The EPS miss relative to consensus is the headline, but the company affirmed full-year guidance with revenue and FCF expected at the high end of ranges. Watch the Q4 2026 earnings call for any revision to 2027 outlook, particularly on margin trajectory given fuel cost and risk management headwinds.
Price Chart
Executive Summary
WM reported Q3 2026 revenue of $6.846B (up 6.3% YoY) and GAAP diluted EPS of $2.05, below the consensus estimate of $2.18. Adjusted diluted EPS was $2.15, also below consensus. The company affirmed its full-year 2026 guidance, with revenue expected at the high end of $26.275-$26.475B and free cash flow at the high end of $3.75-$3.85B. Strong cash flow generation supported $957M returned to shareholders in the quarter.
Key Financial Metrics
Key Facts
- Q3 2026 revenue of $6.846B, up 6.3% YoY from $6.443B
- GAAP diluted EPS of $2.05 vs $1.49 in prior year; adjusted diluted EPS of $2.15 vs $1.98
- Consensus EPS estimate was $2.18; actual GAAP EPS of $2.05 represents a miss of ~6.0%
- Adjusted operating EBITDA of $2.121B, up 5.8% YoY from $2.005B
- Adjusted operating EBITDA margin compressed 10 bps to 31.0% from 31.1%
- Free cash flow of $985M in Q3, up from $821M in prior year; $3.009B YTD
- Company returned $957M to shareholders in Q3 ($580M buybacks, $377M dividends)
- Full-year 2026 guidance affirmed: revenue $26.275-$26.475B (high end expected), adjusted EBITDA $8.15-$8.25B, FCF $3.75-$3.85B (high end expected)
- Healthcare Solutions income from operations increased by $41M YoY
- Collection and Disposal volume declined 0.4% (0.5% workday adjusted)
Financial Impact
GAAP EPS of $2.05 missed consensus of $2.18 by ~$0.13 or 6.0%; revenue of $6.846B slightly above consensus of $6.81B
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Collection and Disposal | $5.6B | +4.8% |
| Recycling Processing and Sales | $441.0M | +18.5% |
| Renewable Energy | $167.0M | +45.2% |
| Healthcare Solutions | $651.0M | +3.7% |
| Corporate and Other | $8.0M | +14.3% |
Risk Factors
- GAAP EPS of $2.05 missed consensus of $2.18, which could pressure the stock near-term
- Adjusted operating EBITDA margin compressed 10 bps YoY due to higher fuel costs and risk management costs
- Collection and Disposal volume continued to decline (0.4% in Q3, 1.3% YTD) due to shedding of lower-margin residential business and broker losses
- Operating expenses as a percentage of revenue increased to 59.8% from 58.9% in prior year
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-119188 |
| Document: tm2628322d1_8k.htm | 0001104659-26-119188 |
| Document: 0001104659-26-119188-index-headers.html | 0001104659-26-119188 |
| Document: 0001104659-26-119188-index.html | 0001104659-26-119188 |
| Document: 0001104659-26-119188.txt | 0001104659-26-119188 |
| 8-K Data (Synthetic) | 0001104659-26-119188 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 5d ago | 8-K | $225.15 | awaiting T+60 | awaiting T+60 | $233.45 (+3.69%) |
Oct 15, 2026 17d ago | Institutional Cluster | $224.19 | awaiting T+60 | awaiting T+60 | $233.45 (+4.13%) |
Aug 26, 2026 9w ago | 8-K | $221.24 | awaiting T+60 | awaiting T+60 | $233.45 (+5.52%) |
May 13, 2026 24w ago | 8-K | $216.44 $227.68 | ▲ +5.19% | ▲ +0.76% | $233.45 (+7.86%) |
May 13, 2026 24w ago | Court Ruling | $216.92 $225.85 | ▲ +4.12% | ▲ +0.86% | $233.45 (+7.62%) |
Mar 2, 2026 34w ago | Insider Cluster | $242.11 $215.48 | ▼ −11.00% | ▼ −20.32% | $233.45 (−3.58%) |
Mar 2, 2026 34w ago | Insider Cluster | $242.11 $215.48 | ▲ +11.00% | ▲ +20.32% | $233.45 (+3.58%) |
Mar 2, 2026 34w ago | Insider Cluster | $242.11 $215.48 | ▲ +11.00% | ▲ +20.32% | $233.45 (+3.58%) |
Feb 26, 2026 35w ago | Insider Cluster | $232.97 $217.75 | ▼ −6.53% | ▼ −14.29% | $233.45 (+0.20%) |
Feb 26, 2026 35w ago | Insider Cluster | $232.97 $217.75 | ▲ +6.53% | ▲ +14.29% | $233.45 (−0.20%) |
US Market Status
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