Updated 2/23/26
With roots going back to 1981, this Sarasota-based business has evolved far beyond its industrial beginnings. Today, Roper owns a diverse portfolio of software and tech-driven companies, many of which operate in highly specialized markets like healthcare, transportation, and financial services.
What sets Roper apart isn’t just the quality of its businesses—it’s the way they’re managed. The company has a clear focus on acquiring high-margin, cash-flow-rich businesses and giving them the room to grow. The result? A company that’s incredibly resilient, consistently profitable, and surprisingly rewarding for dividend-focused investors.
Recent Events
Roper’s most recent numbers continue to reflect the kind of steady execution that has made this company a fixture in quality-focused portfolios. Revenue has climbed to just under $7.9 billion on a trailing twelve-month basis, with net income reaching $1.54 billion. Earnings per share came in at $14.20, and the company is generating $2.17 billion in free cash flow—numbers that speak to the durability of Roper’s recurring-revenue model.
The stock has pulled back meaningfully from its 52-week high of $595.17 and currently trades around $335.70, sitting near the lower end of its 52-week range of $313.07 to $595.17. That kind of decline tends to draw attention from long-term investors, and for good reason—the underlying business remains intact. Roper continues to pursue its disciplined acquisition strategy, targeting vertical market software businesses with strong retention rates and predictable revenue streams.
Key Dividend Metrics
💸 Forward Dividend Yield: 1.01%
📈 Annual Dividend Rate: $3.64
💰 Last Quarterly Dividend: $0.91
🧮 Payout Ratio: 23.24%
🗓️ Most Recent Ex-Dividend Date: January 2, 2026
🎯 Dividend Growth Streak: 32 years and counting
Dividend Overview
At first glance, a 1.01% yield isn’t going to turn heads in a market full of higher-income options. But context matters here. Roper’s yield has actually moved higher alongside the stock’s price decline, and the $3.64 annual dividend represents a meaningful step up from where the company was just a year ago. The most recent quarterly payment of $0.91 marks the latest in a long, unbroken chain of increases stretching back more than three decades.
This isn’t a company chasing yield for its own sake. Roper takes a deliberate approach, prioritizing steady, sustainable increases over dramatic dividend hikes. The philosophy is consistent with the broader business model: low drama, high quality, long runway. For investors willing to look past the yield number, the track record makes a compelling case.
Dividend Growth and Safety
The dividend growth history here tells an encouraging story. Roper held its quarterly payment at $0.683 through most of 2023, then raised it to $0.75 starting in January 2024—a 9.8% increase. It raised the dividend again to $0.825 in January 2025, another 10% bump, and then pushed it further to $0.91 per quarter beginning with the January 2026 payment—a 10.3% increase. Three consecutive double-digit annual raises underscore a management team that’s serious about rewarding shareholders at a pace that outpaces inflation.
The payout ratio of just 23.24% is one of the lowest among dividend growers with streaks of this length. That conservatism is intentional. With $2.17 billion in free cash flow, Roper covers its annual dividend obligation many times over—the total annual payout based on current shares outstanding is a small fraction of that figure. Even if business conditions softened meaningfully, the dividend has enormous room before it would face any pressure. That’s the kind of safety margin that lets long-term investors sleep soundly.
Analyst Ratings
With no fresh analyst price targets available at the time of this update, the most useful lens for evaluating sentiment is the fundamental picture itself. The stock’s steep decline from its 52-week high of $595.17 to the current level near $335.70 reflects a significant market re-rating, likely driven by a combination of valuation compression across the software sector and broader macro pressures on growth-oriented names.
At a P/E of 23.64, Roper is actually trading at one of its more accessible valuations in recent memory. That’s a notable shift for a company that has historically commanded trailing multiples well above 40. Investors who followed ROP at $577 a year ago were paying a steep premium for the same business that’s now available at a substantial discount. The profit margin of 19.44% and free cash flow generation of $2.17 billion suggest the underlying earnings power hasn’t deteriorated—the valuation has simply reset. For dividend growth investors focused on entry price and long-term total return, the current setup looks more attractive than it has in years.
Earning Report Summary
Revenue and Earnings Remain Solid
Roper’s trailing twelve-month revenue of $7.9 billion reflects continued top-line growth, building on the $7.04 billion full-year figure reported for 2024. Net income of $1.54 billion and earnings per share of $14.20 on a GAAP basis confirm that profitability remains intact, even as the stock has experienced significant selling pressure. The profit margin of 19.44% is consistent with Roper’s historical performance as a high-quality, asset-light software business.
Cash Flow Remains the Cornerstone
Operating cash flow of $2.54 billion and free cash flow of $2.17 billion are the numbers that matter most for dividend investors. These figures demonstrate that Roper’s earnings are highly convertible to cash—a hallmark of its vertical market software model, where customers pay upfront or on subscription and switching costs are high. The company doesn’t need to spend heavily on capital expenditures to sustain or grow the business, which is precisely why the payout ratio can stay so low even as the dividend grows.
Profitability Metrics Hold Up
Return on equity of 7.93% and return on assets of 4.24% are consistent with prior periods. These aren’t flashy numbers, but they reflect a business that generates real, durable returns on the capital it deploys—whether through organic growth or acquisitions. The book value per share of $186.51 gives additional context for the price-to-book ratio of 1.80, which is modest for a software-oriented business of this quality.
Outlook Remains Constructive
Roper entered 2025 with guidance for adjusted EPS of $19.75 to $20.00 and revenue growth of more than 10%. While updated 2026 guidance will be watched closely, the company’s model—built on recurring software revenues, disciplined cost management, and selective acquisitions—provides a stable foundation. There’s no indication from the financial data that the core earnings engine has weakened in any material way.
Financial Health and Stability
Roper’s financial profile remains sound. Return on equity of 7.93% and return on assets of 4.24% are respectable for a business of this structure. The profit margin of 19.44% reflects the high-quality nature of its software and technology businesses, which tend to carry minimal incremental costs once the platform is built.
Debt remains a consideration—Roper has historically carried leverage associated with its acquisition strategy—but the free cash flow generation of $2.17 billion provides ample capacity to service obligations and continue returning capital to shareholders. The beta of 0.93 suggests the stock moves roughly in line with the broader market, which is somewhat surprising given the severity of its recent price decline and speaks to the long-term stability of the underlying business in the eyes of institutional investors.
Valuation and Stock Performance
The valuation picture has changed dramatically since the last update. A stock that was trading at $577 with a trailing P/E north of 40 is now priced at $335.70 with a P/E of just 23.64. That’s a compression of nearly 40% in the multiple alone, and it represents a meaningful shift in the opportunity set for prospective investors.
The price-to-book ratio of 1.80 is also lower than Roper has typically traded, reinforcing the sense that the market has reset expectations sharply. Whether that reset is justified by a genuine change in business fundamentals or reflects broader sector sentiment is the central question for new investors. Based on the available financial data—$2.17 billion in free cash flow, a 19.44% profit margin, and a payout ratio under 24%—the business itself looks largely unchanged. The stock is currently sitting near the low end of its 52-week range of $313.07 to $595.17, which historically has been a constructive starting point for long-term holders of high-quality compounders.
Risks and Considerations
The most immediate risk for current shareholders is continued price weakness. A stock that has already fallen from $595 to $335 can always go lower, and with short interest at roughly 2.27 million shares, there is a contingent of the market betting on further downside. Investors considering a new position should be prepared for ongoing volatility while the stock finds its footing.
Roper’s acquisition-driven growth model remains a structural consideration. The strategy has an exceptional track record, but each new deal carries integration risk and the possibility of overpaying in a competitive deal environment. Higher interest rates, if sustained, increase the cost of debt-financed acquisitions and can compress the returns on capital that make the model so attractive.
Competitive dynamics in vertical market software are also worth monitoring. Roper’s niche focus provides meaningful moats in most of its end markets, but larger technology platforms continue to expand their reach. Finally, the yield—now at 1.01%—remains modest in absolute terms, and investors who need current income should understand that Roper’s primary value proposition is dividend growth over time, not immediate income generation.
Final Thoughts
Roper Technologies isn’t your typical dividend stock. It doesn’t offer high yield, and it rarely grabs headlines. What it does offer is something more valuable over time: consistency. Steady earnings, predictable free cash flow, and 32 consecutive years of dividend growth form the backbone of an investment case that doesn’t require a lot of faith—just patience.
The current price near $335 presents a materially different entry point than anything investors have seen from this company in recent years. The business generating $2.17 billion in free cash flow and raising its dividend by more than 10% annually is the same business that was priced at $595 not long ago. For dividend growth investors with a multi-year horizon, that kind of setup deserves serious attention.
If you value quality, consistency, and the compounding power of a growing dividend backed by durable cash flows, Roper Technologies at current levels may be one of the more interesting opportunities in the software sector right now.