GET DAILY SIGNALSWaste Management (WM) Delivers Q3 2026 Revenue Growth and Robust Cash Flow
Key Takeaways
- WM reported third quarter 2026 revenue of $6.85 billion, up 6.3% year over year and above the $6.81 billion consensus estimate.
- Adjusted earnings per share (EPS) came in at $2.15, narrowly below the $2.18 consensus, while reported diluted EPS was $2.05 versus $1.49 a year earlier.
- Free cash flow rose more than 42% through the first nine months of 2026 to $3.01 billion, a key highlight for investors.
- The company returned $957 million to shareholders in the quarter through $580 million in buybacks and $377 million in dividends.
- WM affirmed its full-year 2026 guidance and expects revenue to land at the high end of its $26.275 billion to $26.475 billion range.
- Healthcare Solutions revenue grew 3.7% while operating EBITDA increased more than 30%.
- For deeper context on WM, explore Major News, Today's Price Move, Price Targets, and Forecast to track how the story develops.
- You can also discover actionable, AI-driven market ideas by exploring Trending AI Robots.
Earnings Context and Why It Matters
WM, North America's largest provider of environmental solutions, operates a diversified model spanning collection and disposal, recycling, renewable energy, and healthcare waste services. Its quarterly results offer investors a read on pricing power, cost discipline, and the payoff from multi-year investments in automation and sustainability infrastructure. The third quarter is particularly important because it follows the integration of Stericycle, now reported as the Healthcare Solutions segment, and tests whether margin and cash-flow gains are durable amid higher fuel and risk-management costs. With management reaffirming its full-year outlook, this report serves as a checkpoint on execution heading into the fourth quarter and the next fiscal year. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
WM reported third quarter 2026 revenue of $6.846 billion, a 6.3% increase from $6.443 billion in the prior-year period, driven by core price growth of 5.8% and a 3.4% Collection and Disposal yield. Revenue exceeded the consensus estimate of roughly $6.81 billion. Net income attributable to the company was $820 million, up from $603 million a year earlier, while diluted EPS was $2.05 compared with $1.49. On an adjusted basis, EPS was $2.15, slightly below the $2.18 consensus, while adjusted operating EBITDA rose 5.8% to $2.121 billion. Adjusted operating EBITDA margin compressed modestly to 31.0%, as favorable price-to-cost spread and healthcare contributions were partly offset by higher fuel and risk-management costs.
Market Reaction and Investor Sentiment
WM shares closed at $235.81, down about 2.2% on the day results were announced, as the modest adjusted EPS miss against consensus appeared to weigh on sentiment even though revenue topped estimates and cash-flow generation was strong. Investors appeared to balance the company's robust free cash flow and affirmed guidance against near-term margin pressure from fuel costs and elevated risk-management expenses. The stock's decline also reflects the market's focus on the slight earnings shortfall rather than the top-line beat, a reminder that the market often reacts to the earnings-per-share figure relative to expectations.
Forward Outlook and Key Factors to Monitor
WM affirmed its 2026 guidance and said it expects full-year revenue at the high end of its $26.275 billion to $26.475 billion range, adjusted operating EBITDA within $8.15 billion to $8.25 billion, and free cash flow at the high end of $3.75 billion to $3.85 billion. The company also reaffirmed its plan to repurchase $2 billion of shares in 2026.
Investors should monitor several variables in the coming quarters. First, the trajectory of fuel and risk-management costs, which pressured margins in the third quarter, will be a key swing factor for profitability. Second, the ongoing integration of Healthcare Solutions and the pace of synergy capture will influence segment-level earnings growth. Third, recycling and renewable energy volumes tied to recently completed growth projects, including the new renewable natural gas facility in New York, represent an important catalyst for revenue expansion. Finally, Collection and Disposal volumes, which declined modestly due to intentional shedding of lower-margin business, will be watched for signs of stabilization. These factors, rather than any single quarter's result, are likely to shape the investment narrative around WM going forward.
Using AI Tools in My Research
In my regular analysis, I turn to Tickeron’s AI Screener to quickly filter opportunities and compare names like WM against peers on fundamentals and technical signals. It helps surface ideas efficiently without replacing my own judgment on cash flow trends or guidance updates. This approach keeps my process grounded while highlighting areas worth deeper review.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
WM in upward trend: 10-day moving average moved above 50-day moving average on October 20, 2026
The 10-day moving average for WM crossed bullishly above the 50-day moving average on October 20, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 10 of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 67%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 06, 2026. You may want to consider a long position or call options on WM as a result. In 38 of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 46%.
The Moving Average Convergence Divergence (MACD) for WM just turned positive on October 06, 2026. Looking at past instances where WM's MACD turned positive, the stock continued to rise in 27 of 47 cases over the following month. The odds of a continued upward trend are 57%.
WM moved above its 50-day moving average on October 15, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +0.80% 3-day Advance, the price is estimated to grow further. Considering data from situations where WM advanced for three days, in 162 of 335 cases, the price rose further within the following month. The odds of a continued upward trend are 48%.
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 8 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 14 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where WM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 45%.
WM broke above its upper Bollinger Band on October 14, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for WM entered a downward trend on October 13, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 16 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 24 (best 1 - 100 worst), indicating outstanding price growth. WM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 30 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 34 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 78 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.497) is normal, around the industry mean (47.600). P/E Ratio (33.306) is within average values for comparable stocks, (54.720). Projected Growth (PEG Ratio) (1.888) is also within normal values, averaging (1.132). Dividend Yield (0.016) settles around the average of (0.015) among similar stocks. P/S Ratio (3.367) is also within normal values, averaging (72.867).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a provider of waste management services
Industry EnvironmentalServices
Advertisement