Waste management company Republic Services (NYSE: RSG) met Wall Street’s revenue expectations in Q1 CY2026, with sales up 2.6% year on year to $4.11 billion. Its non-GAAP profit of $1.70 per share was 3.8% above analysts’ consensus estimates.
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Republic Services (RSG) Q1 CY2026 Highlights:
- Revenue: $4.11 billion vs analyst estimates of $4.10 billion (2.6% year-on-year growth, in line)
- Adjusted EPS: $1.70 vs analyst estimates of $1.64 (3.8% beat)
- Adjusted EBITDA: $1.32 billion vs analyst estimates of $1.30 billion (32.1% margin, 1.4% beat)
- Operating Margin: 20.2%, in line with the same quarter last year
- Free Cash Flow Margin: 18.3%, similar to the same quarter last year
- Sales Volumes were flat year on year (1.2% in the same quarter last year)
- Market Capitalization: $61.7 billion
"We are off to a strong start and remain well positioned to achieve our full‑year objectives," 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
Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, Republic Services’s 10.4% annualized revenue growth over the last five years was solid. Its growth beat the average industrials company and shows its offerings resonate with customers.
Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Republic Services’s recent performance shows its demand has slowed as its annualized revenue growth of 4.7% 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. 
We can better understand the company’s revenue dynamics by analyzing its number of units sold. Over the last two years, Republic Services’s units sold were flat. Because this number is lower than its revenue growth, we can see the company benefited from price increases. 
This quarter, Republic Services grew its revenue by 2.6% year on year, and its $4.11 billion of revenue was in line with Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 4.1% over the next 12 months, similar to its two-year rate. This projection is underwhelming and suggests its newer products and services will not lead to 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 19.1%. This result isn’t surprising as its high gross margin gives it a favorable starting point.
Looking at the trend in its profitability, Republic Services’s operating margin rose by 1.5 percentage points over the last five years, as its sales growth gave it operating leverage.
This quarter, Republic Services generated an operating margin profit 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
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 13.8% compounded annual growth rate over the last five years, higher than its 10.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
Diving into Republic Services’s quality of 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 1.5 percentage points over the last five years. On top of that, its share count shrank by 3.3%. 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 10.8% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future.
In Q1, Republic Services reported adjusted EPS of $1.70, up from $1.58 in the same quarter last year. This print beat analysts’ estimates by 3.8%. Over the next 12 months, Wall Street expects Republic Services’s full-year EPS of $7.13 to grow 4%.
Key Takeaways from Republic Services’s Q1 Results
It was encouraging to see Republic Services beat analysts’ adjusted operating income expectations this quarter. We were also happy its EBITDA narrowly outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $202.03 immediately after reporting.
Is Republic Services an attractive investment opportunity at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
