Roper Technologies, Inc. (NASDAQ:ROP) stock fell Tuesday after it reported fourth-quarter results.
It clocked quarterly adjusted earnings per share of $5.21, beating the street view of $5.14.
Quarterly sales of $2.06 billion missed the analyst consensus estimate of $2.08 billion.
Revenue increased by 10% year-over-year, with a 5% contribution from acquisitions and a 4% increase in organic revenue.
The company exited the quarter with cash and equivalents worth $297.4 million and net inventories worth $141.7 million.
It generated $738 million in operating cash flow for the quarter, up from $722 million a year ago.
Roper Technologies' long-term debt (net of the current portion) as of quarter-end was $8.6 billion, up from $6.6 billion as of Dec. 31, 2024.
Roper Technologies CEO Neil Hunn highlighted the company's capital deployment strategy, pointing to $3.3 billion invested in high-quality vertical software businesses, including CentralReach, Subsplash, and several bolt-on acquisitions.
He also said Roper took advantage of market conditions to repurchase 1.12 million shares for $500 million under its recently launched share buyback program.
Looking ahead, Hunn said Roper enters 2026 on a stronger footing after making meaningful improvements in leadership talent, artificial intelligence capabilities, capital allocation discipline, and its operating model.
He emphasized the company's focus on accelerating innovation and commercialization to capture AI opportunities across its portfolio.
Outlook
Roper Technologies expects fiscal 2026 adjusted earnings per share of $21.30-$21.55, below the $21.65 analyst consensus estimate.
It expects annual revenue growth of ~8%, or $8.54 billion below the analyst consensus estimate of $8.61 billion.
It expects an annual organic revenue growth of approximately 5%-6%.
The company anticipates adjusted EPS of $4.95-$5.00 for the first quarter, below the $5.18 analyst consensus estimate.
ROP Price Action: Roper Technologies shares were down 7.85% at $376.60 during premarket trading on Tuesday. The stock is trading at a new 52-week low, according to Benzinga Pro data.
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