AI Takeaway
Republic Services (RSG) delivered solid Q1 2026 results with revenue up 2.3% YoY to $4.70B, net income rising 6.1% to $525M, and operating cash flow surging 19.7% to $1.23B, reflecting steady pricing power and disciplined cost management in the waste services sector.
Revenue
$4.7B
++2.31% YoY
EPS (Basic)
$1.70
++7.59% YoY
Operating Income
$830M
++3.23% YoY
Filed · Source: SEC EDGAR 10-Q filing
Revenue grew 2.3% YoY to $4.70B in Q1 2026 from $4.59B in Q1 2025, consistent with RSG's strategy of leveraging pricing power in the essential waste management services industry to offset modest volume headwinds.
Source: Source: 10-Q Financial Data, Income Statement
Operating margin improved slightly to 17.66% from 17.50% YoY, with operating income rising 3.2% to $830M, as SG&A expenses declined 0.5% to $425M, demonstrating effective overhead cost control even as cost of revenue grew 2.2%.
Source: Source: 10-Q Financial Data, Income Statement & Key Ratios
Operating cash flow surged 19.7% YoY to $1.23B from $1.03B, significantly outpacing net income growth of 6.1%, reflecting strong cash conversion and higher D&A of $461M (up 6.2% YoY) as a non-cash add-back.
Source: Source: 10-Q Financial Data, Cash Flow Statement
2 more insights available
Upgrade to unlockRSG's current ratio stands at 0.67, meaning current liabilities of $3.74B significantly exceed current assets of $2.51B. While common for large waste management companies with predictable cash flows, this structural liquidity gap could become a concern if operating cash flows were to deteriorate unexpectedly.
Source: Source: 10-Q Financial Data, Balance Sheet & Key Ratios
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.70 versus the $1.65 analyst consensus — a +2.8% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $4.7B | $4.59B | +2.31% |
Cost of Revenue | $2.37B | $2.31B | +2.25% |
Operating Income | $830M | $804M | +3.23% |
Net Income | $525.26M | $495M | +6.11% |
EPS (Basic) | $1.70 | $1.58 | +7.59% |
EPS (Diluted) | $1.70 | $1.58 | +7.59% |
SG&A Expense | $425M | $427M | -0.47% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $34.6B | $33.1B | +4.52% |
Current Assets | $2.51B | $2.32B | +8.14% |
Current Liabilities | $3.74B | $3.49B | +7.13% |
Stockholders' Equity | $11.98B | $11.66B | +2.72% |
Cash & Equivalents | $118M | $83M | +42.17% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.23B | $1.02B | +19.71% |
Investing Cash Flow | $-910M | $-1.29B | +29.35% |
Financing Cash Flow | $-238M | $284M | -183.80% |
Share Buybacks | $292M | $55M | +430.91% |
D&A | $461M | $434M | +6.22% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 17.7% | 17.5% | +0.16% |
Net Margin | 11.2% | — | — |
ROE | 4.4% | — | — |
ROA | 1.5% | — | — |
Current Ratio | $0.671 | — | — |
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Republic Services reported Q1 2026 revenue of $4.70B (up 2.3% YoY) and net income of $525M (up 6.1% YoY), with EPS of $1.70 versus $1.58 a year ago. Operating cash flow was a standout at $1.23B, up nearly 20% YoY, reflecting strong cash conversion across the business.
The key takeaways from RSG's Q1 2026 report are steady revenue growth driven by pricing power, modest operating margin expansion to 17.66%, and a significant surge in share buybacks to $292M (up 431% YoY). Operating cash flow of $1.23B was particularly strong, well ahead of the prior year's $1.03B.
Yes, RSG's EPS grew 7.6% YoY to $1.70 in Q1 2026 from $1.58 in Q1 2025, with the growth rate exceeding net income growth of 6.1% due in part to share count reduction from accelerated buybacks of $292M during the quarter.
Based on the financial data, key risks include a current ratio of just 0.67 indicating short-term liabilities exceed current assets, high capital intensity with $910M in investing outflows and $461M in quarterly D&A, and cost of revenue growing nearly in line with revenue leaving limited room for gross margin expansion.
RSG's financial health appears solid overall: operating cash flow of $1.23B comfortably funds capital needs, total assets grew to $34.60B, and stockholders' equity stands at $11.98B. However, the current ratio of 0.67 and implied leverage of approximately $22.6B in total liabilities are factors investors should monitor.