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Roper Q4 Earnings Top Estimates, Application Software Sales Up Y/Y
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Key Takeaways
ROP posted Q4 adjusted EPS of $5.21, beating estimates, as earnings rose 8% year over year.
ROP's revenues grew 10% to $2.06B, led by Application Software growth and a 5% lift from acquisitions.
ROP expects 2026 adjusted EPS of $21.30-$21.55, with total revenue growth projected at about 8%.
Roper Technologies’ (ROP - Free Report) fourth-quarter 2025 adjusted earnings of $5.21 per share surpassed the Zacks Consensus Estimate of $5.14. The bottom line increased 8% on a year-over-year basis.
Roper’s net revenues of $2.06 billion missed the consensus estimate of $2.09 billion. The top line increased 10% year over year. Organic revenues grew 4%, driven by solid momentum in the Application Software segment. Acquisitions boosted sales by 5%.
In 2025, ROP reported net revenues of $7.9 billion, which increased 12% year over year. The company’s adjusted earnings were $20 per share, up 9% year over year.
Roper’s Segmental Performance in Q4
The company reports under three segments, namely Application Software, Network Software and Technology Enabled Products.
Application Software’s revenues totaled $1.16 billion, representing 56.3% of the quarter’s top line. The Zacks Consensus Estimate for the segment’s revenues was pegged at $1.19 billion. The segment’s revenues increased 10% on a year-over-year basis. Organic revenues increased 4%. Acquisitions boosted sales by 6%. Solid momentum in the company’s Deltek, PowerPlan, Aderant and Vertafore businesses augmented the segment’s performance.
Network Software & Systems generated revenues of $426.1 million, accounting for 20.7% of the quarterly top line. The Zacks Consensus Estimate for the segment’s revenues was pegged at $424 million. Segmental revenues grew 14% year over year. Organic revenues increased 5%. Acquisitions boosted sales by 9%. Strong momentum in the ConstructConnect and DAT businesses supported the segment’s performance. Also, strength across alternate site healthcare businesses (MHA, SHP & SoftWriters) augmented the results.
The Technology Enabled Products segment generated revenues of $473.6 million, accounting for 23% of the quarter’s top line. The Zacks Consensus Estimate for the segment’s revenues was pegged at $460 million. Sales were up 6% year over year. Organic revenues grew 5%. The strong performance of the Verathon and Neptune businesses drove the segment’s top-line performance.
Roper Technologies, Inc. Price, Consensus and EPS Surprise
Roper’s cost of sales increased 5.7% year over year to $628.7 million. Gross profit increased 11.5% to about $1.43 billion while the gross margin increased to 69.5% from 68.3% in the year-ago quarter.
Selling, general and administrative expenses increased 11.1% year over year to $841.6 million. Adjusted EBITDA was $818 million, reflecting year-over-year growth of 10%. The margin increased 10 basis points to 39.7%. Interest expenses (net) increased 31.8% year over year to $93.3 million.
Balance Sheet & Cash Flow of Roper
Exiting the fourth quarter of 2025, Roper had cash and cash equivalents of $297.4 million compared with $188.2 million at the end of December 2024. Long-term debt (net of current portion) was $8.6 billion compared with $6.58 billion at the end of 2024.
Roper generated net cash of $2.54 billion from operating activities in 2025, reflecting an increase of 6.1% from the year-ago level. Capital expenditure totaled $47.4 million compared with $66 million in the year-ago period.
In 2025, ROP rewarded its shareholders with a dividend payment of $355 million, up 10.3% year over year.
Roper’s Outlook
The company has provided its 2026 outlook. For 2026, Roper expects adjusted earnings per share from continuing operations to be in the range of $21.30-$21.55. Total revenues are expected to increase approximately 8%. Organic revenues are anticipated to increase 5-6% from the year-ago number.
For the first quarter of 2026, Roper anticipates adjusted earnings to be in the band of $4.95-$5.00 per share.
Graco Inc. (GGG - Free Report) posted quarterly earnings of 77 cents per share in the fourth quarter of 2025, in line with the Zacks Consensus Estimate. This compares with earnings of $0.64 per share a year ago.
Graco posted revenues of $593.2 million for the quarter, surpassing the Zacks Consensus Estimate by 1.39%. This compares to year-ago revenues of $548.67 million.
Baker Hughes Company (BKR - Free Report) reported fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents.
Total quarterly revenues of $7,386 million beat the Zacks Consensus Estimate of $7,056 million. The top line also increased from the year-ago quarter’s $7,364 million.
3M Company (MMM - Free Report) delivered adjusted earnings of $1.83 per share in the fourth quarter of 2025, which surpassed the Zacks Consensus Estimate of $1.82. The company reported earnings of $1.68 per share in the year-ago quarter.
MMM’s adjusted revenues of $6.00 billion missed the consensus estimate of $6.08 billion. On an adjusted basis, organic revenues increased 2.2% year over year.
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Roper Q4 Earnings Top Estimates, Application Software Sales Up Y/Y
Key Takeaways
Roper Technologies’ (ROP - Free Report) fourth-quarter 2025 adjusted earnings of $5.21 per share surpassed the Zacks Consensus Estimate of $5.14. The bottom line increased 8% on a year-over-year basis.
Roper’s net revenues of $2.06 billion missed the consensus estimate of $2.09 billion. The top line increased 10% year over year. Organic revenues grew 4%, driven by solid momentum in the Application Software segment. Acquisitions boosted sales by 5%.
In 2025, ROP reported net revenues of $7.9 billion, which increased 12% year over year. The company’s adjusted earnings were $20 per share, up 9% year over year.
Roper’s Segmental Performance in Q4
The company reports under three segments, namely Application Software, Network Software and Technology Enabled Products.
Application Software’s revenues totaled $1.16 billion, representing 56.3% of the quarter’s top line. The Zacks Consensus Estimate for the segment’s revenues was pegged at $1.19 billion. The segment’s revenues increased 10% on a year-over-year basis. Organic revenues increased 4%. Acquisitions boosted sales by 6%. Solid momentum in the company’s Deltek, PowerPlan, Aderant and Vertafore businesses augmented the segment’s performance.
Network Software & Systems generated revenues of $426.1 million, accounting for 20.7% of the quarterly top line. The Zacks Consensus Estimate for the segment’s revenues was pegged at $424 million. Segmental revenues grew 14% year over year. Organic revenues increased 5%. Acquisitions boosted sales by 9%. Strong momentum in the ConstructConnect and DAT businesses supported the segment’s performance. Also, strength across alternate site healthcare businesses (MHA, SHP & SoftWriters) augmented the results.
The Technology Enabled Products segment generated revenues of $473.6 million, accounting for 23% of the quarter’s top line. The Zacks Consensus Estimate for the segment’s revenues was pegged at $460 million. Sales were up 6% year over year. Organic revenues grew 5%. The strong performance of the Verathon and Neptune businesses drove the segment’s top-line performance.
Roper Technologies, Inc. Price, Consensus and EPS Surprise
Roper Technologies, Inc. price-consensus-eps-surprise-chart | Roper Technologies, Inc. Quote
ROP’s Margin Profile
Roper’s cost of sales increased 5.7% year over year to $628.7 million. Gross profit increased 11.5% to about $1.43 billion while the gross margin increased to 69.5% from 68.3% in the year-ago quarter.
Selling, general and administrative expenses increased 11.1% year over year to $841.6 million. Adjusted EBITDA was $818 million, reflecting year-over-year growth of 10%. The margin increased 10 basis points to 39.7%. Interest expenses (net) increased 31.8% year over year to $93.3 million.
Balance Sheet & Cash Flow of Roper
Exiting the fourth quarter of 2025, Roper had cash and cash equivalents of $297.4 million compared with $188.2 million at the end of December 2024. Long-term debt (net of current portion) was $8.6 billion compared with $6.58 billion at the end of 2024.
Roper generated net cash of $2.54 billion from operating activities in 2025, reflecting an increase of 6.1% from the year-ago level. Capital expenditure totaled $47.4 million compared with $66 million in the year-ago period.
In 2025, ROP rewarded its shareholders with a dividend payment of $355 million, up 10.3% year over year.
Roper’s Outlook
The company has provided its 2026 outlook. For 2026, Roper expects adjusted earnings per share from continuing operations to be in the range of $21.30-$21.55. Total revenues are expected to increase approximately 8%. Organic revenues are anticipated to increase 5-6% from the year-ago number.
For the first quarter of 2026, Roper anticipates adjusted earnings to be in the band of $4.95-$5.00 per share.
ROP’s Zacks Rank
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Graco Inc. (GGG - Free Report) posted quarterly earnings of 77 cents per share in the fourth quarter of 2025, in line with the Zacks Consensus Estimate. This compares with earnings of $0.64 per share a year ago.
Graco posted revenues of $593.2 million for the quarter, surpassing the Zacks Consensus Estimate by 1.39%. This compares to year-ago revenues of $548.67 million.
Baker Hughes Company (BKR - Free Report) reported fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents.
Total quarterly revenues of $7,386 million beat the Zacks Consensus Estimate of $7,056 million. The top line also increased from the year-ago quarter’s $7,364 million.
3M Company (MMM - Free Report) delivered adjusted earnings of $1.83 per share in the fourth quarter of 2025, which surpassed the Zacks Consensus Estimate of $1.82. The company reported earnings of $1.68 per share in the year-ago quarter.
MMM’s adjusted revenues of $6.00 billion missed the consensus estimate of $6.08 billion. On an adjusted basis, organic revenues increased 2.2% year over year.