Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Republic Services delivered revenue growth in the second quarter of fiscal 2026, driven by strong pricing and acquisitions, although volume declines and higher fuel costs moderated earnings growth. The company's average yield increased 3.4% and acquisitions contributed 1.1% to revenue, while fuel costs per gallon surged from $3.56 to $5.35, driving a 47% increase in total fuel expense. Favorable tax items, including $41 million in renewable energy credits, helped lift net income despite operational headwinds. Management updated full-year guidance, projecting revenue of $17.2–$17.3 billion and adjusted diluted EPS of $7.23–$7.28.
Revenue
$5.08B
+3.97% YoY
EPS (Diluted)
$1.84
+5.14% YoY
Operating Income
$901M
+4.65% YoY
Source: SEC XBRL
Republic Services (RSG) reported Q2 FY2026 revenue of $5.08B, up 4.0% year over year. Operating margin was 17.8%, up 0.2 points from 17.6% a year earlier. RSG's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.85 | 1.83 | Beat +1.0% |
| Mar 2026 | 1.70 | 1.65 | Beat +2.8% |
| Dec 2025 | 1.76 | 1.64 | Beat +7.4% |
| Sep 2025 | 1.90 | 1.80 | Beat +5.6% |
Adjusted (non-GAAP) EPS of $1.85 versus the $1.83 analyst consensus — a +1.0% beat for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.84.
Compiled by AI from 10-Q Item 2 of this filing
Core price on related business revenue reached 6.4%, with average yield of 3.4% across all lines, while total volume declined 1.6% due to municipal contract losses and a construction slowdown.
Source: 10-Q Item 2 MD&A
The national average diesel cost per gallon jumped to $5.35 from $3.56 in the prior-year quarter, pushing total fuel expense up to $171 million, a 47% increase.
Source: 10-Q Item 2 MD&A
Net benefits of $41 million from renewable energy investments reduced the effective tax rate to 19.0% from 23.6% in Q2 2025.
Source: 10-Q Item 2 MD&A
Management expects full-year 2026 revenue between $17.2 billion and $17.3 billion and adjusted diluted EPS of $7.23 to $7.28, reflecting confidence in pricing and acquisitions.
Source: 10-Q Item 2 MD&A
Revenue from environmental solutions fell slightly by 0.2% in the quarter due to lower event-based volumes compared to the prior year.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 2 of this filing · 2 high, 3 medium, 0 low
Residential and small-container collection volumes are declining due to municipal contract losses and reduced construction activity, which could pressure future revenue growth.
Source: 10-Q Item 2 MD&A
The company’s fuel costs are highly sensitive to diesel prices, as demonstrated by the 47% increase in fuel expense when average diesel rose to $5.35 per gallon, directly impacting operating margins.
Source: 10-Q Item 2 MD&A
Revenue growth from acquisitions added 1.1% in the quarter, but integration challenges or failure to realize expected synergies could adversely affect profitability.
Source: 10-Q Item 2 MD&A
A significant portion of net income improvement came from renewable energy tax benefits; any reduction or expiration of these credits could increase the effective tax rate and reduce earnings.
Source: 10-Q Item 2 MD&A
Labor and related benefits increased due to annual merit increases and acquisition growth, and continued wage pressure could erode margins unless offset by pricing.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 5.08 $B | 4.88 $B | +3.97% |
Cost of Revenue $B | 2.56 $B | 2.45 $B | +4.65% |
Operating Income $M | 901.00 $M | 861.00 $M | +4.65% |
Net Income $M | 566.08 $M | 549.91 $M | +2.94% |
EPS (Basic) $ | 1.84 $ | 1.76 $ | +4.55% |
EPS (Diluted) $ | 1.84 $ | 1.75 $ | +5.14% |
SG&A Expense $M | 444.00 $M | 425.00 $M | +4.47% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Republic Services (RSG) delivered solid Q1 2026 results with revenue up 2.3% YoY to $4.70B, net income rising 6.1% to $525M, and operating cash flow surging 19.7% to $1.23B, reflecting steady pricing power and disciplined cost management in the waste services sector.
Republic Services (RSG) delivered steady FY2025 growth with revenue rising 3.3% to $19.0B, net income up 4.7% to $2.1B, and operating cash flow surging 9.1% to $4.3B, reflecting disciplined pricing and cost management in the solid waste industry.
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