Roper forecasts 2026 revenue, profit below estimates on soft government contract demand

Reuters
01/27
Roper forecasts 2026 revenue, profit below estimates on soft government contract demand

Jan 27 (Reuters) - Roper Technologies ROP.O forecast 2026 revenue and profit below Wall Street estimates on Tuesday, citing softer demand at its government contracting unit Deltek, sending shares of the company down 14.9%.

The software firm forecast total revenue growth of about 8% for the year, compared with estimates of around 9%.

The outlook reflected a "more appropriate and balanced" view after recent quarters disappointed amid uncertainty at Deltek, said CEO Neil Hunn.

Future U.S. government shutdowns could impact the business further, with Deltek having recorded a slowdown in September after agencies halted activity ahead of the most recent shutdown.

Roper also expects adjusted earnings between $21.30 and $21.55 per share in 2026, lower than analysts' estimates of $21.65 per share, according to data compiled by LSEG.

For the first quarter of the year, the company forecast adjusted earnings of $4.95 to $5.00 per share, below estimates of $5.18 per share.

Roper had cut its 2025 profit forecast in October largely due to higher costs related to recent acquisitions.

Meanwhile, the company reported revenue of $2.06 billion for the quarter ended December 31, marginally missing analysts' estimates of $2.08 billion.

Hunn said the results were weighed down by weaker perpetual license revenue, which led to lower organic growth in the application software segment.

Adjusted earnings for the quarter stood at $5.21 per share, beating estimates of $5.14 per share.

(Reporting by Arnav Mishra in Bengaluru; Editing by Jonathan Ananda)

((Arnav.Mishra@thomsonreuters.com;))

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