• In February 2026, Rollins, Inc. reported fourth-quarter and full-year 2025 results that delivered year-on-year earnings growth but missed Wall Street revenue and profit expectations, as early winter weather reduced demand for one-time and seasonal pest control projects and weighed on margins and cash flow.
• At the same time, management highlighted 24 consecutive years of revenue growth and outlined plans to pursue further organic expansion and disciplined acquisitions in 2026, aiming to build on a robust M&A pipeline despite recent weather-related headwinds.
• Against this backdrop of weather-driven earnings pressure and continued acquisition plans, we’ll examine how the latest results reshape Rollins’ investment narrative.

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Rollins Investment Narrative Recap

To own Rollins today, you need to believe in a resilient, largely recurring pest control business that can keep growing through a mix of organic expansion and acquisitions. The latest quarter’s weather-driven miss and margin pressure highlight that near term sentiment is tied to how quickly project work and cash flow normalize, while the biggest current risk is that acquisition execution and integration do not deliver the revenue and margin lift management is targeting.

The most relevant recent announcement is management’s February 2026 update on its acquisition plans, including a “very full” M&A pipeline and expectations that deals could again add about 2% to 3% revenue growth in 2026. That matters now because, after a quarter where early winter hurt seasonal jobs and cash generation, Rollins’ ability to source, price, and integrate acquisitions cleanly is central to supporting growth and offsetting any lingering operational pressure.

Yet while growth plans look appealing, investors should also be aware that rising acquisition multiples and integration risk could start to weigh more heavily on Rollins’ margin profile and valuation...

Rollins' narrative projects $4.6 billion revenue and $686.0 million earnings by 2028. This requires 8.8% yearly revenue growth and about a $196.7 million earnings increase from $489.3 million today.

Uncover how Rollins' forecasts yield a $64.53 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Some of the most cautious analysts were already assuming Rollins would need to reach about US$4.5 billion of revenue and US$679.8 million of earnings by 2028, and this latest weather hit could reinforce that more pessimistic view that high growth and high margins are harder to sustain at today’s valuation.

Explore 5 other fair value estimates on Rollins - why the stock might be worth as much as 24% more than the current price!

Build Your Own Rollins Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Rollins research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Rollins research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Rollins' overall financial health at a glance.

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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.