Detailed Narrative
AI Strategy and Accelerator Team
Roper is excited about the AI product opportunity, leveraging deep domain knowledge, proprietary data, and trusted distribution within mission-critical workflows. The decentralized model allows each business to deploy AI with appropriate domain specificity. The company hired Shane Luke and Eddie Raffaele to lead the Roper AI accelerator team, coaching businesses, building a strike team, and leveraging best practices across the portfolio to increase deployment speed and precision.
Capital Allocation and M&A Pipeline
In 2025, Roper deployed $3.3 billion into high-quality vertical software acquisitions and repurchased 1.1 million shares for $500 million in Q4. The company enters 2026 with over $6 billion in capacity for M&A and share repurchases. Management is encouraged by the size and quality of its acquisition pipeline, expecting to remain active while maintaining discipline on price and business quality, and will use buybacks opportunistically.
Deltek Performance and Outlook
Deltek was a weaker performer in 2025 due to a challenging GovCon market, prolonged government shutdown, and impact on perpetual license revenue. While the passage of the OBBB (Omnibus Appropriations Bill) is viewed as a positive development, Roper's 2026 guidance does not include any benefit from it, maintaining a conservative posture until sustained improvement in commercial activity is observed. Commercial activity and pipeline build have been encouraging despite slower contract signatures.
DAT's Evolution and AI Integration
Despite a persistent freight recession in 2025, DAT is evolving from a traditional load board to an automated marketplace, expanding its TAM and monetization opportunities. DAT is advancing an AI-first operating model with use cases in carrier onboarding, fraud detection, and freight matching automation. The focus is on building both sides of the network, starting with native integrations with broker TMS systems and building a high-trust carrier network.
Procare and Integration Learnings
Procare did not meet expectations in 2025, primarily due to delays in software and payments implementation, which impacted customer time to value and payments volumes. The company has improved payments execution, upgraded leadership, and continues to win competitively. Learnings from Procare's challenges are being applied to the governance of other acquired businesses like Subsplash and CentralReach, leading to immediate corrective actions for small variances.
Neptune's Normalization and Caution
Neptune grew modestly in 2025, supported by demand for static ultrasonic meters and cloud-based software, despite a year-long backlog normalization. Commercial challenges related to a tariff surcharging program eased late in the year, but management remains cautious and is not underwriting a recovery in its 2026 guidance. The first half of 2026 is expected to see lower growth due to continued backlog normalization.