Rollins Q2 FY2026: revenue up 7.9% but margin and EPS miss
Rollins grew revenue 7.9% to $1.08 billion, yet operating margin fell 110 basis points and adjusted EPS of $0.32 landed below the $0.344 consensus estimate — growth without much profit leverage. Management blamed softer consumer-initiated residential demand while relationship-based channels held up. Read this as a demand-and-margin story, not a cash story: free cash flow stayed near $166 million.
1 · Expected vs. Actual
Free preview belowGAAP EPS was $0.30 versus $0.29 a year ago, and adjusted EPS was $0.32 — both below the $0.344 analyst estimate, so this was a miss on the bottom line. Net income of $143.9 million rose just 1.7% while revenue rose 7.9%, because cost of services and SG&A both grew faster than sales. SG&A alone was $335.0 million, or 31.1% of revenue, up from 30.8% a year earlier.
Revenue rose 7.9% to $1.08 billion from $999.5 million a year earlier, with acquisitions adding 2.2 points and organic growth of 5.7%. Residential, the largest line, grew 6.6% to $485.8 million but only 3.6% organically — the soft spot management flagged. Commercial revenue grew 8.6% to $347.9 million and termite and ancillary grew 10.5% to $234.2 million.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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