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.
ROP Gains From Robust Application Software Unit: A Sign for More Upside?
Read MoreHide Full Article
Key Takeaways
Roper's Application Software revenues rose 8% to $1.18 billion in the second quarter of 2026.
Aderant, Deltek and CentralReach are supporting segment growth through SaaS adoption and innovation.
Roper expects Application Software organic revenue growth above mid-single digits through the rest of 2026.
Roper Technologies, Inc. (ROP - Free Report) is witnessing persistent strength in the Application Software segment. In the second quarter of 2026, the Application Software segment accounted for nearly 56% of Roper’s total revenues. Segment revenues increased 8% year over year to $1.18 billion. Organic revenues also increased 5% in the same period.
Strength across its Aderant, Deltek, Vertafore and CentralReach businesses has been supporting the segment’s results. The growing adoption of SaaS solutions and continued GenAI innovation (collections, billing appeals, talent & time) are key catalysts to Aderant’s growth. Solid demand for SaaS solutions in the private sector bodes well for the Deltek business.
The Vertafore business is gaining from excellent enterprise delivery capabilities to the largest customers in the market, which has also resulted in strong annual recurring revenue (ARR) growth. Solid momentum in the CentralReach business, driven by higher recurring revenues, also bodes well for the segment.
Solid momentum in the project-based private sector, higher education, property and casualty insurance, and legal markets also bodes well for the segment’s growth. Roper expects the segment to maintain solid momentum by delivering organic revenue growth of more than mid-single digits for the rest of 2026. The Application Software segment is well-positioned to drive Roper’s long-term growth and profitability, supported by recurring subscription revenues, broader software adoption and ongoing product enhancements.
Segment Snapshot of ROP’s Peers
Among its major peers, Atlassian Corp.’s (TEAM - Free Report) AI-powered capabilities are seeing rapid adoption. Atlassian’s AI-powered Rovo platform and automation tools are boosting growth in its premium and enterprise offerings, driven by strong demand for AI-based workflows. Atlassian’s focus on adding generative AI features to its collaboration software is expected to support long-term revenue growth.
Roper's other peer, Autodesk, Inc.’s (ADSK - Free Report) performance is gaining from new business growth, steady subscription renewal rates and strong competitive performance. Higher demand for its cloud-based products, mobile solutions and design suites also bodes well for Autodesk. Autodesk’s aggressive push into cloud infrastructure and AI integration demands substantial capital deployment for data centers, computing resources and specialized talent acquisition.
ROP’s Price Performance, Valuation & Estimates
Shares of Roper have gained 14% in the past month compared with the industry’s growth of 13.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, ROP is trading at a forward price-to-earnings ratio of 16.91X compared with the industry’s average of 18.93X. Roper carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ROP’s 2026 earnings has increased 4.7% over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
ROP Gains From Robust Application Software Unit: A Sign for More Upside?
Key Takeaways
Roper Technologies, Inc. (ROP - Free Report) is witnessing persistent strength in the Application Software segment. In the second quarter of 2026, the Application Software segment accounted for nearly 56% of Roper’s total revenues. Segment revenues increased 8% year over year to $1.18 billion. Organic revenues also increased 5% in the same period.
Strength across its Aderant, Deltek, Vertafore and CentralReach businesses has been supporting the segment’s results. The growing adoption of SaaS solutions and continued GenAI innovation (collections, billing appeals, talent & time) are key catalysts to Aderant’s growth. Solid demand for SaaS solutions in the private sector bodes well for the Deltek business.
The Vertafore business is gaining from excellent enterprise delivery capabilities to the largest customers in the market, which has also resulted in strong annual recurring revenue (ARR) growth. Solid momentum in the CentralReach business, driven by higher recurring revenues, also bodes well for the segment.
Solid momentum in the project-based private sector, higher education, property and casualty insurance, and legal markets also bodes well for the segment’s growth. Roper expects the segment to maintain solid momentum by delivering organic revenue growth of more than mid-single digits for the rest of 2026. The Application Software segment is well-positioned to drive Roper’s long-term growth and profitability, supported by recurring subscription revenues, broader software adoption and ongoing product enhancements.
Segment Snapshot of ROP’s Peers
Among its major peers, Atlassian Corp.’s (TEAM - Free Report) AI-powered capabilities are seeing rapid adoption. Atlassian’s AI-powered Rovo platform and automation tools are boosting growth in its premium and enterprise offerings, driven by strong demand for AI-based workflows. Atlassian’s focus on adding generative AI features to its collaboration software is expected to support long-term revenue growth.
Roper's other peer, Autodesk, Inc.’s (ADSK - Free Report) performance is gaining from new business growth, steady subscription renewal rates and strong competitive performance. Higher demand for its cloud-based products, mobile solutions and design suites also bodes well for Autodesk. Autodesk’s aggressive push into cloud infrastructure and AI integration demands substantial capital deployment for data centers, computing resources and specialized talent acquisition.
ROP’s Price Performance, Valuation & Estimates
Shares of Roper have gained 14% in the past month compared with the industry’s growth of 13.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, ROP is trading at a forward price-to-earnings ratio of 16.91X compared with the industry’s average of 18.93X. Roper carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ROP’s 2026 earnings has increased 4.7% 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.