We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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%.
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.
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.
Image: Bigstock
Strength in Network Software Drives Roper: Can the Momentum Sustain?
Key Takeaways
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%.
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.
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.
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.