Why Roper Technologies Had a Lousy Week on the Stock Market
Key Points
For some investors, its software business is an anachronism in a world hungry for AI.
Despite decent growth rates, those market players reacted negatively to the tech conglomerate's fourth-quarter performance.
- 10 stocks we like better than Roper Technologies ›
On Tuesday, Roper Technologies (NASDAQ: ROP) published its final set of 2025 earnings. That led to a sell-off in the tech software conglomerate to leave its shares with a nearly 9% loss over the course of this week, according to data compiled by S&P Global Market Intelligence.
Revenue and profitability headed north
That occurred despite Roper's not-bad fourth quarter results. Revenue for the period bounced 10% higher year-over-year to $2.06 billion. Management attributed this almost equally to recent acquisitions contributing to the total and organic growth. Meanwhile, Roper's net income not in accordance with generally accepted accounting principles (GAAP) advanced 8% higher to hit $561 million, or $5.21 per share.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
The company slightly missed the average consensus analyst revenue estimate of $2.08 billion. On the other hand, it topped the $5.14 collective pundit forecast for adjusted profitabiity.
In its earnings press release, the company quoted CEO Neil Hunn as saying it's entered 2026 "with a fundamentally stronger foundation, following meaningful enhancements last year to our leadership talent, AI technical capabilities, capital deployment discipline, and operating model."
A hard line on software
Hunn's optimistic words matched Roper's guidance for full-year 2026. It's modeling revenue growth of 8% over 2025's $7.9 billion, with adjusted net income of $21.30 to $21.55 per share. Alas, both estimates are lower than the average analyst forecasts of 9% revenue growth and adjusted, per-share profitability of $21.65.
Despite the CEO's mention of AI in his comments, Roper is basically a collection of software businesses, and as such is out of favor (as the AI stock craze more or less persists). This makes it something of a sleeper stock to begin with, and a "disappointing" earnings report only enhances its current discount. I'd consider it a sleeper stock worthy of buy consideration now.
Some professional Roper-watchers would disagree. One of the more bearish moves made by that crew post-earnings was by Stifel's Brad Reback, who downgraded the shares to hold from his previous buy. He also sharply cut his price target to $385 per share from $550.
Should you buy stock in Roper Technologies right now?
Before you buy stock in Roper Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Roper Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $448,476!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,180,126!*
Now, it’s worth noting Stock Advisor’s total average return is 945% — a market-crushing outperformance compared to 197% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of January 30, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Roper Technologies. The Motley Fool has a disclosure policy.
Recommended Articles
