Back to top

Image: Bigstock

Strength in Network Software Drives Roper: Can the Momentum Sustain?

Read MoreHide Full Article

Key Takeaways

  • ROP's Network Software growth is fueled by ConstructConnect, DAT ARPU gains and Loadlink integration.
  • SoftWriters, MHA and SHP healthcare units also supported segment growth in early 2025.
  • ROP raised 2025 sales outlook to 12.9% growth, with organic revenues expected to be up 6-7%.

Roper Technologies, Inc. (ROP - Free Report) is witnessing solid momentum in the Network Software segment, driven by strength across construction and freight match markets. Solid demand for the company’s Gen AI-powered solutions within the ConstructConnect business and strong customer retention are fostering the growth of the segment.

Increased average revenue per user (ARPU), driven by a rise in product packaging and continued customer cross-sell activity, is supporting its DAT business. The integration of the Canadian freight match business, Loadlink, also bodes well for it. Continued growth in SoftWriters, MHA and SHP alternate site healthcare businesses has been augmenting the segment’s performance as well. The company expects mid-single-digit organic revenue growth for the segment in the second half of 2025.

Also, the growing popularity of its products and solutions across the Deltek, Vertafore, PowerPlan and Aderant businesses is driving ROP’s Application Software segment. Driven by strength across its businesses, Roper has increased its total revenue outlook. For 2025, the company expects total revenues to increase approximately 12.9% from the year-ago level compared with about 12% expected earlier. Organic revenues are estimated to rise 6-7% year over year.

Performance Snapshot of ROP’s Peers

Among its major peers, Agilent Technologies, Inc. (A - Free Report) has a significant exposure to the healthcare industry, which holds long-term prospects. Agilent’s strength in liquid chromatography systems and components and liquid chromatography mass spectrometry systems remains a plus. Also, strengthening demand for RF test equipment by medical device manufacturers remains a tailwind for Agilent.

Another peer, Honeywell International Inc. (HON - Free Report) , has been witnessing persistent weakness in the Industrial Automation segment. Softness in the productivity solutions and services business, owing to a decrease in license and settlement payments, remains a concern for Honeywell’s segment. In second-quarter 2025, Honeywell’s Industrial Automation segment’s sales declined 5% on a year-over-year basis.

ROP’s Price Performance, Valuation and Estimates

Shares of Roper have lost 9.5% in the past year compared with the industry’s decline of 11.8%.

Zacks Investment Research
Image Source: Zacks Investment Research

From a valuation standpoint, ROP is trading at a forward price-to-earnings ratio of 24.14X compared with the industry’s average of 26.40X. Roper carries a Value Score of D.

Zacks Investment Research
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ROP’s 2025 and 2026 earnings has been on the rise over the past 60 days.

Zacks Investment Research
Image Source: Zacks Investment Research

Roper currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Honeywell International Inc. (HON) - free report >>

Agilent Technologies, Inc. (A) - free report >>

Roper Technologies, Inc. (ROP) - free report >>

Published in