AI Takeaway
Williams Companies (WMB) delivered strong Q1 FY2026 results with net income surging 25.2% YoY to $865M and operating margin expanding 7.7 percentage points to 43.6%, despite a slight 0.6% dip in revenue to $3.03B.
Revenue
$3.03B
-0.59% YoY
EPS (Basic)
$0.71
++24.56% YoY
Operating Income
$1.32B
++20.75% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Operating income jumped 20.7% YoY to $1.321B even as revenue edged down 0.6% to $3.03B, indicating significant cost discipline and margin expansion driving profitability improvements in Q1 FY2026.
Source: Source: 10-Q Income Statement Data
Operating cash flow grew 11.9% YoY to $1.603B, reflecting the company's robust cash-generating capability from its midstream natural gas infrastructure assets, supporting ongoing capital investment and distributions.
Source: Source: 10-Q Cash Flow Statement Data
Current liabilities declined sharply by 36.1% YoY to $4.006B while current assets rose 31.0% to $3.320B, reflecting improved near-term liquidity management even as total assets grew 8.5% to $59.57B.
Source: Source: 10-Q Balance Sheet Data
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Upgrade to unlockWMB's current ratio stands at 0.83, meaning current liabilities exceed current assets. While this improved significantly from the prior year (when current liabilities were $6.27B), it still signals potential short-term liquidity constraints that could require refinancing or credit facility draws.
Source: Source: 10-Q Balance Sheet Data
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.60 versus the $0.63 analyst consensus — a -4.6% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $3.03B | $3.05B | -0.59% |
Operating Income | $1.32B | $1.09B | +20.75% |
Net Income | $865M | $691M | +25.18% |
EPS (Basic) | $0.71 | $0.57 | +24.56% |
EPS (Diluted) | $0.70 | $0.56 | +25.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $59.57B | $54.92B | +8.46% |
Current Assets | $3.32B | $2.54B | +30.97% |
Current Liabilities | $4.01B | $6.27B | -36.07% |
Stockholders' Equity | $12.99B | $12.49B | +4.04% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.6B | $1.43B | +11.86% |
Investing Cash Flow | $-884M | $-1.17B | +24.44% |
Financing Cash Flow | $168M | $-223M | +175.34% |
D&A | $584M | $585M | -0.17% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 43.6% | 35.9% | +7.70% |
Net Margin | 28.5% | — | — |
ROE | 6.7% | — | — |
ROA | 1.5% | — | — |
Current Ratio | $0.829 | — | — |
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Williams Companies (WMB) delivered strong Q1 FY2026 results with net income of $865M, up 25.2% YoY, and diluted EPS of $0.70, up 25.0% YoY. Operating income surged 20.7% to $1.321B even as revenue dipped slightly by 0.6% to $3.03B, reflecting significant margin expansion.
WMB reported revenue of $3.03B in Q1 FY2026, a modest decline of 0.6% compared to $3.048B in Q1 FY2025. Despite the slight revenue dip, the company grew operating and net income substantially through improved cost efficiency.
WMB's financial health appears solid with $1.603B in operating cash flow and total assets of $59.57B, though its current ratio of 0.83 indicates current liabilities slightly exceed current assets. The company carries a large implied debt load relative to its $12.99B equity base, which is typical for capital-intensive midstream pipeline operators.
Key risks for WMB include sensitivity of revenues to natural gas throughput volumes and commodity prices, a high leverage ratio given the large asset base relative to equity, and near-term liquidity pressure reflected in a current ratio below 1.0. Ongoing capital expenditures of $884M in investing outflows also carry execution risk.
WMB's operating margin expanded significantly to 43.6% in Q1 FY2026, up from 35.9% in Q1 FY2025, a gain of approximately 7.7 percentage points. This improvement reflects strong cost discipline and operational leverage across WMB's natural gas midstream infrastructure network.