Strength in Technology Enabled Products Drives Roper: Can It Sustain?

Roper Technologies, Inc. ROP is witnessing strong momentum in the Technology Enabled Products segment, driven by persistent strength in medical products businesses. Growth in demand for ultrasonic meters, cloud-based data and billing software solutions is fostering the growth of the Neptune business within the segment. In third-quarter 2025, the segment’s organic revenues increased 6% on a year-over-year basis.

Solid performance of the Verathon business, supported by strength across single-use BFlex & GlideScope offerings, bodes well for the segment. Also, healthy demand for cardiac, neurology and orthopedic precision measurement solutions is aiding the NDI business. Roper expects low-single-digit organic revenue growth for the segment in the fourth quarter of 2025.

Also, the growing popularity of its products and solutions across the Deltek, Vertafore, PowerPlan and Aderant businesses is driving ROP’s Application Software segment. This apart, strong momentum across alternate site healthcare, construction, and freight match markets, augurs well for its Network Software unit. Driven by strength across its businesses, the company expects total revenues to increase approximately 12.9% in 2025 from the year-ago level. Organic revenues are estimated to rise approximately 6% year over year.

Performance Snapshot of ROP’s Peers

Among its major peers, Agilent Technologies, Inc. A has a significant exposure to the healthcare industry, which holds long-term prospects. Agilent’s strength in liquid chromatography systems and components and liquid chromatography mass spectrometry systems remains a plus. Also, strengthening demand for RF test equipment by medical device manufacturers remains a tailwind for Agilent.

Another peer, Honeywell International Inc. HON, has been witnessing persistent weakness in the Industrial Automation segment. Softness in the productivity solutions and services business, owing to a decrease in license and settlement payments, remains a concern for Honeywell’s segment. In third-quarter 2025, Honeywell’s Industrial Automation segment’s sales declined 9% on a year-over-year basis.

ROP’s Price Performance, Valuation and Estimates

Shares of Roper have lost 11.8% in the past three months against the industry’s growth of 0.8%.

From a valuation standpoint, ROP is trading at a forward price-to-earnings ratio of 20.90X compared with the industry’s average of 25.31X. Roper carries a Value Score of C.

The Zacks Consensus Estimate for ROP’s 2025 and 2026 earnings has declined over the past 60 days.

Roper currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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