Roper Q4 Earnings Top Estimates, Application Software Sales Up Y/Y

Roper Technologies’ ROP 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.

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 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 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 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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This article originally published on Zacks Investment Research (zacks.com).

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