GET DAILY SIGNALSRepublic Services (RSG) Delivers +8.2% Revenue Growth and Raises Full-Year Outlook
Key Takeaways
- Revenue rose 8.2% year over year to $4.56 billion, topping consensus estimates of roughly $4.41–$4.42 billion.
- Adjusted EPS (earnings per share) came in at $1.94, slightly above the $1.93 Wall Street consensus and up from $1.90 a year ago.
- GAAP (Generally Accepted Accounting Principles) net income was $592 million, or $1.93 per diluted share, compared with $550 million, or $1.76 per share, a year earlier.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached $1.45 billion, a 31.8% margin.
- Full-year revenue guidance was raised to a $17.425–$17.475 billion range, with a midpoint near $17.45 billion.
Why This Quarter Matters
Republic Services, one of North America’s largest environmental services providers, depends on disciplined pricing and cost control to generate consistent growth in a capital-intensive sector. The third quarter offered a useful test of whether the company could maintain margin expansion amid softer collection volumes and an improving Environmental Solutions segment. After second-quarter results also exceeded expectations, investors wanted confirmation that pricing power and acquisition-driven growth were still on track. The report also served as a checkpoint on full-year guidance following an earlier raise in 2026.
Breaking Down the Reported Results
Republic Services posted third-quarter revenue of $4.559 billion, up 8.2% from $4.212 billion a year earlier and ahead of consensus estimates around $4.41–$4.42 billion. Adjusted EPS reached $1.94, compared with $1.90 in the prior-year quarter and just above the $1.93 consensus. On a GAAP basis, net income totaled $592 million, or $1.93 per diluted share, versus $550 million, or $1.76 per share, last year. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Adjusted EBITDA came in at $1.45 billion for a 31.8% margin, while operating margin stayed at 20.2%. Free cash flow margin fell to 14.1% from 18.3% a year ago. Management lifted full-year revenue guidance to $17.425–$17.475 billion, with a midpoint near $17.45 billion, and reaffirmed adjusted EBITDA guidance of about $5.56 billion at the midpoint. Pricing continued to drive growth, aided by better performance in the Environmental Solutions segment.
Market Reaction and Investor Sentiment
The modest beats on revenue and earnings, together with the raised full-year revenue outlook, produced a constructive investor response. The stock had already risen more than 12% over the prior three months, reflecting steady interest in defensive, dividend-paying names with pricing resilience. The slight EPS beat and higher revenue guidance reinforced confidence in management’s approach, although the lower free cash flow margin remained a point to watch. Overall sentiment stayed balanced, helped by the company’s track record of meeting or beating estimates.
Forward Outlook and Factors to Watch
Looking ahead, the focus will be on whether Republic Services can convert its pricing strength into sustained free cash flow growth. The drop in free cash flow margin this quarter appears tied to timing and investment decisions that merit ongoing attention as the company balances capital spending with efficiency and automation efforts.
Collection volumes, especially in residential and large-container categories, will serve as an important indicator of underlying demand. Further gains in the Environmental Solutions segment could add another earnings driver, while recycled commodity prices will affect recycling revenue. Acquisitions remain central to the growth plan, with capital continuing to flow into value-creating deals. Cost trends in labor, fuel, and transportation will also influence margins through the rest of 2026, even as disciplined pricing supports results.
My Experience with Tickeron’s AI Tools
I often turn to Tickeron’s AI Screener when reviewing earnings reports like this one. It lets me quickly filter for similar companies by fundamentals, technical patterns, and performance metrics, which helps me place the results in better context without spending hours on manual comparisons. The tool has become a regular part of how I build and refine watchlists for sectors I follow closely.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
RSG in upward trend: 10-day moving average moved above 50-day moving average on October 15, 2026
The 10-day moving average for RSG crossed bullishly above the 50-day moving average on October 15, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 13 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 81%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 06, 2026. You may want to consider a long position or call options on RSG as a result. In 42 of 75 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 56%.
The Moving Average Convergence Divergence (MACD) for RSG just turned positive on October 07, 2026. Looking at past instances where RSG's MACD turned positive, the stock continued to rise in 30 of 50 cases over the following month. The odds of a continued upward trend are 60%.
RSG moved above its 50-day moving average on October 07, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +3.16% 3-day Advance, the price is estimated to grow further. Considering data from situations where RSG advanced for three days, in 181 of 351 cases, the price rose further within the following month. The odds of a continued upward trend are 52%.
Bearish Trend Analysis
The 10-day RSI Indicator for RSG moved out of overbought territory on October 27, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 44 similar instances where the indicator moved out of overbought territory. In 16 of the 44 cases, the stock moved lower in the following days. This puts the odds of a move lower at 36%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 24 of 54 cases where RSG's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 44%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where RSG declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 40%.
RSG broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for RSG entered a downward trend on October 13, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 18 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 30 (best 1 - 100 worst), indicating outstanding price growth. RSG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 38 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 49 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 82 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.940) is normal, around the industry mean (47.695). P/E Ratio (33.059) is within average values for comparable stocks, (51.524). RSG's Projected Growth (PEG Ratio) (2.742) is slightly higher than the industry average of (1.132). Dividend Yield (0.011) settles around the average of (0.014) among similar stocks. P/S Ratio (4.031) is also within normal values, averaging (72.867).
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General Information
a provider of solid waste collection and disposal & recycling services
Industry EnvironmentalServices
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