're developing deep relationships and real conviction, and we expect to remain active as disciplined long-term buyers. As you heard, we delivered a strong first quarter, finishing well above the high end of our debt guidance range and ahead of expectations on organic growth. Revenue of $2.1 billion was up 11%, with organic growth of 6% and acquisitions contributing 5%.
| Metric | Period | Current guidance |
|---|---|---|
| Diluted EPS (adjusted) | Full-year 2026 | $21.80-$22.05 (up $0.50 at midpoint) (Raised) |
| Diluted EPS (adjusted) | Q2 2026 | Guidance introduced (New) |
| Organic revenue growth | Full-year 2026 | 5%-6% (mid-single digit plus) (Reiterated) |
| Application software organic growth | Balance of 2026 | Mid-single digit plus; lower in Q2 on non-recurring timing, improving in back half (Maintained) |
| Network software organic growth | Balance of 2026 | Mid-single digit plus (Maintained) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +11% | Organic growth of 6% plus 5% contribution from acquisitions; recurring software revenue grew 7%. |
| Application software revenue | +12% total, +5% organic | Recurring revenue (about 85% of segment) grew mid-single digit plus while non-recurring was essentially flat; strength at Aderant, Vertafore, and CentralReach. |
| Network software revenue | +14% total, +5% organic | Organic recurring grew mid-single digit plus; non-recurring declined as customers moved to cloud; Subsplash acquisition contributed to total growth. |
| Technology-Enabled Products revenue | +9% total, +7% organic | Exceptional demand at NDI for electromagnetic tracking and strong Verathon demand, better than expected. |
| EBITDA | +8% | EBITDA margin of 38.1%; core EBITDA margin down 70 bps on TEP gross margin mix and Neptune input costs, partially offset by 40 bps software margin expansion. |
| Free cash flow | +11% | Reached $562 million in the quarter; free cash flow per share up 15% on growing cash flow and declining share count. |
| Neptune revenue | Declined low single digits | Lower mechanical meter volumes partially offset by strong static meter growth; better than expected. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| AI velocity and commercialization across the portfolio | Discussed in January call | AI shifting from product investment to product shipping; CentralReach, Aderant, DAT and others delivering live AI-enabled SKUs with hard-dollar ROI | Rising |
| Roper AI accelerator strike team | Completed listening tour last quarter | Deployed into the field with first partnership at Vertafore (six AI agents launched), expanding from one to six engagements with ~10X productivity gains observed | Rising |
| Share repurchase and capital deployment | — | 6 million shares repurchased for $2.2 billion since November; board added $3 billion authorization, leaving $3.8 billion remaining and over $5 billion of annualized deployment capacity | Rising |
| M&A pipeline and private markets | Discussed prior quarters | Pipeline targeted and proprietary; constrained private credit and LP pressure improving setup for high-quality assets at differentiated values; timing TBD | Steady |
| SaaS / ground-to-cloud transitions | Discussed in prior quarters | Adds 50-100 bps of growth per year over the next 5-10 years; AI features may accelerate the timeline; Aderant and PowerPlan furthest along | Rising |
| GovCon / Deltek inflection | Discussed in January | Still awaiting inflection; private sector strong, GovCon enterprise soft; no GovCon inflection or OBBB benefit baked into guidance | Steady |