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Rollins Gears Up to Report Q1 Earnings: What's in the Cards?

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Key Takeaways

  • ROL is slated to report Q1 2026 results on April 22, with revenues expected to rise 8.8% year over year.
  • ROL's growth is likely to be driven by Orkin's strength, high retention and demand from commercial clients.
  • Digital tools, pricing strategies and acquisitions are expected to support sales and margins.

Rollins, Inc. (ROL - Free Report) is set to report its first-quarter 2026 results on April 22, after the closing bell.

The company’s earnings surprise history has been impressive. It surpassed the Zacks Consensus Estimate in two of the last four quarters, matched once and missed once, delivering an earnings surprise of 1.4%, on average.

Rollins, Inc. Price, Consensus and EPS Surprise

Rollins, Inc. Price, Consensus and EPS Surprise

Rollins, Inc. price-consensus-eps-surprise-chart | Rollins, Inc. Quote

Q1 Expectations for ROL

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $895.1 million, indicating an 8.8% year-over-year increase.

The consensus estimate for Residential revenues is pegged at $384.4 million, suggesting a 7.9% increase from the year-ago quarter. Commercial revenues are anticipated to rise 7.1% year over year to $304.5 million. The consensus estimate for termite and ancillary revenues is pegged at $195.5 million, suggesting 10.2% growth on a year-over-year basis. Franchise revenues are estimated to be $3.8 million, indicating a 2.1% rise from the year-ago quarter’s actual.

The top line is likely to have increased in the to-be-reported quarter, driven by Orkin’s (ROL’s subsidiary) growth, which maintains the highest customer retention rate among the company’s service lines and strong demand from commercial clients.

ROL’s technologically advanced digital tools, such as BOSS, VRM, Orkin 2.0, BizSuite and InSite, are also anticipated to have boosted its sales volume. These tools enhance the commercial sales process through real-time quoting, site mapping and improved visibility for multi-location customers by streamlining service delivery, boosting technician productivity and enhancing customer engagement.

The consensus estimate for United States revenues is pegged at $836.2 million, indicating a 9.5% increase from the year-ago quarter. Other countries' revenues are anticipated to rise 9% year over year to $64.4 million.

The company’s accelerated media engagements through advertisements on social media such as TikTok and Facebook are likely to have enhanced its mass popularity. Recent acquisitions are also expected to have provided the company with more geographical exposure to favorable regions.

The Zacks Consensus Estimate for earnings is pegged at 24 cents per share, indicating year-over-year growth of 9.1%.

The company's CPI-plus focused 3%-4% pricing strategies, which aim to ease the inflation effect by keeping its price above the general Consumer Price Index (CPI) rate, are likely to have aided the bottom line.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for ROL this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they're reported with our Earnings ESP Filter.

ROL has an Earnings ESP of 0.00% and currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.

Xylem Inc. (XYL - Free Report) has an Earnings ESP of +0.86% and a Zacks Rank of 3. The company is scheduled to report its first-quarter 2026 results on April 28.

The Zacks Consensus Estimate for XYL’s first-quarter 2026 revenues is pegged at $2.1 billion, indicating year-over-year growth of 1.8%. For earnings, the consensus mark is pegged at $1.09 per share, implying a 5.8% increase from the year-ago quarter’s actual. XYL beat the consensus estimate in three of the last four reported quarters, while matching once, with the average earnings surprise being 7.4%.

Veralto Corporation (VLTO - Free Report) has an Earnings ESP of +0.29% and a Zacks Rank of 3. The company is scheduled to announce its first-quarter 2026 results on April 28.

The Zacks Consensus Estimate for VLTO’s first-quarter 2026 revenues is pegged at $1.4 billion, indicating 5.3% year-over-year growth. The consensus estimate for earnings is pegged at $1.02 per share, implying a year-over-year increase of 7.4%. VLTO beat the consensus estimate in each of the trailing four quarters, delivering an average earnings surprise of 6%.

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