Earnings and dividend update for Republic Services stock

Republic Services (RSG) drew fresh attention after reporting first quarter 2026 earnings, with higher sales, net income and earnings per share, alongside confirming its regular quarterly dividend.

For the quarter ended March 31, 2026, Republic Services reported sales of US$4,113 million compared with US$4,009 million a year earlier. Net income was US$525 million versus US$495 million, with basic and diluted earnings per share from continuing operations at US$1.70 compared with US$1.58.

Alongside the results, the company declared a quarterly dividend of US$0.625 per share, payable on July 15, 2026, with an ex dividend and record date of July 2, 2026. For income focused investors, the confirmed payout keeps Republic Services on the radar as a potential source of regular cash flows.

Despite the solid first quarter earnings update and confirmed dividend, the stock has given up some ground recently, with a 30 day share price return of 8.54% and a year to date share price return decline of 4.12%. At the same time, the 5 year total shareholder return of 94.86% points to meaningful long term gains. This suggests that near term momentum has faded even as the longer record remains supportive for investors focusing on extended holding periods.

If this earnings story has you reassessing your portfolio, it could be a good moment to broaden your watchlist with 36 power grid technology and infrastructure stocks

With the stock weaker over the past year yet trading at a discount to analyst price targets and some estimates of intrinsic value, investors may ask: Is Republic Services undervalued, or is the market already pricing in future growth?

Most Popular Narrative: 17.9% Undervalued

At a last close of $201.55 versus a narrative fair value of $245.38, the widely followed valuation view points to a sizeable pricing gap that hinges on future growth and margin assumptions.

Republic Services is advancing in digital capabilities, including the deployment of M-Power, a fleet and equipment management system, which is expected to increase maintenance technician productivity and improve margins. Sustainability efforts such as the development of Polymer Centers and the Blue Polymers joint venture could drive future revenue growth by enhancing plastic circularity and decarbonization.

Curious what kind of revenue path, margin lift and earnings profile are baked into that gap between price and fair value? The full narrative spells out the numbers, the timing and the valuation multiple that need to line up for this thesis to work.

Result: Fair Value of $245.38 (UNDERVALUED)

However, softness in construction related volumes and the execution risk around US$1b of planned acquisitions could quickly challenge the current upside narrative.

Another View: Pricing Looks Full On Earnings

The narrative fair value suggests Republic Services is undervalued, but the earnings multiple tells a tighter story. The stock trades on a P/E of 29.1x, which is higher than the US Commercial Services industry at 20.7x and above its own fair ratio of 25.8x, although below the peer average of 35.2x. That mix of premium to the industry and discount to peers points to some valuation risk as well as potential upside, so which reference point do you trust most?

Next Steps

With mixed signals on valuation and sentiment, it makes sense to check the numbers yourself and move quickly while opinions are divided. You can start with the 4 key rewards and 1 important warning sign.

Looking for more investment ideas?

If Republic Services is on your radar, this is a good moment to widen your opportunity set and see what else could strengthen your portfolio for the long haul.

• Zero in on quality at a discount by scanning 51 high quality undervalued stocks that combine solid fundamentals with pricing that may appeal to value focused investors.
• Prioritize resilience with 71 resilient stocks with low risk scores that score well on stability so short term swings are less likely to knock your plan off course.
• Spot potential future standouts early by checking the screener containing 23 high quality undiscovered gems before they move firmly onto everyone else's watchlist.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.