Rollins, Inc. ROL strengthens its position in the evolving pest control industry through the strategic use of technology and disciplined buyouts. Sustained segment-level performance provides a strong foundation for future objectives. Strong shareholder policies remain favorable for the company.
The company’s second-quarter 2026 earnings are expected to increase 13.3% year over year. Its 2026 and 2027 earnings are projected to rise 10.7% and 12.1%, respectively. Revenues are expected to grow 10.1% in 2026 and 9.3% in 2027.
Factors That Bode Well for ROL
Rollins’ top line is benefiting from robust segmental performance and a strong demand environment. The company’s revenues increased 10.2% year over year during the first quarter of 2026, driven by 6.6% organic growth. Growth was observed across its key segments, with Residential revenues and Commercial pest control revenues growing 9.3% and 9.6% year over year, respectively, while Termite and ancillary services revenues posted 13.5% growth during the same period.
Rollins, Inc. Revenue (TTM)
Rollins, Inc. revenue-ttm | Rollins, Inc. Quote
The company’s use of technology platforms, such as VRM and Orkin 2.0, optimizes routing and scheduling, reduces technician mileage and improves service speed. This technology-driven approach boosts operational efficiency, improves customer experience and drives cost savings, supporting sustainable growth. ROL has expanded resources dedicated to Orkin's commercial division, resulting in new customer wins across multiple industry verticals.
ROL’s disciplined acquisitions approach has significantly accelerated the business development and expanded both its global brand presence and geographic reach. The company consistently demonstrates strong target identification and integration capabilities, completing 26 acquisitions in 2025, 44 in 2024 and 24 in 2023. ROL recently completed the acquisition of Romex Pest Control, a leading pest management company in North America, to penetrate lucrative new territories and expand service offerings for existing customers.
The company has demonstrated a strong commitment to its shareholders through consistent dividend payments. It paid dividends of $264.3 million, $298 million and $327.9 million in 2023, 2024 and 2025, respectively. This consistency underscores its dedication to creating long-term value for investors.
Risks to Watch
Rollins’ operating expenses have risen consistently over the past four years, increasing from $2.20 billion in 2022 to $2.49 billion in 2023 and further to $2.73 billion in 2024. This growth persisted through 2025 as expenses climbed to $3.03 billion, raising cost concerns that may compromise future profit margins.
The company's investments in customer acquisition, marketing and salesforce growth have surged in recent years to drive sales volumes and extend its competitive edge. However, the costs associated with these investments have begun to affect the bottom line, as evidenced by a dip in the adjusted operating income margin to 16.9% during the first quarter of 2026, reflecting a 100-basis-point year-over-year decline.
Rollins currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Stocks to Consider
A couple of better-ranked stocks in the broader Zacks Business Services sector are Veralto Corporation VLTO and Corpay, Inc. CPAY.
Veralto Corporation carries a Zacks Rank #2 (Buy) at present. It has a long-term earnings growth expectation of 8.4%. VLTO delivered a trailing four-quarter earnings surprise of 4.9%, on average.
Corpay also holds a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 14.3%. CPAY's earnings beat estimates in three of the last four reported quarters, while matching once, with the surprise being 2%, on average.
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This article originally published on Zacks Investment Research (zacks.com).