JPMorgan cuts Rollins to Neutral on demand uncertainty, slashes price target

Rollins reported weaker-than-expected Q2 results, missing estimates on adjusted EPS, revenue, and EBITDA, raising concerns about its pest control operations. The company faces operational and demand pressures, with key risks including cost inflation and macroeconomic weakness. Rollins' long-term projections include $5.0B revenue and $732.6M earnings by 2029, but analysts' outlooks vary. The stock's fair value suggests a 36% potential upside.

Rollins, Inc. reported Q2 2026 operating margin of 18.7%, down 110 bps year over year, and operating cash flow of $173 million, down 1.5%. CEO Jerry Gahlhoff said results missed expectations due to a weaker lead environment and fewer customers using digital pest-control searches. Rollins shares fell about 9.27%.

Piper Sandler lowered its Rollins (NYSE:ROL) stock price target to $46 from $72 and kept an “overweight” rating, citing updated expectations. Other analysts also cut targets, including Wells Fargo to $32 and UBS reaffirming $43. ROL traded at $38.51 after Q2 EPS of $0.32 vs $0.34 consensus.

Rollins Inc (NYSE:ROL) reported Q2 results after the close. Earnings were 32 cents per share versus a 34-cent consensus, and sales were $1.079 billion versus $1.092 billion expected. Shares fell 1.7% to $38.78 premarket. After the report, JP Morgan cut its target to $45 from $70 and downgraded to Neutral, while Wells Fargo cut to $32 from $46 and downgraded to Underweight.

Wells Fargo downgraded Rollins (ROL) to underweight from equal weight and cut its price target to $32 from $46, citing softer residential pest-control demand. The bank cited headwinds including weather, potential impacts from LLMs, more aggressive competition, and more price-sensitive consumers. Rollins reported 5.7% organic growth, missed Q2 estimates, and lowered FY2026 guidance to about 6%.

Piper Sandler cut its price target for Rollins Inc. (NYSE:ROL) to $46 from $72 while keeping an Overweight rating, citing weak pest-control results and residential weakness in May. Rollins reported Q2 adjusted EPS of $0.32 and revenue of $1.08B, and lowered 2026 guidance. The firm lowered earnings estimates and assumed a 35x 2027 EPS multiple.