Republic Services (NYSE:RSG) Hits New 12-Month High Following Earnings Beat

Key Points

• Republic Services exceeded quarterly expectations: EPS came in at $1.94 versus the roughly $1.92–$1.93 consensus, while revenue rose 8.2% year over year to $4.56 billion, surpassing estimates.
• Shares reached a new 52-week high of $249.37 after the earnings beat, though the stock’s elevated valuation could limit further upside if growth slows.
• Shareholder returns and outlook strengthened: Management raised 2026 revenue guidance above analyst expectations, authorized up to $5 billion in buybacks, and declared a quarterly dividend of $0.67 per share.

Republic Services, Inc. (NYSE:RSG - Get Free Report)'s share price reached a new 52-week high during trading on Friday following a better than expected earnings announcement. The stock traded as high as $249.37 and last traded at $242.8390, with a volume of 144,861 shares trading hands. The stock had previously closed at $236.28.

The business services provider reported $1.94 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.93 by $0.01. Republic Services had a net margin of 12.94% and a return on equity of 18.69%. The business had revenue of $4.56 billion for the quarter, compared to analyst estimates of $4.42 billion. During the same period in the previous year, the company earned $1.90 earnings per share. The business's revenue for the quarter was up 8.2% on a year-over-year basis.

Republic Services Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 15th. Stockholders of record on Monday, January 4th will be given a $0.67 dividend. The ex-dividend date of this dividend is Monday, January 4th. This represents a $2.68 dividend on an annualized basis and a dividend yield of 1.1%. Republic Services's dividend payout ratio (DPR) is presently 37.96%.

Republic Services News Roundup

Here are the key news stories impacting Republic Services this week:

• Positive Sentiment: Q3 results exceeded expectations: Republic Services reported adjusted EPS of $1.94, ahead of the $1.92–$1.93 consensus range, while revenue increased 8.2% year over year to approximately $4.56 billion, above the $4.42 billion estimate. Net income rose to $592 million from $550 million a year earlier. Republic Services Reports Third Quarter 2026 Results
• Positive Sentiment: Guidance was raised above analyst expectations: Management now expects 2026 revenue of approximately $17.425 billion to $17.475 billion, compared with a FactSet estimate near $17.33 billion. The company cited continued momentum in its environmental solutions business. Republic Services Outlines 2026 Revenue Outlook
• Positive Sentiment: Capital returns received a significant boost: The board authorized up to $5 billion in share repurchases, which could support earnings per share and shareholder demand. Republic also declared a quarterly dividend of $0.67 per share, or $2.68 annually. Republic Services Announces Equity Buyback
• Neutral Sentiment: Cash generation and acquisitions remain important themes: Year-to-date operating cash flow reached $3.52 billion, adjusted free cash flow was $2.28 billion, and the company invested about $1.1 billion in acquisitions, supporting its growth strategy but increasing the importance of disciplined integration. Republic Services Q3 2026 Earnings Call Transcript
• Negative Sentiment: Valuation could temper the reaction: With shares trading at a high earnings multiple and near their annual high, investors may expect sustained growth, leaving less room for disappointment. Separately, Salinas workers voted to join the Teamsters, introducing potential uncertainty around future labor costs and operating terms. Republic Services Earnings and Valuation

Analyst Upgrades and Downgrades

RSG has been the subject of several research analyst reports. Canadian Imperial Bank of Commerce decreased their price objective on shares of Republic Services from $249.00 to $240.00 and set an "outperform" rating for the company in a research report on Thursday, October 8th. The Goldman Sachs Group dropped their target price on Republic Services from $256.00 to $246.00 and set a "buy" rating on the stock in a report on Friday, October 2nd. Deutsche Bank Aktiengesellschaft dropped their target price on Republic Services from $270.00 to $258.00 in a research report on Friday, October 9th. Robert W. Baird increased their price objective on shares of Republic Services from $242.00 to $245.00 and gave the company a "neutral" rating in a report on Thursday, October 22nd. Finally, Wolfe Research assumed coverage on Republic Services in a research note on Tuesday, September 15th. They set a "peer perform" rating for the company. Thirteen analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $243.73.

Insider Activity

In related news, major shareholder Cascade Investment, L.L.C. acquired 324,810 shares of Republic Services stock in a transaction that occurred on Friday, September 11th. The shares were purchased at an average cost of $222.89 per share, for a total transaction of $72,396,900.90. Following the acquisition, the insider owned 117,058,444 shares in the company, valued at approximately $26,091,156,583.16. This represents a 0.28% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Over the last three months, insiders bought 6,254,462 shares of company stock worth $1,380,321,958. 0.12% of the stock is currently owned by company insiders.

Institutional Trading of Republic Services

Several hedge funds have recently made changes to their positions in the business. BlackRock Inc. acquired a new position in Republic Services during the 2nd quarter worth approximately $3,798,092,000. State Street Corp raised its holdings in shares of Republic Services by 1.6% in the 2nd quarter. State Street Corp now owns 9,953,507 shares of the business services provider's stock valued at $2,120,893,000 after purchasing an additional 160,051 shares in the last quarter. Bank of America Corp DE purchased a new stake in shares of Republic Services during the 2nd quarter worth $682,573,000. Allspring Global Investments Holdings LLC grew its stake in shares of Republic Services by 68.0% during the first quarter. Allspring Global Investments Holdings LLC now owns 2,256,190 shares of the business services provider's stock worth $497,828,000 after purchasing an additional 913,249 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in Republic Services by 1.4% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,132,434 shares of the business services provider's stock valued at $454,379,000 after buying an additional 28,996 shares during the last quarter. Institutional investors and hedge funds own 57.73% of the company's stock.

Republic Services Stock Up 3.1%

The company has a quick ratio of 0.64, a current ratio of 0.64 and a debt-to-equity ratio of 1.12. The stock has a market cap of $74.61 billion, a PE ratio of 34.57, a price-to-earnings-growth ratio of 3.75 and a beta of 0.39. The firm has a fifty day moving average of $221.99 and a 200 day moving average of $216.64.

Republic Services Company Profile

Republic Services, Inc is an environmental services company that provides waste collection, recycling and disposal solutions for residential, commercial, industrial and municipal customers. Its services include curbside collection, dumpster and roll-off container services, transfer station operations, landfill management and recycling processing.

The company also provides specialized environmental services, including hazardous waste management, emergency response, remediation and other sustainability-related solutions for businesses and government organizations.

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