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ROL · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Rollins, Inc. (ROL) stock moving?
Rollins reported Q3 2026 results on Oct 21 with revenue up 6.2% to $1.1B (organic +4.4%), but operating margin fell 140 bps to 20.5%, adjusted EPS slipped 2.9% to $0.34, and management said it was disappointed with customer acquisition. Free cash flow rose 28.8% to $235M, but $63M of that came from the timing of a tax refund, and the company spent $120M on buybacks. The stock closed at $33.33 on Oct 28 and rose about 15% to $38.42 by Nov 10. A 3.7% gain on Nov 3 came on 12.0M shares of volume, and no news item in the feed explains it. Citigroup's Nov 9 upgrade to Buy with a $49 target lifted the shares 2.1%. Wells Fargo keeps an Underweight rating with a $30 target, so the Street is split. Volume has faded from 12.0M on Nov 3 to 4.0M on Nov 10 while the price held near the 30-day high of $39.31 set on Nov 5, which suggests the rally is not drawing strong fresh participation.
News behind the analysis
- Citigroup Upgrades Rollins to Buy, Raises Price Target to $49Citigroup moved Rollins from Neutral to Buy with a $49.00 price target. The stock closed up 2.1% on Nov 9 at $38.54.
- Citigroup Upgrades Rollins to BuyCitigroup upgraded Rollins from Neutral to Buy and set a new price target of $49.00.
- Wells Fargo Maintains Underweight on Rollins, Raises Price Target to $30Wells Fargo kept its Underweight rating on Rollins and raised its price target to $30, well below the Nov 10 close of $38.42.
- ROLLINS, INC. REPORTS THIRD QUARTER 2026 FINANCIAL RESULTSQ3 revenue rose 6.2% to $1.1B, but operating margin fell 140 bps to 20.5% and adjusted EPS fell 2.9% to $0.34. Management said it was disappointed and is acting on customer acquisition.
About Rollins, Inc.
Rollins, based in Atlanta, is one of the world's largest pest-control companies. It runs Orkin and many other regional brands and serves homes and businesses. It stands out for its long run of steady growth (it reported its 99th straight quarter of revenue growth in mid-2026), its mostly recurring service contracts, and its habit of growing by buying smaller local pest-control firms.
How it makes money
Rollins makes money by selling recurring pest-control service plans and one-off treatments. Its revenue comes from three areas: residential pest control (roughly 45%), commercial pest control for places like restaurants, warehouses and healthcare sites (roughly 30–35%), and termite and ancillary services (roughly 20–25%). Total revenue is about $4 billion a year (approximate), and it usually grows through a mix of organic gains and acquisitions. Results are seasonal, with the strongest quarters in spring and summer.
What usually moves ROL
- Organic revenue growth, especially residential demand
- Pace and size of acquisitions
- Margin pressure from labor, insurance/claims and fuel costs
- Weather and seasonal pest activity
- Changes in residential customer acquisition (e.g. AI-driven search)