Rollins at U.S. All Stars Conference: ai search shift clouds growth

On September 23, 2026, Rollins Inc. (ROL) addressed investors at the U.S. All Stars Conference in London about a significant shift in digital discovery affecting their growth. Despite maintaining a long-standing record of organic growth, the pest-control company acknowledged that their lead generation weakened sharply in the second and third quarters of 2026, with much of the decline attributed to AI changes in search behavior. Management maintained long-term support from pricing power, brand strength, and capital returns.

Rollins guided for 6% organic revenue growth and 10% incremental margins for the fiscal year 2026, with a focus on results expected to be weighted more toward the fourth quarter. The company repurchased $100 million of stock in the third quarter, retaining balance-sheet flexibility with a leverage ratio of 1.0x. Rollins is transitioning from a Google-centric marketing model to a broader approach that includes Google Gemini, ChatGPT, Claude, Yelp, Better Business Bureau, and Reddit.

Executives explained that about 50% to 60% of the demand decline can be linked to Google's introduction of AI Overviews as the default search method on May 19, 2026. The remaining weakness appears to stem from various smaller factors not tied to consumer financial stress, regional trends, or competition. Rollins is updating 400 branch web pages to better reflect local markets, increasing price transparency, and reallocating marketing dollars to more effective channels.

While the company's brand performance has varied, its door-to-door residential brand, Fox, and HomeTeam, serving the home-building channel, have continued to grow. Rollins emphasized its people-first culture and continued its Co-lab leadership training program, aiming to complete the curriculum by the end of the fourth quarter. Management warned not to expect a quick recovery from the search-related disruption, suggesting it could persist into 2027.