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1. Company Snapshot

1.a. Company Description

Roper Technologies, Inc.designs and develops software, and engineered products and solutions.The company offers management, campus solutions, diagnostic and laboratory information management, enterprise management, information solutions, transportation management, financial and compliance management, and cloud-based financial analytics and performance management software; cloud-based software to the property and casualty insurance industry; and software, services, and technologies for foodservice operations.


It also provides cloud-based data, collaboration, and estimating automation software; electronic marketplace; visual effects and 3D content software; wireless sensor network and solutions; cloud-based software for the life insurance and financial services industries; supply chain software; health care service and software; RFID card readers; data analytics and information; and pharmacy software solutions.In addition, the company offers precision rubber and polymer testing instruments, and data analysis software; ultrasound accessories; testing and analyzing plastic solutions; dispensers and metering pumps; control valves; precision weighing equipment; automated surgical scrub and linen dispensing equipment; water meters; optical and electromagnetic measurement systems; automated leak detection equipment; medical devices; products and services for water and gas utilities; and equipment and consumables.It also provides temperature control and emergency shutoff valves; turbomachinery control hardware, software, and services; specialized pumps; flow meter calibrators and controllers; vibration monitoring systems and controls; analytical instrument; drilling power section; and pressure and level sensors.


The company was formerly known as Roper Industries, Inc.and changed its name to Roper Technologies, Inc.in April 2015.


The company was incorporated in 1981 and is based in Sarasota, Florida.

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1.b. Last Insights on ROP

Roper Technologies' recent outlook has been marred by a guidance miss, with management forecasting only 8% revenue growth for the upcoming year. This, combined with a sales miss in Q4, has sparked concern among investors. Additionally, the company's software business is perceived as outdated in a market increasingly focused on AI, leading to a negative reaction to its fourth-quarter performance. An analyst downgrade from Melius Research, which now holds a $479 price target, has further exacerbated the situation.

1.c. Company Highlights

2. Roper Technologies' Q4 2025 Earnings: A Strong Close to a Robust Year

Roper Technologies reported Q4 2025 revenue of $2.06 billion, a 10% year-over-year increase, with acquisitions contributing 5% and organic growth of 4%. EBITDA was $818 million, up 10%, with core EBITDA margin expanding 60 basis points to 54%. Diluted EPS was $5.21, above guidance, and up $0.40 year-over-year. For the full year 2025, revenue was $7.9 billion, up 12%, with acquisitions contributing 7% and organic growth of 5.5%. EBITDA was $3.1 billion, up 11%, with core margin improving 30 basis points.

Publication Date: Feb -02

📋 Highlights
  • Revenue Growth and Organic Performance:: Q4 2025 revenue reached $2.06 billion (+10% YoY), with 5% from acquisitions and 4% organic growth; full-year revenue hit $7.9 billion (+12% YoY), driven by 7% acquisition and 5.5% organic contributions.
  • Margin Expansion and EBITDA Growth:: Q4 EBITDA rose 10% to $818 million, with core margin expanding 60 bps to 54%; full-year EBITDA increased 11% to $3.1 billion, with 30 bps core margin improvement.
  • Capital Deployment and Share Repurchases:: $3.3 billion allocated to M&A in 2025, $500 million spent on share repurchases in Q4, and $6 billion remaining capacity for 2026 M&A and buybacks.
  • Segment Performance:: Application Software revenue grew 16% (+5% organic), Network Software rose 8% (+4% organic), and Test segment revenue increased 7% (+6% organic) in 2025.
  • 2026 Guidance and Strategic Focus:: Revenue growth target of 8% (5–6% organic), adjusted EPS guidance of $21.30–$21.55, and AI investments focused on cloud monetization, with long-term growth above 8% despite conservatism in current guidance.

Segment Performance

Application Software revenue grew 16% in 2025, with organic growth of 5%, while Network Software revenue grew 8% with organic growth of 4%. The Test segment revenue grew 7% on a total and 6% on an organic basis. The company's electromagnetic tracking solutions drove growth, with sustained momentum and strong OEM demand. Verathon also performed well, with solid growth in GlideScope and BFlex franchises.

Guidance and Outlook

For 2026, Roper expects revenue growth of 8%, organic revenue growth of 5-6%, and adjusted EPS of $21.3 to $21.55. The guidance assumes a full-year effective tax rate of 21% and doesn't bake in improvement at Deltek's GovCon business or DAT's freight market. The company is optimistic about AI product opportunities and has made investments to accelerate AI product development.

Capital Deployment

Roper deployed $3.3 billion towards high-quality vertical software acquisitions in 2025 and $500 million to repurchase 1.1 million shares in Q4. The company has over $6 billion in capacity for potential M&A and share repurchases in 2026. Roper remains active and opportunistic on capital deployment, with a robust M&A funnel and a meaningful remaining share repurchase authorization.

Valuation

With a P/E Ratio of 25.9 and an EV/EBITDA of 12.66, the market is pricing in a certain level of growth. The company's Free Cash Flow Yield is 6.16%, which is attractive. Analysts estimate next year's revenue growth at 6.4%, which is slightly below the company's guidance. The actual EPS of $5.21 beat estimates of $5.14, indicating a positive surprise.

AI Strategy and Margin Sustainability

Roper is making significant investments in AI functionality within its cloud product, which is expected to increase customer lifetime value. The company has brought in new AI leadership and is building a team focused on accelerating AI product development and monetization. On the margin side, core gross margins were up over one point in the quarter, driven by various tailwinds. The company expects long-term incremental margins at the EBITDA line to be around 45%.

3. NewsRoom

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Principal Financial Group Inc. Increases Stock Position in Roper Technologies, Inc. $ROP

Feb -01

Source: defenseworld.net

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National Pension Service Buys 3,875 Shares of Roper Technologies, Inc. $ROP

Feb -01

Source: defenseworld.net

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Why Roper Technologies Had a Lousy Week on the Stock Market

Jan -30

Source: fool.com

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Bank of New York Mellon Corp Decreases Stake in Roper Technologies, Inc. $ROP

Jan -30

Source: defenseworld.net

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Roper Technologies Q4 Earnings Call Highlights

Jan -28

Source: defenseworld.net

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Roper Technologies (NASDAQ:ROP) Hits New 52-Week Low After Analyst Downgrade

Jan -28

Source: defenseworld.net

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Roper Technologies Inc (ROP) Q4 2025 Earnings Call Highlights: Strong Financial Performance and Strategic Acquisitions

Jan -27

Source: gurufocus.com

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Roper Technologies, Inc. (ROP) Q4 2025 Earnings Call Transcript

Jan -27

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.62%)

6. Segments

Application Software

Expected Growth: 6.4%

Roper Technologies' software solutions drive growth in healthcare and education industries, fueled by increasing demand for digital transformation, data analytics, and process automation.

Technology Enabled Products

Expected Growth: 10.5%

Roper Technologies' growth is driven by increasing demand for technology-enabled products, expansion into new markets, and strategic acquisitions.

Network Software

Expected Growth: 7.5%

Roper Technologies' network management software solutions are driven by increasing demand for digital transformation, IoT adoption, and cybersecurity threats, leading to a strong growth hypothesis.

7. Detailed Products

Software and Information Services

Roper Technologies provides software and information services that help businesses and organizations manage their operations, improve efficiency, and make data-driven decisions. These services include software solutions for customer relationship management, human capital management, and financial management.

Medical Imaging and Service

Roper Technologies offers medical imaging solutions, including X-ray, CT, and ultrasound systems, as well as service and repair for medical imaging equipment. These solutions help healthcare providers diagnose and treat patients more effectively.

Security and Inspection Systems

Roper Technologies provides security and inspection systems, including sensors, detectors, and inspection equipment, that help organizations protect their assets, people, and infrastructure. These solutions are used in various industries, including transportation, logistics, and government.

Industrial and Commercial Instruments

Roper Technologies offers industrial and commercial instruments, including flow meters, pressure transmitters, and temperature sensors, that help businesses measure and control their industrial processes. These solutions improve process efficiency, reduce costs, and enhance product quality.

Electronic Components

Roper Technologies provides electronic components, including connectors, switches, and sensors, that are used in various industries, including aerospace, automotive, and industrial. These components help businesses design and manufacture innovative products.

8. Roper Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Roper Technologies, Inc. operates in a niche market with limited substitutes for its products and services, particularly in the fields of medical and industrial imaging, and software solutions. The company's focus on high-end, specialized products reduces the threat of substitution.

Bargaining Power Of Customers

While Roper Technologies has a diverse customer base across various industries, its customers are often large enterprises with significant purchasing power. However, the company's products and services are often critical to its customers' operations, which can limit their bargaining power.

Bargaining Power Of Suppliers

Roper Technologies has a large and diverse supplier base, which reduces the bargaining power of any individual supplier. Additionally, the company has a strong financial position, which allows it to negotiate favorable terms with its suppliers.

Threat Of New Entrants

The markets in which Roper Technologies operates are highly specialized and require significant investment in research and development, as well as regulatory approvals. This creates a barrier to entry for new competitors, reducing the threat of new entrants.

Intensity Of Rivalry

While Roper Technologies operates in a niche market with limited competitors, its products and services are often competing with those of established players in the industry. The company's strong brand reputation and focus on innovation help it to maintain a competitive edge, but there is still some level of rivalry in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 28.90%
Debt Cost 4.34%
Equity Weight 71.10%
Equity Cost 9.56%
WACC 8.05%
Leverage 40.65%

11. Quality Control: Roper Technologies, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Xylem

A-Score: 5.6/10

Value: 2.3

Growth: 5.6

Quality: 6.7

Yield: 2.0

Momentum: 7.5

Volatility: 9.3

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AMETEK

A-Score: 5.3/10

Value: 1.8

Growth: 5.8

Quality: 7.7

Yield: 1.0

Momentum: 6.0

Volatility: 9.3

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Howmet Aerospace

A-Score: 5.1/10

Value: 0.0

Growth: 6.8

Quality: 6.7

Yield: 0.0

Momentum: 9.5

Volatility: 7.7

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Otis

A-Score: 5.1/10

Value: 4.4

Growth: 4.4

Quality: 5.5

Yield: 3.0

Momentum: 4.0

Volatility: 9.0

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Roper Technologies

A-Score: 5.0/10

Value: 3.0

Growth: 5.6

Quality: 7.4

Yield: 1.0

Momentum: 3.0

Volatility: 10.0

1-Year Total Return ->

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Ingersoll Rand

A-Score: 4.2/10

Value: 2.1

Growth: 7.4

Quality: 6.0

Yield: 0.0

Momentum: 2.5

Volatility: 7.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

348.82$

Current Price

348.82$

Potential

-0.00%

Expected Cash-Flows