Reasons to Hold Roper Technologies in Your Portfolio Now

Roper Technologies, Inc. ROP is benefiting from persistent strength in the Application Software segment, driven by strength in its Deltek, Vertafore, PowerPlan and Aderant businesses. Growing adoption of SaaS solutions and continued GenAI innovation have been driving the performance of these businesses. Also, solid demand for Gen AI-powered solutions within the ConstructConnect business and strong customer retention are fostering the growth of the Network Software segment.

The solid performance of the Neptune business due to continued demand for ultrasonic meters and rising demand for cloud-based data and billing software solutions is fostering the growth of the Technology-enabled Products segment. The solid performance of the Verathon business due to strength across single-use BFlex & GlideScope offerings bodes well for the segment.

Driven by strength across its businesses, Roper provided bullish guidance. For 2025, the company expects organic revenues to increase 6-7% from the year-ago level.

The company intends to strengthen and expand its businesses through acquisitions. In July 2025, Roper inked a deal to acquire Subsplash, a provider of cloud-based solutions. The inclusion of Subsplash’s modern technology platform, strong recurring revenue base and software-led payments capability is expected to support long-term growth and margin expansion for the company. 

In April 2025, Roper acquired CentralReach, a provider of SaaS solutions for Applied Behavior Analysis treatment. The inclusion of CentralReach’s modern GenAI-enabled platform and its strong customer retention capability is expected to boost the performance of its Application Software segment. It’s worth noting that acquisitions boosted the company’s sales by 6% in the second quarter of 2025.

Roper remains committed to rewarding its shareholders through dividend payouts. In the first six months of 2025, the company rewarded its shareholders with a dividend payment of $177.2 million, up 10.3% year over year. It’s worth noting that in November 2024, it hiked its quarterly dividend by 10%.

ROP Stock’s Price Performance

Year to date, this Zacks Rank #3 (Hold) company has gained 0.8% against the industry’s 16.2% decline.

However, Roper has been witnessing high costs and expenses. For instance, in the second quarter, the cost of sales increased 14.3% year over year while selling, general and administrative expenses climbed 14%. Higher costs related to the amortization of acquired assets are pushing up operating expenses.

High debt levels are an added concern for the company. Exiting the second quarter, it had a long-term debt (net of the current portion) of $7.86 billion. Its current portion of long-term debt (net) totaled almost $999.8 million, higher than its cash equivalents of $242.4 million.

Key Picks

Some better-ranked stocks from the same space are discussed below.

Leidos Holdings, Inc.  LDOS presently carries a Zacks Rank #2 (Buy). It has a trailing four-quarter average earnings surprise of 25.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for LDOS’ 2025 earnings has improved 3% in the past 60 days.

Vertiv Holdings Co VRT presently carries a Zacks Rank of 2 and has a trailing four-quarter earnings surprise of 10.7%, on average. The consensus estimate for VRT’s 2025 earnings has increased 7% in the past 60 days. 

ExlService Holdings, Inc. EXLS presently carries a Zacks Rank of 2. EXLS delivered a trailing four-quarter earnings surprise of 7.5%, on average. The Zacks Consensus Estimate for ExlService’s 2025 earnings has increased 1.1% in the past 60 days.

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

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research