Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
WM delivered a strong Q1 2026 with revenue of $6.23B (+3.5% YoY), operating income surging 9.9% to $1.11B, and net income climbing 13.5% to $723M, driven by margin expansion and robust operating cash flow of $1.50B.
Revenue
$6.23B
+3.47% YoY
EPS (Diluted)
$1.79
+13.29% YoY
Operating Income
$1.11B
+9.87% YoY
Source: SEC XBRL
Waste Management (WM) reported Q1 FY2026 revenue of $6.23B, up 3.5% year over year. Operating margin was 17.9%, up 1.1 points from 16.8% a year earlier. Operating cash flow was $1.5B, up 24.3% year over year. WM's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.02 | 2.04 | Miss -1.0% |
| Mar 2026This filing | 1.81 | 1.79 | Beat +0.9% |
| Dec 2025 | 1.93 | 2.00 | Miss -3.5% |
| Sep 2025 | 1.98 | 2.08 | Miss -4.8% |
Adjusted (non-GAAP) EPS of $1.81 versus the $1.79 analyst consensus — a +0.9% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.79.
Compiled by AI from this SEC filing
WM grew total revenue by 3.5% YoY to $6.23B in Q1 2026, up from $6.02B in Q1 2025, reflecting steady demand for waste management and environmental services despite a modest macroeconomic backdrop.
Source: 10-Q Income Statement
Operating margin improved approximately 100 basis points YoY to 17.87% from 16.83%, as operating income grew 9.9% to $1.11B while cost of revenue grew at a slower pace of 2.3%, indicating improved operational efficiency and pricing discipline.
Source: 10-Q Income Statement & Key Ratios
Operating cash flow surged 24.3% YoY to $1.50B, significantly outpacing net income growth of 13.5%, supported by D&A of $735M (+6.4% YoY), underscoring WM's asset-heavy but cash-generative business model.
Source: 10-Q Cash Flow Statement
WM returned $344M to shareholders via share buybacks in Q1 2026 while investing $731M in capital activities (net), reflecting a balanced approach to growth investment and shareholder returns. Financing cash outflows increased 53.2% YoY to -$821M.
Source: 10-Q Cash Flow Statement
Stockholders' equity rose 15.8% YoY to $10.02B, while total liabilities declined slightly by 0.4% to $35.68B, suggesting a gradual deleveraging trend and improving net asset position.
Source: 10-Q Balance Sheet
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
WM carries a debt-to-equity ratio of 3.56x, reflecting significant financial leverage inherent to its capital-intensive waste infrastructure business. While manageable given strong cash flows, elevated leverage increases vulnerability to interest rate changes and limits financial flexibility in a downturn.
Source: 10-Q Balance Sheet & Key Ratios
WM's current ratio stands at 0.93x, meaning current liabilities of $5.15B exceed current assets of $4.81B. Combined with a 26.9% YoY decline in cash to just $158M, near-term liquidity relies heavily on operating cash generation and credit facility access.
Source: 10-Q Balance Sheet & Key Ratios
Depreciation and amortization increased 6.4% YoY to $735M, reflecting WM's growing asset base and ongoing infrastructure investments. Sustained high capex requirements could pressure free cash flow if revenue growth moderates or financing costs rise.
Source: 10-Q Cash Flow Statement
Cost of revenue grew to $3.69B (+2.3% YoY) and SG&A rose to $707M (+2.9% YoY), indicating persistent cost pressures from labor, fuel, and operational expenses. While margins expanded in Q1 2026, any acceleration in input cost inflation could compress profitability.
Source: 10-Q Income Statement
WM's total assets grew to $45.70B (+2.7% YoY), partly reflecting ongoing acquisition activity in the environmental services sector. Integration of acquired businesses introduces execution risk, potential goodwill impairment exposure, and operational complexity.
Source: 10-Q Balance Sheet
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 6.23 $B | 6.02 $B | +3.47% |
Cost of Revenue $B | 3.69 $B | 3.61 $B | +2.27% |
Operating Income $B | 1.11 $B | 1.01 $B | +9.87% |
Net Income $M | 723.00 $M | 637.00 $M | +13.50% |
EPS (Basic) $ | 1.79 $ | 1.58 $ | +13.29% |
EPS (Diluted) $ | 1.79 $ | 1.58 $ | +13.29% |
SG&A Expense $M | 707.00 $M | 687.00 $M | +2.91% |
Answers draw on this SEC filing and the data on this page
In 2026-Q2, WM generated $6,684M in revenue (up 4.0% YoY) and $785M in net income ($1.95 diluted EPS), propelled by Collection and Disposal pricing yield and Stericycle synergy realization despite recycled commodity price declines.
WM delivered strong FY2025 revenue growth of 14.2% to $25.2B, driven largely by its acquisition of Stericycle, though net income dipped 1.4% to $2.71B as higher SG&A and D&A costs weighed on profitability.
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