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ROP Benefits From Strength in Application Software Unit: Can the Momentum Sustain?
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Key Takeaways
ROP's Application Software revenues rose 8% year over year to $1.18 billion in Q2 2026.
Aderant and Deltek gained from higher SaaS adoption and GenAI innovation across key workflows.
Vertafore ARR growth and CentralReach recurring revenue momentum support long-term expansion.
Roper Technologies, Inc. (ROP - Free Report) is gaining from continued momentum in the Application Software segment. In the second quarter of 2026, ROP’s Application Software segment accounted for nearly 56% of Roper’s total revenues. The segment revenues grew 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 driving the segment’s performance. Higher adoption of SaaS solutions and continued GenAI innovation in areas such as collections, billing appeals, talent & time are supporting growth at the Aderant business. Healthy demand for SaaS offerings in the private sector continues to benefit the Deltek business.
The Vertafore business continues to benefit from strong enterprise delivery capabilities for its largest customers, driving healthy annual recurring revenue (ARR) growth. Also, solid momentum in the CentralReach business, supported by higher recurring revenues, remains a key growth driver for the segment.
Solid momentum in the project-based private sector, higher education, property and casualty insurance, and legal markets also bodes well for Roper’s segment’s growth. Roper expects the segment to maintain solid momentum, with organic revenue growth projected to remain above the mid-single-digit range for the rest of 2026. The Application Software segment is expected to remain a key long-term growth driver, supported by recurring subscription revenues, increasing software adoption and continued product enhancements.
Segment Snapshot of ROP’s Peers
Among its major peers, 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.
Roper's other peer, 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.
ROP’s Price Performance, Valuation & Estimates
Shares of Roper have gained 13.8% in the past three months compared with the industry’s growth of 15.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, ROP is trading at a forward price-to-earnings ratio of 15.86X compared with the industry’s average of 18.43X. Roper carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ROP’s 2026 earnings has increased over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
ROP Benefits From Strength in Application Software Unit: Can the Momentum Sustain?
Key Takeaways
Roper Technologies, Inc. (ROP - Free Report) is gaining from continued momentum in the Application Software segment. In the second quarter of 2026, ROP’s Application Software segment accounted for nearly 56% of Roper’s total revenues. The segment revenues grew 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 driving the segment’s performance. Higher adoption of SaaS solutions and continued GenAI innovation in areas such as collections, billing appeals, talent & time are supporting growth at the Aderant business. Healthy demand for SaaS offerings in the private sector continues to benefit the Deltek business.
The Vertafore business continues to benefit from strong enterprise delivery capabilities for its largest customers, driving healthy annual recurring revenue (ARR) growth. Also, solid momentum in the CentralReach business, supported by higher recurring revenues, remains a key growth driver for the segment.
Solid momentum in the project-based private sector, higher education, property and casualty insurance, and legal markets also bodes well for Roper’s segment’s growth. Roper expects the segment to maintain solid momentum, with organic revenue growth projected to remain above the mid-single-digit range for the rest of 2026. The Application Software segment is expected to remain a key long-term growth driver, supported by recurring subscription revenues, increasing software adoption and continued product enhancements.
Segment Snapshot of ROP’s Peers
Among its major peers, 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.
Roper's other peer, 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.
ROP’s Price Performance, Valuation & Estimates
Shares of Roper have gained 13.8% in the past three months compared with the industry’s growth of 15.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, ROP is trading at a forward price-to-earnings ratio of 15.86X compared with the industry’s average of 18.43X. Roper carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ROP’s 2026 earnings has increased 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.