New York, Jan 27, 2026, 19:58 (EST) — After-hours
Roper Technologies shares fell nearly 10% in after-hours trading on Tuesday after the company forecast 2026 profit and revenue growth below Wall Street expectations and flagged softer demand at its Deltek government-contracting unit. The stock was down 9.7% at $369.27, after swinging between $409.99 and $346.36 earlier in the session. (Reuters)
The guidance reset matters because Roper has been priced like a steady compounder — a portfolio of niche software assets that throws off cash and keeps buying more. When the outlook wobbles, the market tends to move fast, especially in names that trade at a premium for predictability.
Deltek is the pressure point again. A slowdown there can spill into the rest of the story, because it is one of the bigger places where budget timing and customer caution show up quickly in orders and license revenue.
In a results release, Roper reported fourth-quarter revenue up 10% to $2.06 billion and adjusted diluted earnings per share (DEPS) of $5.21, while free cash flow rose 4% to $714 million. It projected full-year 2026 adjusted DEPS of $21.30 to $21.55 on total revenue growth of about 8% and organic revenue growth of 5% to 6%, and said it repurchased 1.12 million shares for $500 million in 2025 while deploying $3.3 billion on acquisitions. (SEC)
On the earnings call, executives said the 2026 outlook does not assume improvement at Deltek (GovCon) or DAT, and does not assume a recovery at Neptune, while excluding a meaningful revenue uplift from AI development work. Enterprise software bookings grew in the low double-digit range for 2025, though Deltek bookings were down in the low double-digit area in the fourth quarter, according to the call transcript. (The Motley Fool)
“Organic” growth is the company’s revenue change excluding acquisitions (and other items like currency). “Adjusted” results strip out certain costs and non-cash items to give what management says is a clearer look at underlying performance, while “bookings” refers to new business signed, not revenue already recognized.
Analyst reaction was swift. Stifel downgraded Roper to “Hold” from “Buy” and cut its price target to $385 from $550, citing another quarter of softer Deltek performance alongside weakness tied to Neptune and lower networking perpetual-license revenue. (TipRanks)
Not everyone turned cautious. William Blair said the selloff looked overdone, pointing to stronger recurring subscription momentum and bookings even as it cited government shutdown impacts on Deltek license timing. (TipRanks)
The risk for bulls is simple: a second-half pickup is harder to sell if Deltek keeps slipping or if government funding disruptions keep pushing customers to the sidelines. If that plays out, Roper could face another round of estimate cuts and a tougher debate on valuation.
Traders will watch on Wednesday whether the drop carries into the cash session and whether more brokers follow with downgrades or target cuts. The next hard catalyst is the company’s first-quarter update, expected around April 27, when investors will look for fresh reads on Deltek demand and bookings trends. (Public)
