RBC Capital Flags Organic Growth Concerns at Roper Technologies (ROP)

Roper Technologies, Inc. (NASDAQ:ROP) is included among the Dividend Growth Stocks: 25 Aristocrats.

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On January 29, RBC Capital chopped its terms people connected Roper Technologies, Inc. (NASDAQ:ROP) to $398 from $539 and kept a Sector Perform standing pursuing the company’s net and outlook. The steadfast said the crisp driblet successful the banal reflected capitalist unease astir weaker integrated maturation expected successful the 2nd fractional of the year, on with continued scrutiny of 3 softer areas successful Roper’s portfolio: Deltek, Neptune, and Procare. RBC besides pointed to the increasing hazard from AI crossed Roper’s businesses, noting that these concerns are apt to linger and cannot beryllium afloat ruled retired implicit the adjacent year.

Roper added to those concerns by forecasting 2026 gross and nett beneath Wall Street expectations, mostly owed to softer request astatine Deltek, its authorities contracting bundle unit. The institution sees full gross maturation of astir 8% for the year, compared with expert estimates person to 9%.

CEO Neil Hunn said the outlook reflects a much realistic and balanced presumption aft caller quarters fell short, driven chiefly by uncertainty astatine Deltek. He besides warned that aboriginal US authorities shutdowns could make further pressure, noting that Deltek saw a slowdown past September arsenic agencies paused enactment up of the astir caller shutdown.

For 2026, Roper expects adjusted net of $21.30 to $21.55 per share, beneath the $21.65 analysts had been forecasting, according to information from LSEG. First-quarter adjusted net are projected astatine $4.95 to $5.00 per share, besides beneath estimates of $5.18. The institution had already reduced its 2025 nett outlook successful October, chiefly due to the fact that of higher costs tied to caller acquisitions.

On the quarterly front, Roper reported gross of $2.06 cardinal for the play ended December 31, somewhat nether the $2.08 cardinal consensus. Hunn said results were held backmost by weaker perpetual licence revenue, which dragged connected integrated maturation successful the exertion bundle segment. Despite that, adjusted net for the 4th came successful astatine $5.21 per share, topping expectations of $5.14.

Roper Technologies, Inc. (NASDAQ:ROP) is simply a diversified exertion institution that focuses connected vertical bundle and technology-enabled products serving a scope of specialized, defensible niche markets.

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