In the fourth quarter of 2025, Roper Technologies delivered adjusted earnings per share of $5.21, an 8% increase year-over-year, and adjusted EBITDA of $818 million, up 10%. Total revenue rose 10% to $2.06 billion, driven by a 5% contribution from recent acquisitions and 4% organic growth. Free cash flow increased 4% to $714 million, while operating cash flow climbed 2% to $738 million. Despite these gains, total revenue fell slightly short of consensus estimates by approximately 1%, reflecting softer performance in its industrial technology segment and lower sales at its government-focused Deltek unit.

Management guided for full-year 2026 adjusted earnings per share in a range of $21.30 to $21.55 and forecast total revenue growth of roughly 8% with 5–6% organic expansion. These targets lagged analysts’ expectations by around 200 basis points on revenue growth and 5% on adjusted EPS, prompting a near 15% drop in the stock on the announcement day. The company cited reduced demand for its project-management software within government contracts as the primary driver of the lowered outlook.

Scott Davis of Melius Research maintained a Buy rating and set a fair-value estimate of $479 per share, implying approximately 35% upside from current levels. His valuation rests on a target multiple of 18x 2026 adjusted earnings, compared with the stock’s current 15x earnings multiple. Davis highlighted Roper’s long-term cash-flow compounding model, disciplined M&A strategy that deployed $3.3 billion last year into vertical software businesses, and resilient free cash flow conversion as key catalysts for multiple expansion over the next 12–18 months.