WM holds 2026 outlook as Q3 revenue climbs 6.3% to $6.846 billion

Waste Management posted third-quarter revenue of $6.846 billion for the period ended September 30, 2026, a 6.3 percent increase year over year, and affirmed full-year guidance with revenue and free cash flow expected at the high end of existing ranges. The Houston-based hauler reported the results on October 27, and its stock traded at 208.25 euros on Lang & Schwarz at 12:42 CET on Monday, November 2, 2026.

Adjusted earnings per diluted share rose to $2.15 from $1.98 in the prior-year quarter. The quarter rewarded a pricing-led model: core price contributed 5.8 percent, and Collection and Disposal added a 3.4 percent yield contribution. Higher energy surcharges and increased volumes in recycling and renewable energy lifted total company growth.

What held the margin back?

The operating picture split between price and volume. Collection and Disposal volume declined 0.4 percent, or 0.5 percent after workday adjustment, as WM continued to shed lower-margin residential business and absorbed commercial weakness tied to earlier national-account broker losses.

Adjusted operating EBITDA still increased 5.8 percent to $2.121 billion, though the adjusted margin slipped to 31.0 percent from 31.1 percent a year earlier. Higher fuel and risk-management costs offset the benefit from pricing and operating improvements. Adjusted SG&A declined to 9.3 percent of revenue, reflecting cost discipline and continued integration benefits.

Healthcare becomes a profit driver

Healthcare Solutions delivered the quarter's clearest margin story. Segment revenue rose 3.7 percent, and operating income improved by $41 million from the prior-year quarter. The company said the segment's operating EBITDA increased by more than 30 percent, supported by cost management, synergy capture and pricing growth.

That progress matters strategically. It gives WM a second source of margin improvement while core waste volumes remain uneven, and it validates the integration work following the segment's formation. The company also keeps building circular-economy infrastructure: during the quarter it began operating its eighteenth new renewable natural gas facility since 2022.

Cash flow supports shareholder returns

Cash generation anchored the investment case. Net cash provided by operations reached $4.867 billion through the first nine months, up 12 percent from the prior-year period. Free cash flow rose more than 42 percent to $3.009 billion.

WM returned $957 million to shareholders in the third quarter:

• $580 million in share repurchases
• $377 million in dividends
• $1.583 billion repurchased during the first nine months
• Full-year 2026 repurchases still expected at $2 billion

What does the full-year outlook change?

Management affirmed its 2026 guidance in full. Revenue is expected at the high end of the $26.275 billion to $26.475 billion range, adjusted operating EBITDA is projected between $8.15 billion and $8.25 billion, and free cash flow is expected at the high end of the $3.75 billion to $3.85 billion range.

The outlook leaves pricing, cost control and healthcare integration as the main operating levers for the remainder of the year. The principal risks remain weaker waste volumes, fuel costs, regulatory requirements and the execution of integration and sustainability investments.

For the waste sector, the numbers confirm that price discipline and asset diversification, not tonnage growth, are carrying earnings. The next milestone arrives with fourth-quarter results, which will show whether Collection and Disposal volumes stabilize and whether the high-end guidance converts into reported results.