What Happened?
Shares of pest control company Rollins (NYSE: ROL) jumped 6.8% in the morning session after it reported solid third-quarter 2025 financial results that met revenue expectations and surpassed profit forecasts.
Rollins announced revenue grew 12% year-over-year to $1.03 billion, in line with analyst estimates. The company's profitability was a key highlight, as its adjusted earnings per share of $0.35 represented a 20.7% increase from the prior year and beat Wall Street's expectations by 6.4%. Furthermore, its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $258.3 million also came in ahead of consensus. The solid report appeared to give investors confidence in the company's financial health and ability to grow.
Is now the time to buy Rollins? Access our full analysis report here.
What Is The Market Telling Us
Rollins’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was about 1 month ago when the stock gained 2.7% on the news that JPMorgan initiated coverage on the pest control company with an "Overweight" rating and a $70 price target. The investment bank's price target suggested a potential 24% upside from the stock's trading levels at the time. In its research note, JPMorgan highlighted Rollins' resilient business model, pointing out that about 80% of its revenue came from recurring service contracts, which provided stability. The bank also noted a significant growth opportunity within the U.S. pest control industry, a market it valued at over $20 billion, which remained under-penetrated. The firm’s earnings forecasts for 2025-2026 stood above the general consensus on Wall Street, based on expectations of steady growth and planned acquisitions.
Rollins is up 24.3% since the beginning of the year, and at $57.22 per share, it is trading close to its 52-week high of $58.74 from September 2025. Investors who bought $1,000 worth of Rollins’s shares 5 years ago would now be looking at an investment worth $1,484.
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