Learn Why The Bull Case For Rollins Stock Could Change Following Weak Quarterly Results

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%.

JPMorgan downgraded Rollins to Neutral from Overweight and cut its price target to $45 from $70, citing uncertainty from weakening residential demand and a slower margin recovery. It lowered fiscal 2026/2027 revenue growth forecasts to 8.7% and 8.4%, adjusted EBITDA margins to 21.9% and 22.2%, and adjusted EPS to $1.17 and $1.26. The move follows a weaker Q2 with declining lead volumes.

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.