Waste Management stock holds 2026 outlook as healthcare margins improve

Waste Management reported third-quarter results for the period ended September 30, 2026, on October 27. In its earnings release, the company said revenue increased 6.3 percent year over year to 6.846 billion US dollars. Adjusted earnings per diluted share rose to 2.15 US dollars from 1.98 US dollars in the prior-year quarter.

Waste Management stock traded at 208.25 euros on Lang & Schwarz at 12:42 CET on Monday, November 2, 2026. Investors can follow the real-time quote of Waste Management stock.

Pricing offsets volume pressure

The quarter showed a mixed operating picture. Total company growth benefited from core price of 5.8 percent, a 3.4 percent yield contribution in Collection and Disposal, higher energy surcharges and increased volumes in recycling and renewable energy. 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 faced commercial weakness linked to earlier national-account broker losses.

Adjusted operating EBITDA increased 5.8 percent to 2.121 billion US dollars, while the adjusted margin was 31.0 percent, down from 31.1 percent a year earlier. WM said 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 was a brighter spot. Revenue rose 3.7 percent, and operating income improved by 41 million US dollars from the prior-year quarter. WM also said the segment's operating EBITDA increased by more than 30 percent, supported by cost management, synergy capture and pricing growth.

The healthcare progress is strategically important because it gives WM another source of margin improvement while core waste volumes remain uneven. At the same time, the company continues to invest in recycling and renewable energy infrastructure. During the quarter, it began operating its eighteenth new renewable natural gas facility since 2022.

Cash flow supports shareholder returns

Cash generation remained a central part of the investment case. Net cash provided by operations reached 4.867 billion US dollars 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 US dollars.

WM returned 957 million US dollars to shareholders in the third quarter through 580 million US dollars of share repurchases and 377 million US dollars of dividends. The company repurchased 1.583 billion US dollars of stock during the first nine months and continued to expect total 2026 repurchases of 2 billion US dollars.

Full-year outlook remains intact

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

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