Waste Management Posts Q3 Revenue Beat but Misses on Adjusted EPS, Reaffirms Full-Year Outlook

Waste Management reported third-quarter 2026 revenue of $6.85 billion, up 6.3% year over year and slightly ahead of the Wall Street consensus of $6.81 billion. Adjusted earnings per share came in at $2.15, compared with $1.98 in the year-ago period but just below the analyst consensus of $2.18, a 1.4% miss. Adjusted operating EBITDA rose 5.8% to $2.12 billion, producing a margin of 31.0%, while net income climbed to $820 million from $603 million a year earlier.

Revenue growth was driven by core pricing of 5.8% and Collection and Disposal yield of 3.4%, with total average yield up 5.1%. Volume in Collection and Disposal dipped 0.4%, reflecting the company's intentional exit from lower-margin residential contracts and losses from prior national account broker business. Cash flow from operations for the nine-month period reached $4.87 billion, and WM returned $957 million to shareholders during the quarter through dividends and buybacks.

The Healthcare Solutions segment contributed $41 million in incremental income from operations on 3.7% revenue growth, with cost improvements continuing to build. CEO Jim Fish said the quarter demonstrated "consistent execution" of WM's strategy, pointing to pricing discipline, cost optimization, and growing contributions from sustainability projects including renewable natural gas and recycling operations.

WM reaffirmed its full-year 2026 guidance, with revenue expected at the high end of the $26.275-$26.475 billion range, adjusted operating EBITDA within the $8.15-$8.25 billion range, and free cash flow at the high end of the $3.75-$3.85 billion range. Despite the revenue beat, WM shares declined on the day of the report, likely reflecting the adjusted EPS miss and EBITDA shortfall relative to consensus.