Waste management company Republic Services (NYSE: RSG) beat Wall Street’s revenue expectations in Q3 2026, with revenue up 8.2% year on year to $4.56 billion. The company’s full-year revenue guidance of $17.45 billion at the midpoint came in 0.8% above analysts’ consensus estimates. Its non-GAAP profit of $1.94 per share was 0.6% above analysts’ consensus estimates.
For more on Republic Services, read our full research report, available free.
Republic Services (RSG) Q3 2026 highlights:
- Revenue $4.56 billion vs S&P analysts’ consensus estimates of $4.42 billion (8.2% year-on-year growth, 3.1% beat)
- Adjusted EPS $1.94 vs S&P analysts’ consensus estimates of $1.93 (0.6% beat)
- Adjusted EBITDA $1.45 billion vs analysts’ consensus estimates of $1.44 billion (31.8% margin, 0.9% beat)
- Revenue guidance The company lifted its revenue guidance for the full year to $17.45 billion at the midpoint from $17.25 billion, a 1.2% increase
- EBITDA guidance $5.56 billion at the midpoint for the full year, in line with analysts’ consensus estimates
- Operating margin 20.2%, in line with the same quarter last year
- Free cash flow margin 14.1%, down from 18.3% in the same quarter last year
- Market capitalization $71.47 billion
"We delivered strong third quarter results that underscored the resilience of our business model and the effectiveness of our strategy," said Jon Vander Ark, president and chief executive officer. "Positive growth trends across the business and improved performance in Environmental Solutions reinforce our confidence in the opportunities ahead. We remain focused on disciplined pricing, effective cost management and strategic investments that are designed to strengthen our competitive position and create long-term value for our customers and shareholders."
Revenue growth
Reviewing a company’s long-term revenue performance reveals insights into its quality. Even a poor business can perform well for one or two quarters, but a top-tier one grows for years. Republic Services’s revenue grew at a solid 9.6% compounded annual growth rate over the last five years. Its growth beat the average industrials company and shows its offerings resonate with customers.
Long-term growth matters most, but within industrials, a half-decade historical view may miss cycles, industry trends or a company capitalizing on catalysts such as a new contract win or a successful product line. Republic Services’s recent performance shows its demand has slowed as its annualized revenue growth of 4.4% over the last two years was below its five-year trend. Decelerating revenue growth in the sector warrants caution, as it could signal changing consumer tastes aided by low switching costs. 
This quarter, Republic Services reported year-on-year revenue growth of 8.2%, and its $4.56 billion of revenue exceeded Wall Street’s consensus estimates by 3.1%.
Looking ahead, sell-side analysts expect revenue to grow 4.3% over the next 12 months, according to S&P, similar to its two-year rate. This projection is uninspiring and suggests its newer products and services will not lead to better top-line performance yet.
Operating margin
Republic Services has performed well over the last five years. It demonstrated strong profitability for an industrials business, with an average operating margin of 19.2%. That result is unsurprising given its favorable gross margin baseline.
Looking at the trend in its profitability, Republic Services’s operating margin rose by 2.1 percentage points over the last five years, as its revenue growth gave it operating leverage.
This quarter, Republic Services generated an operating margin of 20.2%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable.
Earnings per share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth. For example, a company could inflate its revenue through excessive spending on advertising and promotions.
Republic Services’s EPS grew at an 11.9% compounded annual growth rate over the last five years, higher than its 9.6% annualized revenue growth. This indicates the company became more profitable on a per-share basis as it expanded.
A closer look at Republic Services’s earnings helps explain its performance. Republic Services’s operating margin was flat this quarter but expanded by 2.1 percentage points over the last five years. In addition, its share count shrank by 4%. These are positive signs for shareholders because improving profitability and share buybacks boost EPS growth relative to revenue growth. 
As with revenue, analyzing EPS over a more recent period can provide insight into an emerging theme or development for the business.
For Republic Services, its two-year annual EPS growth of 7.4% was lower than its five-year trend.
In Q3, Republic Services reported adjusted EPS of $1.94, up from $1.90 in the same quarter last year. This result was close to analysts’ consensus estimates. Over the next 12 months, Wall Street expects Republic Services’s full-year EPS to grow 8.4% from $7.25 to $7.86, according to S&P.
Key takeaways from Republic Services’s Q3 results
Republic Services’ revenue beat and slightly better-than-expected full-year revenue guidance gave the quarter some clear positives. Revenue topped analysts’ consensus estimates, and the full-year outlook came in just above Wall Street’s consensus. Shares remained flat at $237.00 immediately after the report.
Republic Services may have had a good quarter, but that alone doesn’t make the stock a buy. Before investing, consider the bigger picture of valuation and business quality alongside the latest earnings. Read more in the full research report here (it’s free).
