Goldman Sachs has reduced its target price for Roper Industries (NASDAQ:ROP) from $477.00 to $440.00 but left its rating on the shares at Buy. The bank's revision comes after Roper's fourth-quarter 2025 earnings report, which showed mixed segment performance and overall results that failed to meaningfully exceed market expectations.
Roper's share price has moved noticeably lower - the stock slid 11.56% over the last week and is trading at $360.37, close to a 52-week low of $345.93. The market reaction reflects investor concern about the company's near-term growth trajectory following the quarter.
Company-level and segment details from the quarter show a nuanced picture. Technology Enabled Products reported adjusted EBITDA about 1% above consensus, while Application Software and Network Software missed consensus by around 1% and 2% respectively. On a consolidated basis, InvestingPro data puts Roper's trailing twelve-month total EBITDA at $3.13 billion and indicates a gross profit margin of 69.24%.
Sales momentum in the quarter varied by business line but remained in the mid-single-digit range across Roper's three segments. The firm reported organic growth of roughly 4% in Application Software, about 5% in Network Software, and roughly 5% in Technology Enabled Products. Over the last twelve months, Roper's revenue rose 12.26%, with total revenue reaching $7.9 billion.
Looking ahead, Roper set fiscal year 2026 earnings-per-share guidance at $21.30 to $21.55, grounded on an expectation of approximately 5-6% organic growth. The company's outlook explicitly assumes several steady-state conditions - no recovery in Deltek GovCon demand, no rebound in freight markets at DAT, and only modest top-line weakness at Neptune.
Market consensus, as reflected in InvestingPro data, currently places analysts' FY2026 EPS forecast at $21.64, marginally above Roper's own guidance range. In response to the latest results and outlook, Goldman Sachs trimmed its FY26 and FY27 EPS estimates to $21.50 and $23.35 respectively, and added a FY28 EPS estimate of $25.30.
Goldman's commentary accompanying the revisions highlighted valuation dynamics - while Roper looks inexpensive versus its historical levels, the firm does not expect a re-rating of the shares unless the company can demonstrate an acceleration in growth.
Third-party valuations and analyst action in the wake of the quarter were varied. InvestingPro's Fair Value assessment indicates Roper is currently undervalued, and the stock trades at a price-to-earnings multiple of 26. The company also maintains a long-standing record of shareholder payouts - a 35-year history of consistent dividend payments and a current yield of 1.01%.
Several brokerages adjusted their views and targets after the earnings release. Truist Securities cut its price target from $650.00 to $550.00, citing concerns about organic growth and issues related to non-recurring revenue and bookings at Deltek. Raymond James trimmed its target to $500.00 from $575.00 while keeping a Strong Buy rating, pointing to valuation concerns. TD Cowen reduced its target to $550.00 from $625.00 while acknowledging Roper's EPS beat and alignment with the higher end of guidance. Mizuho lowered its target to $365.00 from $419.00 and noted competitive risks tied to AI along with effects from the prolonged government shutdown on Deltek. Stifel moved to downgrade the stock from Buy to Hold and cut its target to $385.00 following the underwhelming quarter.
These analyst moves illustrate a range of perspectives on Roper's near-term performance and valuation - some firms remain constructive but are moderating targets, while others have grown more cautious about the stock's ability to deliver above-market growth.
Context for investors
Roper's results indicate steady but unspectacular organic growth in its software and technology-enabled businesses. The company has provided conservative assumptions in its FY2026 guidance, and several analysts have adjusted their outlooks to reflect persistent demand softness in specific end markets identified by Roper.
How the business performs relative to the company's assumptions - particularly demand at Deltek GovCon, freight market dynamics at DAT, and Neptune's top-line trends - will determine whether analysts regain conviction and whether valuation multiples expand.
Key points
- Goldman Sachs lowered Roper's price target to $440 from $477 but maintained a Buy rating while trimming FY26 and FY27 EPS estimates.
- Roper reported mid-single-digit organic growth across its three segments in Q4, with total revenue of $7.9 billion and trailing EBITDA of $3.13 billion per InvestingPro data.
- Analysts from multiple firms revised targets and ratings after the quarter, reflecting mixed views on Roper's growth prospects and valuation.
Risks and uncertainties
- Demand at Deltek GovCon could remain weak - Roper's guidance assumes no near-term improvement in that market.
- Freight market conditions at DAT may fail to recover - the firm's outlook assumes no improvement in freight markets, which would weigh on that segment's revenue.
- Competitive pressures and sector-specific dynamics - Mizuho cited competitive risks related to AI, and several analysts highlighted bookings and non-recurring revenue issues at Deltek as points of concern.
Investors should monitor incoming results and segment-level performance against Roper's stated assumptions to assess whether the company can exceed the cautious path implied in its FY2026 guidance.