Roper’s Application Software Strength Holds Firm: More Upside Ahead?

Roper Technologies, Inc. ROP is benefiting from solid momentum in the Application Software segment, driven by strength in the acute healthcare, property and casualty insurance and legal markets. In the third quarter of 2025, revenues from the Application Software segment accounted for 57.4% of Roper’s total business. In the same quarter, total revenues from this segment surged 18% year over year while its organic revenues grew 6%.

The segment is witnessing growth across its Aderant, Deltek, Vertafore and PowerPlan businesses. The Aderant business is benefiting from growing adoption of SaaS solutions and continued GenAI innovation. 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.

Strong customer retention and adoption of new SaaS solutions bode well for the PowerPlan business. Solid momentum in the TransAct and CBORD businesses, driven by strong market execution, is also aiding the segment. As a result, Roper expects organic revenues from this segment to increase in the mid-single digits in the fourth quarter of 2025. Given its steady performance, the segment is poised to remain ROP’s biggest contributor to growth in the near term.

Among its major peers, Autodesk, Inc. ADSK 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. However, muted growth in Maintenance revenues due to the continued migration of maintenance plans to subscriptions is a concern for Autodesk.

It’s another peer, Atlassian Corp. TEAM, is benefiting from the rising demand for remote working tools amid the hybrid work trend and accelerated digital transformation. An improvement in product quality and performance, multiple product launches, transparent pricing and a unique sales strategy also bode well for Atlassian. During the first quarter of fiscal 2026 (ended September 2025), Atlassian’s Cloud revenues surged 26% year over year.

Shares of Roper have lost 20.9% in the past year compared with the industry’s decline of 20.8%.

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From a valuation standpoint, ROP is trading at a forward price-to-earnings ratio of 20.99X compared with the industry’s average of 24.81X. Roper carries a Value Score of D.