Rollins Sees Early Signs of Lead Recovery After AI Search Disruption, RBC Says

12:22 PM EDT, 10/23/2026 (MT Newswires) -- Rollins (ROL) has seen early signs of improvement in customer leads after AI-powered search disrupted its residential business, though the timing of a full recovery remains uncertain, RBC Capital Markets said in a note emailed Friday. Residential organic growth slowed to 2.3% as AI chatbots began recommending a wider range of pest-control providers with varying results, fragmenting how customers find the company, the investment firm said. Website traffic declines slowed in September and Rollins is shifting marketing spending to its best channels rather than raising its budget, though it does not expect a quick rebound in Q4, the note added. Door-to-door brands HomeTeam and Fox delivered double-digit growth well above the company average, and termite backlog ended the quarter at its highest level of the year, RBC said. RBC kept the company's sector perform rating and $40 price target. Price: 34.56, Change: -0.75, Percent Change: -2.12