The Application Software segment remains the cornerstone of Roper Technologies, Inc.’s ROP growth strategy, delivering consistent expansion supported by healthy demand across its Aderant, Deltek, Vertafore, PowerPlan and CentralReach businesses. Demand remains strong across key end markets, including private-sector project management, higher education, property and casualty insurance, and legal services.
The segment is also benefiting from increasing adoption of SaaS offerings and ongoing GenAI innovation. Aderant is gaining from strong demand for its SaaS solutions, while Deltek continues to see solid traction in the private sector. Vertafore’s growth is being fueled by strong execution with large enterprise customers, leading to robust annual recurring revenue (ARR) expansion. Meanwhile, PowerPlan is supported by high customer retention and growing uptake of new SaaS products, and CentralReach continues to generate strong recurring revenue growth.
In the first quarter of 2026, the Application Software segment accounted for nearly 57% of Roper’s total revenues. Segment revenues increased 11.5% year over year to $1.19 billion. This performance highlights the segment’s growing scale and strategic importance within the company’s portfolio.
Looking ahead, Roper expects the segment to maintain solid momentum by delivering organic revenue growth of more than mid-single digits through the remainder of 2026, supported by its subscription-based revenue streams, expanding software adoption and continued product enhancements. These factors position the Application Software segment to remain a major contributor to Roper’s long-term growth and profitability.
Segment Snapshot of ROP’s Peers
Among its major peers, Atlassian Corp.’s TEAM 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 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 lost 9.4% in the past three months compared with the industry’s decline of 4.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, ROP is trading at a forward price-to-earnings ratio of 14.56X compared with the industry’s average of 18.91X. Roper carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ROP’s 2026 earnings has increased 2.2% over the past 60 days.
Image Source: Zacks Investment Research
Roper currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Roper Technologies, Inc. (ROP): Free Stock Analysis Report
Autodesk, Inc. (ADSK): Free Stock Analysis Report
Atlassian Corporation PLC (TEAM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).