Rentokil Initial (NYSE:RTO) Issues Earnings Results, Misses Estimates By $0.32 EPS

Posted by Brenda Bartman on Jul 30th, 2026

Rentokil Initial (NYSE:RTO – Get Free Report) announced its quarterly earnings data on Thursday. The company reported $0.34 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.66 by ($0.32), FiscalAI reports. The company had revenue of $1.79 billion for the quarter, compared to analyst estimates of $3.53 billion.

Here are the key takeaways from Rentokil Initial’s conference call:

Improved first-half financial performance: Revenue rose 4.5% to $3.59 billion, operating profit increased 6.6%, EPS grew 8.3%, and free-cash-flow conversion reached 96%. Leverage fell to 2.4x, within the company’s target range, and the interim dividend increased 8%.
International Pest Control growth accelerated: Organic growth in the segment reached 5.4% in the second quarter, while customer and colleague retention continued to improve. Management said the company remains on track to deliver full-year profit in line with market expectations.
North America remains mixed: Residential Pest Control is improving, supported by pricing, regional brands, and better retention, but commercial growth remains weak and customer losses increased in some small and mid-sized accounts. Residential lead flow also softened late in the second quarter and into July, particularly for termite services.
Cost savings are funding reinvestment: North America generated $45 million of gross savings in the first half and exited the period with an approximately $90 million annualized run rate. The company sees additional efficiency opportunities globally, although it is retiring its 2027 20% North America margin target to prioritize growth investment.
Multi-year transformation and simplification underway: Management plans to separate U.S. residential and commercial operations, standardize branch processes, improve sales execution, and review the global portfolio for potential simplification or exits. Executives expect steady progress, but acknowledged that some initiatives could take up to two years to fully implement.

Rentokil Initial Price Performance

RTO stock traded down $5.20 during midday trading on Thursday, reaching $24.23. 5,717,718 shares of the stock were exchanged, compared to its average volume of 818,296. Rentokil Initial has a 52 week low of $23.25 and a 52 week high of $34.67. The company has a fifty day moving average price of $29.61 and a 200 day moving average price of $31.27. The company has a current ratio of 1.16, a quick ratio of 1.07 and a debt-to-equity ratio of 0.76.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on RTO. Weiss Ratings reissued a “hold (c)” rating on shares of Rentokil Initial in a report on Wednesday, June 24th. Wall Street Zen cut Rentokil Initial from a “buy” rating to a “hold” rating in a research report on Monday, July 20th. The Goldman Sachs Group raised Rentokil Initial from a “neutral” rating to a “buy” rating in a research note on Monday, July 6th. Finally, Zacks Research downgraded shares of Rentokil Initial from a “hold” rating to a “strong sell” rating in a research note on Monday, June 15th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $34.50.

Get Our Latest Analysis on RTO

Institutional Trading of Rentokil Initial

Hedge funds and other institutional investors have recently made changes to their positions in the company. Jane Street Group LLC boosted its position in Rentokil Initial by 292.0% during the 1st quarter. Jane Street Group LLC now owns 117,341 shares of the company’s stock worth $2,687,000 after buying an additional 87,405 shares during the period. Creative Planning acquired a new position in shares of Rentokil Initial during the second quarter worth $393,000. JPMorgan Chase & Co. grew its stake in shares of Rentokil Initial by 2,549.7% in the second quarter. JPMorgan Chase & Co. now owns 93,165 shares of the company’s stock worth $2,236,000 after purchasing an additional 89,649 shares during the last quarter. Russell Investments Group Ltd. increased its holdings in Rentokil Initial by 40.0% in the second quarter. Russell Investments Group Ltd. now owns 4,582 shares of the company’s stock valued at $110,000 after purchasing an additional 1,309 shares during the period. Finally, M&T Bank Corp increased its holdings in Rentokil Initial by 19.7% in the second quarter. M&T Bank Corp now owns 10,557 shares of the company’s stock valued at $253,000 after purchasing an additional 1,736 shares during the period. 9.91% of the stock is currently owned by institutional investors.

About Rentokil Initial

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Rentokil Initial PLC is a global business services company specializing in pest control, hygiene and workwear services. Headquartered in Crawley, West Sussex, United Kingdom, the company delivers outsourced solutions designed to protect people, preserve assets and enhance workplaces for both commercial and residential customers.

Under the Rentokil Pest Control brand, the company offers services ranging from routine inspections and treatment of insects, rodents and birds to specialised programmes for food manufacturing and healthcare environments.