Roper Technologies reported fourth‑quarter 2025 revenue of $2.06 billion, a 10 % year‑over‑year increase, and adjusted earnings per share of $5.21, beating the consensus estimate of $5.14. The earnings beat was driven by disciplined cost management and a favorable mix shift toward higher‑margin Application Software, which grew to $1.159 billion from $1.057 billion in Q4 2024.
Full‑year 2025 revenue reached $7.90 billion, up 12 % from $7.04 billion in 2024, while adjusted earnings per share were $20.00, below the consensus estimate of $21.65. The miss reflected headwinds in the Technology‑Enabled Products division, including weaker performance in Deltek’s GovCon business and DAT’s freight market, as well as modest top‑line weakness at Neptune, all of which weighed on overall revenue growth.
Segment performance highlighted that Application Software revenue rose 10 % to $1.159 billion, driven by strong demand for vertical‑market solutions and recent acquisitions. Network Software revenue was $426 million, while the Technology‑Enabled Products segment saw a decline due to the aforementioned headwinds. These dynamics explain the overall revenue mix and the modest growth in the full‑year results.
EBITDA margins expanded to 39.7 %–39.8 % in Q4, with core EBITDA margin growth, reflecting pricing power and effective cost control. The margin expansion offset the impact of the Technology‑Enabled Products decline and underscored the company’s ability to maintain profitability amid a competitive environment.
Management reiterated 2026 guidance, projecting approximately 8 % revenue growth and adjusted earnings per share of $21.30 – $21.55. The guidance notes that organic growth is not expected to inflect in 2026, and the company will continue to invest in AI capabilities and high‑quality vertical software businesses while maintaining a $3 billion share repurchase program.
The market reacted negatively, citing the revenue miss and the conservative guidance for 2026, particularly the lower-than‑expected Q1 2026 EPS outlook. Investors expressed concern that the company’s cautious outlook may limit near‑term growth, despite the strong profitability and acquisition strategy highlighted by management.
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