Waste management company Republic Services (NYSE: RSG) beat Wall Street’s revenue expectations in Q2 CY2026, with sales up 4.6% year on year to $4.43 billion. The company expects the full year’s revenue to be around $17.25 billion, close to analysts’ estimates. Its non-GAAP profit of $1.85 per share was 1.7% above analysts’ consensus estimates.
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Republic Services (RSG) Q2 CY2026 Highlights:
- Revenue: $4.43 billion vs analyst estimates of $4.36 billion (4.6% year-on-year growth, 1.5% beat)
- Adjusted EPS: $1.85 vs analyst estimates of $1.82 (1.7% beat)
- Adjusted EBITDA: $1.42 billion vs analyst estimates of $1.39 billion (32.1% margin, 2.3% beat)
- Adjusted EPS guidance for the full year is $7.26 at the midpoint, roughly in line with what analysts were expecting
- EBITDA guidance for the full year is $5.54 trillion at the midpoint, above analyst estimates of $5.53 billion
- Operating Margin: 20.3%, in line with the same quarter last year
- Free Cash Flow Margin: 11.9%, down from 16.4% in the same quarter last year
- Market Capitalization: $63.69 billion
"Our second quarter results reflect the strength and resilience of our business model, as we continue to execute our strategy and deliver differentiated value for our customers," said Jon Vander Ark, president and chief executive officer.
Company Overview
Processing several million tons of recyclables annually, Republic (NYSE: RSG) provides waste management services for residences, companies, and municipalities.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Luckily, Republic Services’s sales grew at a solid 9.9% compounded annual growth rate over the last five years. Its growth beat the average industrials company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, 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 4.2% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
This quarter, Republic Services reported modest year-on-year revenue growth of 4.6% but beat Wall Street’s estimates by 1.5%.
Looking ahead, sell-side analysts expect revenue to grow 4.4% over the next 12 months, similar to its two-year rate. This projection doesn’t excite us and indicates its newer products and services will not catalyze better top-line performance yet.
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Operating Margin
Republic Services has been a well-oiled machine over the last five years. It demonstrated elite profitability for an industrials business, boasting an average operating margin of 19.2%. This result isn’t surprising as its high gross margin gives it a favorable starting point.
Analyzing the trend in its profitability, Republic Services’s operating margin rose by 1.9 percentage points over the last five years, as its sales growth gave it operating leverage.
In Q2, Republic Services generated an operating margin profit margin of 20.3%, in line with the same quarter last year. This indicates the company’s cost structure has recently been stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Republic Services’s EPS grew at 12.4% compounded annual growth rate over the last five years, higher than its 9.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
Diving into the nuances of Republic Services’s earnings can give us a better understanding of its performance. As we mentioned earlier, Republic Services’s operating margin was flat this quarter but expanded by 1.9 percentage points over the last five years. On top of that, its share count shrank by 3.9%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. 
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For Republic Services, its two-year annual EPS growth of 9.5% was lower than its five-year trend. We hope its growth can accelerate in the future.
In Q2, Republic Services reported adjusted EPS of $1.85, up from $1.77 in the same quarter last year. This print beat analysts’ estimates by 1.7%. Over the next 12 months, Wall Street expects Republic Services’s full-year EPS to grow 6.2% from $7.21 to $7.65.
Key Takeaways from Republic Services’s Q2 Results
We were impressed by Republic Services’s optimistic full-year EBITDA guidance, which blew past analysts’ expectations. We were also happy its revenue outperformed Wall Street’s estimates. Overall, we think this was a decent quarter with some key metrics above expectations. The stock remained flat at $209.83 immediately following the results.
Sure, Republic Services had a solid quarter, but if we look at the bigger picture, is this stock a buy? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
