Roper Technologies surges on strong Q4 results, bullish 2026 guidance
Adjusted EPS beats estimates, company forecasts 7% growth with robust free cash flow
Roper Technologies shares advanced in pre-market trading Tuesday after the diversified industrial company reported fourth-quarter results that beat analyst expectations and issued 2026 guidance signaling continued momentum.
The Sarasota, Florida-based company posted adjusted earnings per share of $5.21 for the quarter ended December 31, exceeding the consensus estimate of $5.14, according to GlobeNewswire. Revenue reached $2.06 billion, representing a 10% increase from the prior year.
For the full year 2025, Roper delivered adjusted earnings of $20.00 per share, up 9% year-over-year, on revenue of $7.90 billion, which grew 12% compared with 2024. The company generated free cash flow of $2.47 billion, an 8% increase, demonstrating the strength of its asset-light business model focused on recurring revenue streams.
Looking ahead, Roper provided 2026 guidance projecting adjusted earnings per share of $21.30 to $21.55, representing approximately 7% growth at the midpoint. The company anticipates total revenue growth of around 8%, with organic growth of 5% to 6%. First-quarter 2026 adjusted earnings are expected to be between $4.95 and $5.00 per share.
The strong performance was supported by active capital allocation, including the repurchase of 1.12 million shares for $500 million during 2025 under a recently initiated buyback program. The company maintains significant flexibility for additional shareholder returns and acquisitions, with over $5 billion available for future deals, according to MarketScreener analysis.
Roper's diversified portfolio spans application software, network software, and technology-enabled products, with the application software segment accounting for 55% of total net revenue in 2024. The company's strategy focuses on acquiring high-margin, vertical software businesses with strong competitive positions in specialized markets, particularly in medical technology where it owns companies such as Verathon and CIVCO.
Analysts remain broadly positive on Roper's prospects despite the stock's recent decline from its 52-week high of $591.26. The consensus rating among Wall Street analysts is "Moderate Buy" with an average 12-month price target of $547.86, suggesting potential upside of more than 30% from current levels around $408, according to MarketBeat data. The stock has a trailing price-to-earnings ratio of 28.09 and a forward P/E of 18.94.
Institutional investors hold approximately 97% of Roper's outstanding shares, reflecting confidence in the company's business model and track record of consistent earnings growth. The company's focus on mission-critical software and medical technology products provides recurring revenue streams and high barriers to entry in its niche markets.
Roper's disciplined acquisition strategy has been a key driver of its performance, allowing the company to compound earnings through a steady stream of bolt-on acquisitions that integrate well with its existing portfolio. The company targets businesses with high gross margins and strong cash flow conversion, which support its model of generating substantial free cash flow while maintaining a conservative balance sheet.