WM Announces Third Quarter 2026 Earnings
WASTE MANAGEMENT INC (WM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 WM Announces Third Quarter 2026 Earnings Strong Cash Flow from Operations Supports Return of $957 Million to Shareholders During the Quarter Healthcare Solutions Increases Income from Operations by $41 Million Driven by 3.7% Revenue Growth and Growing Cost Improvemen
How this was made
The 30-second read
Why it matters
The earnings release provides fresh data for valuation models and confirms the company's 2026 financial targets, likely leading to a modest price adjustment.
Market read
Primary earnings disclosure for a large‑cap U.S. stock; relevant for waste‑management sector investors and dividend‑focused traders.
What to watch
Potential impact of rising fuel and risk‑management costs on margins may weigh on future earnings.
WM Announces Third Quarter 2026 Earnings Strong Cash Flow from Operations Supports Return of $957 Million to Shareholders During the Quarter Healthcare Solutions Increases Income from Operations by $41 Million Driven by 3.7% Revenue Growth and Growing Cost Improvements
Revenue grew 6.3%, adjusted operating EBITDA increased 5.8%, and nine-month free cash flow increased more than 42%, while adjusted operating EBITDA margin compressed 10 basis points and Collection and Disposal volume declined 0.5% on a workday adjusted basis.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Operating revenues, three months ended September 30, 2026GAAP | $6.85B | – | 6.3% |
| Income from operations, three months ended September 30, 2026GAAP | $1.28B | – | – |
| Adjusted income from operations, three months ended September 30, 2026non-GAAP | $1.33B | – | – |
| Operating EBITDA, three months ended September 30, 2026other | $2.07B | – | – |
| Operating EBITDA margin, three months ended September 30, 2026other | 30.3% | – | – |
| Adjusted operating EBITDA, three months ended September 30, 2026non-GAAP | $2.12B | – | 5.8% |
| Adjusted operating EBITDA margin, three months ended September 30, 2026non-GAAP | 31.0% | – | compressed by 10 basis points |
| Operating expenses, three months ended September 30, 2026GAAP | $4.09B | – | – |
| Operating expenses as a % of net revenues, three months ended September 30, 2026GAAP | 59.8% | – | – |
| SG&A expenses, three months ended September 30, 2026GAAP | $655M | – | – |
| SG&A expenses as a % of net revenues, three months ended September 30, 2026GAAP | 9.6% | – | improvement of 70 basis points |
| Adjusted SG&A expenses, three months ended September 30, 2026non-GAAP | $634M | – | – |
| Adjusted SG&A expenses as a % of net revenues, three months ended September 30, 2026non-GAAP | 9.3% | – | improvement of 70 basis points |
| Depreciation, depletion, amortization and accretion, three months ended September 30, 2026GAAP | $792M | – | – |
| Restructuring, three months ended September 30, 2026GAAP | $9M | – | – |
| Income before income taxes, three months ended September 30, 2026GAAP | $1.04B | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | $224M | – | – |
| Net income attributable to Waste Management, Inc., three months ended September 30, 2026GAAP | $820M | – | – |
| Adjusted net income, three months ended September 30, 2026non-GAAP | $858M | – | – |
| Diluted earnings per common share, three months ended September 30, 2026GAAP | $2.05 | – | – |
| Adjusted diluted earnings per share, three months ended September 30, 2026non-GAAP | $2.15 | – | – |
| Net cash provided by operating activities, three months ended September 30, 2026GAAP | $1.64B | – | – |
| Free cash flow, three months ended September 30, 2026non-GAAP | $985M | – | – |
| Operating revenues, nine months ended September 30, 2026GAAP | $19.76B | – | 4.6% |
| Income from operations, nine months ended September 30, 2026GAAP | $3.65B | – | – |
| Net income attributable to Waste Management, Inc., nine months ended September 30, 2026GAAP | $2.33B | – | – |
| Diluted earnings per common share, nine months ended September 30, 2026GAAP | $5.79 | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $4.87B | – | 12.0% |
| Free cash flow, nine months ended September 30, 2026non-GAAP | $3.01B | – | increase of more than 42% |
| Conversion of adjusted operating EBITDA to free cash flow, nine months ended September 30, 2026non-GAAP | 50% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Collection and DisposalCollection and Disposal yield was 3.4%, while volume declined 0.5% on a workday adjusted basis. | $5.58B | – | – |
| Recycling Processing and SalesRevenue growth was supported by higher volumes in the recycling business as a result of completed growth projects. | $441M | – | – |
| Renewable EnergyRevenue growth was supported by higher volumes in the renewable energy business as a result of completed growth projects. | $167M | – | – |
| Healthcare SolutionsOperating EBITDA increased more than 30%, driven by effective cost management, synergy capture, and pricing growth. | $651M | – | 3.7% |
| Corporate and OtherNo segment-specific driver was provided. | $8M | – | – |
Year ended December 31, 2026 outlook
- Revenue$26.275 to $26.475 billion
- NoteAdjusted operating EBITDA: $8.15 to $8.25 billion
- NoteFree cash flow: $3.75 to $3.85 billion
- NoteThe Company expects to repurchase a total of $2 billion of its shares in 2026.
- NoteRevenue is expected to be at the high end of the guidance range.
- NoteFree cash flow is expected to be at the high end of the guidance range.
Capital returns
- The Company returned $957 million to shareholders in the third quarter, consisting of $580 million in share repurchases and $377 million in cash dividends.
- Through the first nine months of the year, returns to shareholders were more than $2.72 billion.
- Through the first nine months of the year, the Company repurchased $1.58 billion of its shares.
- Cash dividends for the nine months ended September 30, 2026 were $1,141 million.
What drove it
- Total Company revenue grew 6.3%, driven by core price of 5.8% and Collection and Disposal yield of 3.4%.
- Increased energy surcharges and higher recycling and renewable energy volumes from completed growth projects supported revenue growth.
- Favorable price-to-cost spread in Collection and Disposal contributed 40 basis points to adjusted operating EBITDA margin.
- Healthcare Solutions operating performance added 30 basis points to adjusted operating EBITDA margin.
- Nine-month operating cash flow growth reflected earnings growth and favorable working capital.
- The Company began operations at a new renewable natural gas facility in New York, its eighteenth new facility completed since 2022.
Concerns
- Collection and Disposal volume declined 0.4%, or declined 0.5% on a workday adjusted basis.
- Volumes continued to be affected by intentional shedding of lower-margin residential business and commercial declines largely related to prior national account broker losses.
- Operating expenses were 59.8% of revenue compared to 58.9% in the prior year.
- Higher fuel costs and increased risk management costs each reduced adjusted operating EBITDA margin by 40 basis points.
- Adjusted operating EBITDA margin compressed by 10 basis points compared to the prior-year period.
- The quarter included an $18 million impairment charge related to the decision to accelerate the closure of a landfill within the East Tier.
What to watch
- Whether Collection and Disposal pricing and cost discipline continue to offset lower workday-adjusted volumes.
- The effect of fuel costs and risk management costs on adjusted operating EBITDA margin.
- Healthcare Solutions cost improvements, synergy capture, and pricing growth.
- Execution toward revenue and free cash flow at the high ends of the 2026 guidance ranges.
- Progress toward the expected $2 billion of 2026 share repurchases.
Balance sheet and cash flow
- Cash and cash equivalents were $247 million at September 30, 2026, compared to $201 million at December 31, 2025.
- Current portion of long-term debt was $1,524 million at September 30, 2026, compared to $711 million at December 31, 2025.
- Long-term debt, less current portion, was $21,846 million at September 30, 2026, compared to $22,196 million at December 31, 2025.
- Total assets were $46,519 million at September 30, 2026, compared to $45,835 million at December 31, 2025.
- Capital expenditures were $1,937 million for the nine months ended September 30, 2026, compared to $2,339 million in the prior-year period.
- Net cash used in investing activities was $2,059 million for the nine months ended September 30, 2026, compared to $2,699 million in the prior-year period.
- Net cash used in financing activities was $2,766 million for the nine months ended September 30, 2026, compared to $1,830 million in the prior-year period.
Analysis
WM reported third-quarter operating revenues of $6,846 million, up 6.3% from $6,443 million. The company attributed the increase to core price of 5.8%, Collection and Disposal yield of 3.4%, increased energy surcharges, and higher recycling and renewable energy volumes from completed growth projects. Collection and Disposal volume declined 0.4%, or 0.5% on a workday adjusted basis, reflecting intentional shedding of lower-margin residential business and commercial declines related largely to prior national account broker losses.
Reported income from operations was $1,279 million, compared with $989 million, while adjusted income from operations was $1,329 million versus $1,241 million. Adjusted operating EBITDA increased 5.8% to $2,121 million. Adjusted operating EBITDA margin was 31.0%, compared with 31.1%, as a 40-basis-point favorable Collection and Disposal price-to-cost contribution and a 30-basis-point Healthcare Solutions contribution were more than offset by 40 basis points from higher fuel costs and 40 basis points from increased risk management costs.
Healthcare Solutions generated $651 million of revenue, with revenue growth of 3.7%, and its operating EBITDA increased more than 30% according to the company. Reported SG&A expense declined to $655 million from $665 million, and adjusted SG&A as a percentage of net revenues improved to 9.3% from 10.0%, reflecting cost discipline and continued Healthcare Solutions synergy capture. Reported net income attributable to Waste Management, Inc. was $820 million and diluted earnings per common share were $2.05; adjusted net income was $858 million and adjusted diluted earnings per share were $2.15.
Cash generation accelerated through the first nine months. Net cash provided by operating activities was $4,867 million, a 12.0% increase from $4,345 million, and free cash flow was $3,009 million compared with $2,114 million, an increase of more than 42%. The company returned $957 million during the quarter through $580 million of repurchases and $377 million of dividends, and reported more than $2.72 billion of nine-month shareholder returns. It affirmed its 2026 ranges, expects revenue and free cash flow to finish at the high ends of their respective ranges, and expects adjusted operating EBITDA to remain within its range.
Management, verbatim
WM delivered another quarter of solid operating and financial performance, in line with our expectations, underscoring the consistent execution of our strategy.
Jim Fish, WM’s CEO
Adjusted operating EBITDA increased 5.8% in the third quarter driven by strong price-to-cost spread in Collection and Disposal and growing contributions from our healthcare and sustainability businesses. Notably, Healthcare Solutions revenue grew 3.7% in the quarter and operating EBITDA increased more than 30%, driven by effective cost management, synergy capture, and pricing growth. Overall, our results reflect the earnings power of our diversified business and our ability to consistently create value for shareholders.
Jim Fish, WM’s CEO
The quality of our earnings is evident in the strength of our cash flow generation. Net cash flow from operations increased 12% through the first nine months of the year, reflecting disciplined operational execution and continued strong returns on investments that are improving productivity, enhancing service and supporting sustainable long-term growth. We are affirming our 2026 guidance ranges, as we remain on track to meet our financial objectives.
Jim Fish, WM’s CEO
Not in the filing
stated, not guessed- Gross margin was not reported.
- Prior-quarter comparisons for reported metrics were not provided.
- A prior outlook section was not provided, so comparison of actual results with prior guidance is unavailable.
- Quarterly effective tax rate on a GAAP basis was not explicitly reported.
- Segment revenue growth rates were not explicitly reported for Collection and Disposal, Recycling Processing and Sales, Renewable Energy, or Corporate and Other.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Waste Management Inc. (NYSE: WM) released its third‑quarter 2026 results, highlighting revenue growth, operating EBITDA expansion, and a $957 M shareholder return.
Ticker impact
WM filed its Q3 2026 earnings on Form 8‑K, reporting $6.85 B revenue and reaffirming its 2026 guidance.
likely modest move as investors digest reaffirmed guidance and cash‑return figures
The report provides fresh, material numbers for a large‑cap waste‑management firm; no surprise elements suggest only a measured price reaction.
Market effects
reinforces stability in the waste‑management sector, may support peers with similar guidance outlooks
U.S. market focus; limited broader regional effect
low; company‑specific earnings do not drive global market moves
Counterpoint
If investors expect a more aggressive buyback, the reaffirmed guidance could be seen as a missed upside opportunity.
Key entities
- ExecutiveJim Fish
CEO of WM who quoted the reaffirmed guidance.
