Abstract
Rollins will report fourth-quarter results on February 11, 2026, Post Market; this preview consolidates recent financial data, prior-quarter actuals, and consensus expectations to frame the revenue, margin, and adjusted EPS trajectory alongside institutional views.
Market Forecast
For the current quarter, the company’s internal forecast points to revenue of USD 926.76 million, an adjusted EBIT estimate of USD 181.17 million, and adjusted EPS of USD 0.27; year-over-year growth rates are 13.35% for revenue, 12.93% for EBIT, and 15.17% for EPS. Forecast margin color is limited, but the implied trajectory suggests continued gross profit resilience and stable net profitability relative to last year. The core business mix remains anchored by customer service contracts, commercial contracts, and termite-related services, with customer service standing out for its breadth of revenue contribution. The most promising segment appears to be customer service, contributing USD 476.27 million last quarter, supported by recurring demand and retention dynamics that have historically driven stable year-over-year growth.
Last Quarter Review
Rollins posted revenue of USD 1.03 billion, a gross profit margin of 54.44%, GAAP net profit attributable to the parent company of USD 164.00 million, a net profit margin of 15.94%, and adjusted EPS of USD 0.35; year-over-year growth was 11.99% for revenue, 18.39% for EBIT, and 20.69% for EPS. A notable highlight was outperformance against estimates: revenue surpassed consensus by USD 5.32 million and EBIT exceeded estimates by USD 9.37 million, helping adjusted EPS to beat by USD 0.02. Main business highlights showed customer service revenue of USD 476.27 million, commercial contracts at USD 334.96 million, and termite and ancillary services at USD 204.67 million, indicating broad-based demand across recurring and project-based treatments.
Current Quarter Outlook
Customer Service (Core Recurring Contracts)
Customer service is the company’s largest contributor and the backbone of quarterly visibility, with last quarter revenue of USD 476.27 million. The quarter-on-quarter net profit increase of 15.58% alongside a 54.44% gross margin suggests a favorable mix of recurring service work and pricing discipline that should support this business again. With the forecast calling for USD 926.76 million in total revenue and a USD 0.27 adjusted EPS, recurring contracts are expected to underpin the year-over-year progression, aided by renewal rates and targeted cross-selling within residential accounts. Execution risk primarily revolves around labor availability and service efficiency metrics, though the company’s margin profile indicates steady throughput and controlled cost inflation.
Commercial Contracts (Balanced Growth and Margin Contribution)
Commercial contracts delivered USD 334.96 million last quarter and form a significant pillar for incremental growth. The breadth across institutional and small-business clients tends to moderate seasonal swings, providing a relatively stable contribution to consolidated margins. With EBIT forecast at USD 181.17 million, the company appears positioned to maintain disciplined service density and route optimization, which can support margin preservation against wage and fuel cost variability. The key swing factor for this quarter is activity normalization in cyclical customer industries; steadier demand conditions should allow commercial service frequency to contribute to balanced growth without overstressing capacity or pricing.
Termite and Ancillary Services (Event-Driven Upside Potential)
Termite and ancillary services posted USD 204.67 million last quarter, benefiting from remediation cycles and localized weather patterns that drive inspection work. While this segment is less recurring than service contracts, it can provide upside when unit growth and pricing converge, particularly in regions with elevated termite pressure. Given the forecast revenue growth of 13.35% year over year, a modest expansion in termite jobs could be a secondary driver of consolidated performance, complementing the recurring base. Operationally, the task complexity of termite work requires careful scheduling and technician training, but the company’s stable net margin of 15.94% last quarter indicates readiness to absorb project-based variability.
Stock Price Drivers This Quarter
Revenue quality and margin durability are central to how the stock is likely to trade around the print. The market will be sensitive to any indication of gross margin trajectory given the 54.44% level achieved last quarter and the forecast EPS of USD 0.27, which infers stable operating leverage. Surprises versus the company’s own revenue estimate of USD 926.76 million and EBIT of USD 181.17 million will likely steer the immediate reaction; beats could signal stronger recurring service momentum or favorable mix shifts in commercial and termite work. Investors will also watch retention rates and route density commentary for clues on cost coverage and incremental profitability in the first half of the year.
Analyst Opinions
Across institutional commentary gathered in recent months, the majority view is constructive on near-term earnings, leaning toward continued revenue expansion and stable-to-improving margins into the fourth quarter. The emphasis has been on the defensiveness of recurring service contracts and the company’s pricing approach, which together have supported earnings beats, including last quarter’s USD 0.02 adjusted EPS surprise and USD 9.37 million EBIT upside. Analysts highlight the balance of growth between residential and commercial demand, with the consensus pointing to year-over-year increases of 13.35% in revenue and 15.17% in adjusted EPS for the current quarter. Among those with favorable views, the common threads are sustained renewal rates, route optimization initiatives, and disciplined cost control that align with the implied EBIT of USD 181.17 million. The constructive stance rests on the company’s demonstrated margin execution and the breadth of its service portfolio, which mitigate volatility while allowing selective investment in technician capacity and digital customer engagement. In contrast, bearish arguments have centered on potential seasonal softness or episodic cost pressures; however, these have not dominated recent institutional assessments, and the prevailing expectation remains for a solid quarter anchored by recurring revenue strength.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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