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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