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Roper Technologies (ROP)
NASDAQ:ROP
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Roper Technologies (ROP) AI Stock Analysis

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ROP

Roper Technologies

(NASDAQ:ROP)

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Outperform 71 (OpenAI - 4o)
Rating:71Outperform
Price Target:
$530.00
▲(18.55% Upside)
Roper Technologies' overall stock score is driven by strong financial performance and positive earnings call insights, highlighting robust revenue and cash flow growth, strategic AI advancements, and significant M&A activity. However, technical analysis indicates bearish momentum, and the valuation suggests potential overvaluation, which tempers the overall score.
Positive Factors
Revenue Growth
Roper's strong revenue and cash flow growth indicate robust market demand and effective business execution, supporting long-term financial health.
AI Advancements
AI progress enhances Roper's product offerings and competitive position, driving future growth and innovation across its sectors.
M&A Strategy
Strategic acquisitions expand Roper's market reach and product portfolio, reinforcing its competitive edge and revenue base.
Negative Factors
Government Contracting Delays
Delays in government contracts can hinder growth in this segment, impacting revenue and potentially affecting strategic initiatives.
Tariff Impact on Neptune
Tariff-related disruptions can affect supply chain efficiency and revenue, posing challenges to maintaining profit margins.
Freight Market Challenges
A sluggish freight market can limit growth opportunities for DAT, impacting Roper's overall revenue and market positioning.

Roper Technologies (ROP) vs. SPDR S&P 500 ETF (SPY)

Roper Technologies Business Overview & Revenue Model

Company DescriptionRoper Technologies, Inc. designs and develops software, and engineered products and solutions. The company offers management, campus solutions, diagnostic and laboratory information management, enterprise management, information solutions, transportation management, financial and compliance management, and cloud-based financial analytics and performance management software; cloud-based software to the property and casualty insurance industry; and software, services, and technologies for foodservice operations. It also provides cloud-based data, collaboration, and estimating automation software; electronic marketplace; visual effects and 3D content software; wireless sensor network and solutions; cloud-based software for the life insurance and financial services industries; supply chain software; health care service and software; RFID card readers; data analytics and information; and pharmacy software solutions. In addition, the company offers precision rubber and polymer testing instruments, and data analysis software; ultrasound accessories; testing and analyzing plastic solutions; dispensers and metering pumps; control valves; precision weighing equipment; automated surgical scrub and linen dispensing equipment; water meters; optical and electromagnetic measurement systems; automated leak detection equipment; medical devices; products and services for water and gas utilities; and equipment and consumables. It also provides temperature control and emergency shutoff valves; turbomachinery control hardware, software, and services; specialized pumps; flow meter calibrators and controllers; vibration monitoring systems and controls; analytical instrument; drilling power section; and pressure and level sensors. The company was formerly known as Roper Industries, Inc. and changed its name to Roper Technologies, Inc. in April 2015. The company was incorporated in 1981 and is based in Sarasota, Florida.
How the Company Makes MoneyRoper Technologies generates revenue through multiple key streams, primarily from the sale of software and systems, as well as industrial and medical products. The company’s software solutions, which serve critical functions in healthcare and education, represent a significant portion of its revenue, often characterized by recurring subscription fees and maintenance contracts. Additionally, Roper's industrial technology segment provides products and services that enhance operational efficiency for manufacturers, contributing to steady revenue through equipment sales and servicing. The medical devices division, focusing on specialized equipment, also plays a vital role in Roper's financial performance, benefiting from ongoing demand in the healthcare sector. Strategic acquisitions of complementary businesses enhance Roper's product offerings and market reach, further solidifying its revenue base. Partnerships with key industry players and a commitment to innovation allow Roper to maintain a competitive edge and drive long-term growth.

Roper Technologies Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Breaks down revenue streams by business unit, showing which areas contribute most to sales and where there might be potential for expansion or risk.
Chart InsightsRoper Technologies' Application Software segment shows robust growth, driven by strong performance in AI-enabled solutions, aligning with a 17% revenue increase. The Network Software segment also benefits from strategic acquisitions, contributing to a 6% revenue rise. The recent acquisition of Subsplash is expected to bolster future earnings, reflecting Roper's strategic focus on expanding its software offerings. Despite challenges in government and education markets, Roper's raised revenue guidance and strong cash flow position it well for continued growth and further acquisitions.
Data provided by:Main Street Data

Roper Technologies Earnings Call Summary

Earnings Call Date:Oct 23, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Jan 29, 2026
Earnings Call Sentiment Neutral
The earnings call reflected strong overall financial growth, significant AI advancements, and strategic initiatives like share repurchase and M&A activity. However, it also highlighted challenges in government contracting, tariffs affecting Neptune, and a sluggish freight market affecting DAT.
Q3-2025 Updates
Positive Updates
Strong Financial Growth
Total revenue grew 14%, organic revenue grew 6%, and free cash flow increased by 17% with margins at 32%.
AI Progress and Potential
Significant advancements in AI across all businesses with tangible results, such as Aderant's leadership in legal tech and CentralReach's AI-driven product adoption.
Share Repurchase Authorization
Announcement of the first $3 billion share repurchase program, reflecting confidence in long-term strategy and shareholder value.
M&A Activity
Deployed $1.3 billion in acquisitions, including $800 million for Subsplash, and maintained over $5 billion capital deployment capacity for future M&A.
DAT Strategic Evolution
Transformation of DAT from a freight matching network to a fully automated AI-powered platform with significant TAM expansion potential.
Negative Updates
Government Contracting Delays
Softness in Deltek's GovCon business due to the government shutdown, impacting the expected organic growth rate.
Neptune Tariff Impact
Short-term disruption from new copper tariffs, causing delays in Neptune's order timing and affecting near-term revenue.
Freight Market Challenges
Ongoing freight market downturn, affecting DAT's performance despite strategic advancements.
Company Guidance
During the Roper Technologies conference call, the company provided guidance indicating strong performance in the third quarter of 2025, with total revenue growth of 14% and organic revenue growth of 6%. Software bookings increased in the high single digits, while free cash flow grew impressively by 17%, resulting in free cash flow margins of 32% for the trailing twelve months (TTM) period. The company announced its first share repurchase authorization of $3 billion, reflecting confidence in its strategy and execution capabilities. Roper also executed $1.3 billion in acquisitions, including $800 million for Subsplash and $500 million for various tuck-in acquisitions, and reported a net debt-to-EBITDA ratio of 3x. Looking forward, Roper expects continued strong financial performance, with a focus on leveraging AI innovations and maintaining robust capital deployment capabilities, with over $5 billion available for the next 12 months.

Roper Technologies Financial Statement Overview

Summary
Roper Technologies demonstrates strong financial performance with consistent revenue growth, robust profitability, and effective cash flow management. The balance sheet is stable with manageable leverage, though there is room for improvement in return on equity. Minor pressures on profit margins are noted.
Income Statement
85
Very Positive
Roper Technologies has demonstrated consistent revenue growth with a 3.39% increase in the TTM period. The company maintains strong profitability with a gross profit margin of 68.96% and a net profit margin of 20.34%. The EBIT and EBITDA margins are also robust at 29.90% and 43.93%, respectively, indicating efficient operational management. However, the slight decline in gross profit margin compared to previous periods suggests potential cost pressures.
Balance Sheet
78
Positive
The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.46, indicating prudent leverage. The return on equity is at 8.08%, showcasing effective utilization of shareholder funds, though slightly lower than previous years. The equity ratio stands at 57.80%, suggesting a solid equity base relative to total assets.
Cash Flow
82
Very Positive
Roper Technologies exhibits strong cash flow management with a 5.98% growth in free cash flow. The operating cash flow to net income ratio is 0.81, indicating healthy cash generation relative to earnings. The free cash flow to net income ratio is high at 0.97, reflecting efficient conversion of earnings into cash. These metrics highlight the company's ability to generate cash and sustain operations.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue7.72B7.04B6.18B5.37B4.83B4.85B
Gross Profit5.32B4.88B4.31B3.75B3.41B3.27B
EBITDA3.39B3.04B2.66B2.12B1.88B1.78B
Net Income1.57B1.55B1.36B1.19B1.10B949.70M
Balance Sheet
Total Assets34.58B31.33B28.17B26.98B23.71B24.02B
Cash, Cash Equivalents and Short-Term Investments320.00M188.20M214.30M792.80M351.50M308.30M
Total Debt9.45B7.67B6.37B6.71B7.96B9.62B
Total Liabilities14.59B12.47B10.72B10.94B12.15B13.54B
Stockholders Equity19.99B18.87B17.44B16.04B11.56B10.48B
Cash Flow
Free Cash Flow2.46B2.33B1.93B664.30M1.95B1.48B
Operating Cash Flow2.52B2.39B2.04B734.60M2.01B1.53B
Investing Cash Flow-3.29B-3.47B-2.13B1.21B-142.90M-6.07B
Financing Cash Flow822.10M1.07B-499.50M-1.47B-1.81B4.14B

Roper Technologies Technical Analysis

Technical Analysis Sentiment
Negative
Last Price447.05
Price Trends
50DMA
495.90
Negative
100DMA
521.49
Negative
200DMA
544.43
Negative
Market Momentum
MACD
-17.03
Positive
RSI
28.77
Positive
STOCH
27.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ROP, the sentiment is Negative. The current price of 447.05 is below the 20-day moving average (MA) of 475.50, below the 50-day MA of 495.90, and below the 200-day MA of 544.43, indicating a bearish trend. The MACD of -17.03 indicates Positive momentum. The RSI at 28.77 is Positive, neither overbought nor oversold. The STOCH value of 27.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ROP.

Roper Technologies Risk Analysis

Roper Technologies disclosed 23 risk factors in its most recent earnings report. Roper Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Roper Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$45.59B31.2414.63%0.61%3.67%10.44%
77
Outperform
$97.96B28.5527.30%0.84%0.22%26.66%
73
Outperform
$74.54B32.7310.91%1.59%2.97%
72
Outperform
$40.77B42.5524.22%1.42%0.99%
71
Outperform
$47.99B30.748.16%0.74%13.95%6.80%
71
Outperform
$71.09B23.7891.71%2.52%-0.41%-10.88%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ROP
Roper Technologies
447.05
-117.09
-20.76%
AME
Ametek
197.25
7.59
4.00%
EMR
Emerson Electric Company
129.49
4.33
3.46%
ITW
Illinois Tool Works
245.49
-19.94
-7.51%
PH
Parker Hannifin
844.01
155.15
22.52%
ROK
Rockwell Automation
373.49
105.97
39.61%

Roper Technologies Corporate Events

Roper Technologies Reports Strong Q3 2025 Growth
Oct 24, 2025

Roper Technologies, a prominent player in the vertical software and technology-enabled products sector, has reported its financial results for the third quarter of 2025, showcasing significant growth and strategic advancements. The company, known for its disciplined acquisition strategy, continues to expand its market presence through strategic investments.

Roper Technologies’ Earnings Call Highlights Growth and AI Advances
Oct 24, 2025

Roper Technologies’ recent earnings call conveyed a positive sentiment, underscored by robust financial growth and significant advancements in artificial intelligence. The company also highlighted strategic initiatives such as share repurchase and mergers and acquisitions (M&A) activity. However, challenges were noted in areas like government contracting, tariffs affecting Neptune, and a sluggish freight market impacting DAT.

Business Operations and StrategyPrivate Placements and Financing
Roper Technologies Issues $2 Billion in Senior Notes
Positive
Aug 12, 2025

On August 12, 2025, Roper Technologies, Inc. completed the issuance and sale of $2 billion in senior unsecured notes, including $500 million due in 2028 at 4.250%, $500 million due in 2030 at 4.450%, and $1 billion due in 2035 at 5.100%. This strategic financial move, facilitated by major underwriters like BofA Securities, J.P. Morgan Securities, and Wells Fargo Securities, is expected to enhance Roper’s financial flexibility and support its long-term growth initiatives.

The most recent analyst rating on (ROP) stock is a Buy with a $655.00 price target. To see the full list of analyst forecasts on Roper Technologies stock, see the ROP Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 26, 2025