Roper Technologies, Inc. (NASDAQ: ROP) experienced a decline in stock value on Tuesday following the release of its fourth-quarter financial results. The company reported adjusted earnings per share of $5.21, surpassing analysts’ expectations of $5.14. However, its quarterly sales totaled $2.06 billion, falling short of the consensus estimate of $2.08 billion. Revenue showed a year-over-year increase of 10%, aided by 5% from acquisitions and 4% from organic growth.
At the close of the quarter, Roper held cash and equivalents amounting to $297.4 million and net inventories of $141.7 million. The company generated $738 million in operating cash flow, an increase from $722 million the previous year. The long-term debt of Roper Technologies rose to $8.6 billion, up from $6.6 billion at the end of the previous year.
CEO Neil Hunn discussed the firm’s strategy in capital deployment, noting an investment of $3.3 billion in high-quality vertical software businesses, including acquisitions of CentralReach and Subsplash. Roper also launched a share buyback program, repurchasing 1.12 million shares for $500 million.
Looking towards fiscal 2026, Roper anticipates adjusted earnings per share to be between $21.30 and $21.55, falling below the $21.65 consensus estimate. The company expects approximately 8% annual revenue growth and organic growth in the range of 5% to 6%. The forecast for the first quarter includes adjusted EPS between $4.95 and $5.00, also lower than the $5.18 consensus.
The company’s stock saw a decline of 6.34% during premarket trading, reaching a new 52-week low.
Why this story matters
Key takeaway
Opposing viewpoint
