NASDAQInformation TechnologySoftware - ApplicationSnapshot 2026-08-31
Reading ROP? Create a free portfolio, then add this holding for ongoing Reports and tracking. Track it in a free portfolio. No credit card.
Create your account →Intact: The reason to own it still holds.
Roper Technologies grows earnings steadily with 11% revenue growth last quarter. The company raised full-year EPS guidance to about $22. Profit margins remain healthy and it actively buys back shares, repurchasing $1.5 billion in Q1. The stock trades cheap with a PE of 19 versus peers at 39.
Growth could slow if demand weakens or AI product expansion fails. Rising debt and recent credit agreement changes may pressure capital allocation. A soft guidance posture signals caution on near-term outlook.
The market prices in about 8% revenue growth and a 25% discount to our $493 fair value. Our fair value is 12% above the Street median, reflecting confidence in Roper's growth and buyback execution.
Breaks if: AI product expansion stalls or fails to gain traction
Breaks if: Adjusted EPS falls below $21.80 in FY26
Breaks if: Revenue growth falls below 8% YoY next year
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
ROP is positioned as a durable compounder with a focus on disciplined capital deployment and organic growth. The current thesis state remains intact, supported by recent earnings beats and a commitment to share repurchases and acquisitions.
The market currently prices ROP as cheap compared to its peers, reflecting a low expectations gap. However, there is a fragility due to weak execution quality, which could impact future performance.
Fundamentals are likely to show steady organic revenue growth near the management target of approximately 6%. Recent financial performance has been neutral, but there is an elevated risk due to potential sector challenges.
The thesis hinges on the performance of sector bellwethers like SAP, CRM, and NOW. If these companies continue to exceed earnings expectations, ROP could benefit, but any negative guidance from them could lead to a decline in momentum.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this view. ROP raised its full year adjusted earnings guidance. It also aims for organic revenue growth of about 6%. There are no new threats to the thesis.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Share repurchases fall significantly below $1.5 billion in Q1 2026
Roper has expanded its share repurchase program with an additional $3 billion authorized, bringing remaining capacity to $3.8 billion.
In the next 1 to 3 years, ROP's performance will depend on both its execution and the broader tech sector's health. Not investment advice.
