Waste Management, Inc. (WM) gains after deep earnings analysis
Waste Management, Inc. (WM) gains after a deeper look at Q2 results showing an EPS beat, a modest revenue miss, and continued margin discipline. The analysis also covers segment EBITDA trends, guidance confidence, analyst support, and what the latest print may mean for the stock.
Waste Management, Inc. (WM) reported mixed Q2 2026 results, beating EPS estimates at $2.02 while revenue came in slightly below consensus at $6.68 billion. The stock rose 0.63% to $239.41, suggesting investors focused more on WM’s earnings strength, margin discipline, and continued analyst support than on the modest sales miss.
Waste Management, Inc. (WM) delivered a mixed Q2 2026 earnings report: EPS reached $2.02 versus a $1.98 estimate, while revenue came in at $6.68B against a $6.71B consensus. Shares gained 0.63% to $239.41 in the latest regular session, but trading volume stayed below its recent average.
The WM earnings print reinforces the company’s earnings discipline, although the revenue miss prevents a clean victory. The stronger profit result matters because EPS also exceeded each of the four prior actual quarterly figures listed in the earnings history.
Key Takeaways
EPS beat the $1.98 estimate at $2.02, while revenue missed the $6.71B estimate at $6.68B.
The latest quarterly financial series lists $6.68B of revenue and $0.79B of net income, both above the prior quarter’s $6.23B of revenue and $0.72B of net income.
The most detailed segment update came in WM’s April 29 Q1 call: Collection and Disposal operating EBITDA grew 6.4%, Renewable Energy EBITDA more than doubled, Recycling EBITDA rose 18%, and Healthcare Solutions EBITDA increased nearly 12%.
Q1 management reaffirmed confidence in full-year 2026 revenue and free cash flow guidance. CFO David Reed also set a full-year 2026 effective tax rate expectation of approximately 23%.
WM closed at $239.41, up 0.63%, on 1,649,996 shares traded versus an average volume of 2,145,414.
Analyst positioning remained positive around the print. WM carried a Buy consensus with 20 Buy ratings and 15 Holds, while Barclays and Citi recently raised their price targets.
Financial Performance: EPS Strength Meets a Modest Revenue Miss
The central result in this Waste Management, Inc. earnings analysis is the gap between profit and sales. WM reported Q2 EPS of $2.02, ahead of the $1.98 estimate. Revenue reached $6.68B, below the $6.71B consensus. That combination points to stronger earnings conversion, even as the top line fell short of the Street’s target.
EPS also improved against the recent earnings record. WM reported $1.81 in the April 28 quarter, $1.93 in January, $1.98 in October, and $1.92 in July 2025. The latest $2.02 result exceeds all four of those actual figures. The five-quarter financial series also lists Q2 revenue at $6.68B, above $6.23B in Q1, $6.31B in Q4 2025, $6.44B in Q3, and $6.43B in Q2 2025.
Net income in the latest quarterly financial series was $0.79B, compared with $0.72B in Q1 and $0.74B in Q4 2025. The earnings profile therefore shows a company producing higher profit alongside its strongest listed quarterly revenue figure. Still, the revenue miss matters because Waste Management operates a scale-heavy model, where modest changes in volume, pricing, and cost control can shape the final earnings result.
The available operating detail from the April 29 WM earnings call shows how the company has been defending margins. Collection and Disposal operating EBITDA grew 6.4% in Q1, with margin expansion of approximately 110 basis points. Operating expenses stayed below 60% of revenue for the fifth consecutive quarter. Management also reported a 27% decline in single-stream commodity pricing, yet Recycling EBITDA rose 18% because automation lowered labor costs, material quality improved, and processed volume increased 9%.
Other line items added support. Q1 free cash flow nearly doubled to $920M, operating cash flow reached $1.5B, and capital expenditures totaled $650M. WM returned about $730M to shareholders through $385M of dividends and $344M of share repurchases. Leverage ended that quarter at 2.94x, within management’s 2.5x to 3x target range.
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WM’s latest regular-session close was $239.41, a gain of 0.63%. Volume was 1,649,996 shares, below the 2,145,414 average. That price action signals a measured response rather than a sharp repricing after the EPS beat and revenue miss.
The analyst picture remained favorable. WM’s consensus rating was Buy, supported by 20 Buy ratings and 15 Holds. No Sell or Strong Sell ratings appeared in the consensus breakdown.
Recent target changes also leaned positive. Barclays analyst William Grippin raised the target to $270 from $266 and kept an Overweight rating. Citi analyst Bryan Burgmeier lifted the target to $269 from $263 and maintained Buy. Baird held a Buy rating and listed a $268 target on July 20, compared with $265 previously.
There were more measured actions as well. Wells Fargo cut its target to $268 from $273 while keeping Overweight on April 30. CIBC carried a Buy rating with a $244 target after a July 7 upgrade. Scotiabank raised its target from $250 to $260 on July 16 while maintaining Sector Perform. The range shows that analysts generally value WM above the latest $239.41 share price, although ratings and target levels still vary.
The broader analyst thesis has centered on pricing, technology, and operating efficiency. An older Oppenheimer note cited WM’s technology leadership, a $250M cost-savings target by 2027, and a $2.5B cross-selling opportunity. Those themes match the operating data from WM’s Q1 call, where automation and cost control offset weaker recycling prices and softer volume conditions.
Management Commentary: Strategy, Cash Flow, and Tax Guidance
The latest detailed management comments came from the April 29 Q1 2026 earnings call. CEO Jim Fish framed WM’s advantage as consistency across changing operating conditions. His comments placed the company’s core collection network, sustainability investments, and healthcare integration at the center of the strategy.
“What continues to set us apart is our ability to consistently achieve strong performance regardless of external factors.” - Jim Fish, CEO, Q1 2026 earnings call
Fish also said WM expected to close tuck-in acquisitions during 2026 and reach an inflection in Healthcare Solutions revenue growth in the second half of the year. The operating record behind that statement included nearly 12% Healthcare Solutions EBITDA growth, despite volume losses from the prior year.
CFO David Reed focused on cash generation, leverage, and tax credits. He said production tax credits tied to Renewable Natural Gas projects would provide approximately $30M to $35M annually from 2026 through 2029. Those credits supported the revised 2026 tax-rate outlook.
“As a result of receiving 2025 and 2026 production tax credits, we now expect a full year effective tax rate of approximately 23% in 2026.” - David Reed, CFO, Q1 2026 earnings call
Reed’s comments matter because the tax benefit joins operating execution as a second source of earnings support. The Q1 call also showed shareholder returns moving higher as free cash flow improved. WM resumed share repurchases after generating $920M of free cash flow and returned $730M through dividends and buybacks.
Bottom Line
WM’s $2.02 EPS beat shows strong earnings execution, but $6.68B of revenue below the $6.71B estimate keeps the report balanced. The Buy consensus, recent target increases, improving cash flow, and disciplined cost structure support the long-term case, while the modest 0.63% gain reflects a market response that matched the mixed headline.
+Did Waste Management (WM) beat earnings in the latest quarter?
Yes. Waste Management reported Q2 2026 EPS of $2.02, above the $1.98 estimate. Revenue was $6.68 billion, slightly below the $6.71 billion consensus.
+Why did WM stock rise after earnings even though revenue missed?
Investors appeared to focus on the EPS beat and WM’s continued profit discipline, which outweighed the small revenue miss. The stock closed at $239.41, up 0.63%, on below-average trading volume.
+How did Waste Management's latest EPS compare with prior quarters?
WM’s $2.02 EPS was higher than each of the four prior reported quarters listed in the article, including $1.81, $1.93, $1.98, and $1.92. That shows the company is still improving earnings performance quarter over quarter.
+What is Wall Street's view on Waste Management (WM) after the earnings report?
Analyst sentiment remained positive, with a Buy consensus supported by 20 Buy ratings and 15 Holds. Recent target increases from Barclays and Citi also suggest analysts still see upside from the current share price.
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