Stifel Downgrades Roper Technologies to Hold Amid Revenue Misses
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: seekingalpha
- Performance Decline: Roper Technologies reported a 10% year-over-year revenue increase to $2.06 billion in Q4, missing market expectations and resulting in a 10% drop in share price, indicating ongoing performance challenges for the company.
- Revenue Forecast Adjustment: Analysts now expect Roper's organic revenue growth to decline to 5% to 6% in 2026, below prior consensus, reflecting weak demand in the Deltek and Neptune segments.
- Profitability Fluctuations: Although adjusted earnings per share of $5.21 exceeded expectations, adjusted free cash flow of $714 million fell short, highlighting challenges in cash flow management for the company.
- Market Outlook Uncertainty: Management's guidance for 2026 assumes significant acceleration in the second half of the year, but lingering uncertainties around Deltek demand and macroeconomic conditions pose risks to this outlook.
Get Free Real-Time Notifications for Any Stock
Monitor tickers like ROP with instant alerts to capture every critical market movement.
Sign up for free to build your custom watchlist and receive professional-grade stock notifications.
Analyst Views on ROP
Wall Street analysts forecast ROP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ROP is 558.36 USD with a low forecast of 419.00 USD and a high forecast of 650.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
10 Buy
2 Hold
3 Sell
Moderate Buy
Current: 360.370
Low
419.00
Averages
558.36
High
650.00
Current: 360.370
Low
419.00
Averages
558.36
High
650.00
About ROP
Roper Technologies, Inc. is a diversified technology company. It operates businesses that design and develop vertical software and technology-enabled products for a variety of defensible niche markets. The Company operates through three segments: Application Software, Network Software and Technology Enabled Products. The Application Software segment includes Aderant, Clinisys, Data Innovations, Deltek, Frontline, IntelliTrans, PowerPlan, Procare, Strata, Transact/CBORD, and Vertafore. The Network Software segment includes ConstructConnect, DAT, Foundry, iPipeline, iTradeNetwork, Loadlink, MHA, SHP, and SoftWriters. The Technology Enabled Products segment includes CIVCO Medical Solutions, FMI, Inovonics, IPA, Neptune, Northern Digital, rf IDEAS, and Verathon. Aderant is a comprehensive management software solution for law and other professional services firms. Data Innovations is a software solution that enables the enterprise management of hospitals and independent laboratories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Roper Technologies Q4 Earnings Miss Expectations, Shares Drop 13%
- Earnings Decline: Roper Technologies reported a 12% sales increase and an 8% rise in free cash flow for Q4, but missed Wall Street expectations, resulting in a 13% drop in share price.
- Cautious Outlook: Management's guidance for only 8% revenue growth in 2026 led to a significant stock decline, with shares now down 40% from their 52-week high.
- Market Challenges: Roper's Deltek and DAT businesses are under pressure from government budget cuts and a recession in the freight market, which has hindered performance and negatively impacted stock value.
- Acquisition Potential: Despite these challenges, management anticipates having $6 billion available for M&A or stock buybacks in 2026, which could allow for strategic acquisitions of niche software companies at discounted prices, enhancing shareholder value.
Continue Reading
ROPER STOCK FALLS 12.9% FOLLOWING Q4 REVENUE DISAPPOINTMENT
- Stock Performance: Roper shares have decreased by 12.9% following a disappointing fourth-quarter earnings report.
- Earnings Report Impact: The decline in stock price is attributed to a revision of earnings expectations that did not meet market forecasts.
Continue Reading