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WM's Earnings Surpass Estimates in Q1, Revenues Rise Y/Y
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Key Takeaways
WM's Q1 adjusted EPS rose y/y to $1.81 from $1.67; revenues grew 3.5% to $6.23B.
WM said pricing and cost optimization lifted adjusted EBITDA 5.9% and expanded the margin by 70 bps.
WM volumes fell 1.5% on harsh winter and lower-margin exits; operating cash flow jumped 24% to $1.5B.
Waste Management, Inc. (WM - Free Report) reported first-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues fell short.
The company posted adjusted earnings of $1.81 per share, which beat the Zacks Consensus Estimate of $1.75 by 3.4%. The bottom line improved from the year-ago quarter’s adjusted figure of $1.67.
Revenues of $6.23 billion missed the Zacks Consensus Estimate of $6.29 billion by 1.1%. However, the top line increased 3.5% year over year.
Waste Management, Inc. Price, Consensus and EPS Surprise
Waste Management delivered solid profitability in the quarter, backed by disciplined pricing, cost optimization and contributions from sustainability-driven growth initiatives.
Adjusted operating EBITDA rose 5.9% year over year, while the margin expanded 70 basis points, reflecting strong execution across the business.
The Collection and Disposal segment remained a key growth driver, benefiting from favorable price-to-cost spreads and operational efficiencies. Meanwhile, Recycling and Renewable Energy businesses gained from higher volumes and automation-led improvements.
Segmental Performance
Revenue growth was primarily driven by core pricing gains of 6.3% and solid yield in collection and disposal operations. However, overall volumes declined 1.5% due to harsh winter weather, strategic shedding of lower-margin residential business and difficult year-over-year comparisons related to prior wildfire cleanup activity.
The Healthcare Solutions business delivered strong EBITDA growth during the quarter, supported by effective cost management and synergy realization.
Financial Position
WM generated robust cash flows during the quarter. The operating cash flow totaled $1.5 billion, reflecting a 24% year-over-year increase. The free cash flow came in at $920 million, significantly higher than $475 million in the prior-year quarter.
The company also maintained a strong capital allocation strategy, returning approximately $729 million to shareholders through dividends and share repurchases during the quarter.
Outlook
Management expressed confidence in the company’s momentum and reaffirmed its 2026 outlook. Continued investments in recycling, renewable energy, healthcare solutions and automation are expected to support growth and margin expansion.
Conclusion
WM delivered a solid earnings beat in the first quarter of 2026, reflecting strong operational execution and margin expansion. While revenues slightly missed expectations, the company’s pricing strength, cost discipline and growing sustainability businesses position it well for the remainder of the year.
FDS’s earnings per share of $4.46 beat the consensus mark by 2.1% and increased 4.2% from the year-ago quarter. Revenues of $611 million beat the Zacks Consensus Estimate by a slight margin and rose 7.1% from the year-ago quarter.
EFX posted $1.86 in earnings per share, beating the Zacks Consensus Estimate by 10%. This marked a 21.6% jump from the first quarter of 2025. The company recorded $1.7 billion in its top line, surpassing the consensus estimate by 2.3%. Revenues increased 14.6% from the year-ago quarter.
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WM's Earnings Surpass Estimates in Q1, Revenues Rise Y/Y
Key Takeaways
Waste Management, Inc. (WM - Free Report) reported first-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues fell short.
The company posted adjusted earnings of $1.81 per share, which beat the Zacks Consensus Estimate of $1.75 by 3.4%. The bottom line improved from the year-ago quarter’s adjusted figure of $1.67.
Revenues of $6.23 billion missed the Zacks Consensus Estimate of $6.29 billion by 1.1%. However, the top line increased 3.5% year over year.
Waste Management, Inc. Price, Consensus and EPS Surprise
Waste Management, Inc. price-consensus-eps-surprise-chart | Waste Management, Inc. Quote
WM’s Q1 Highlights
Waste Management delivered solid profitability in the quarter, backed by disciplined pricing, cost optimization and contributions from sustainability-driven growth initiatives.
Adjusted operating EBITDA rose 5.9% year over year, while the margin expanded 70 basis points, reflecting strong execution across the business.
The Collection and Disposal segment remained a key growth driver, benefiting from favorable price-to-cost spreads and operational efficiencies. Meanwhile, Recycling and Renewable Energy businesses gained from higher volumes and automation-led improvements.
Segmental Performance
Revenue growth was primarily driven by core pricing gains of 6.3% and solid yield in collection and disposal operations. However, overall volumes declined 1.5% due to harsh winter weather, strategic shedding of lower-margin residential business and difficult year-over-year comparisons related to prior wildfire cleanup activity.
The Healthcare Solutions business delivered strong EBITDA growth during the quarter, supported by effective cost management and synergy realization.
Financial Position
WM generated robust cash flows during the quarter. The operating cash flow totaled $1.5 billion, reflecting a 24% year-over-year increase. The free cash flow came in at $920 million, significantly higher than $475 million in the prior-year quarter.
The company also maintained a strong capital allocation strategy, returning approximately $729 million to shareholders through dividends and share repurchases during the quarter.
Outlook
Management expressed confidence in the company’s momentum and reaffirmed its 2026 outlook. Continued investments in recycling, renewable energy, healthcare solutions and automation are expected to support growth and margin expansion.
Conclusion
WM delivered a solid earnings beat in the first quarter of 2026, reflecting strong operational execution and margin expansion. While revenues slightly missed expectations, the company’s pricing strength, cost discipline and growing sustainability businesses position it well for the remainder of the year.
WM carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
FactSet (FDS - Free Report) reported impressive results for second-quarter fiscal 2026.
FDS’s earnings per share of $4.46 beat the consensus mark by 2.1% and increased 4.2% from the year-ago quarter. Revenues of $611 million beat the Zacks Consensus Estimate by a slight margin and rose 7.1% from the year-ago quarter.
Equifax Inc. (EFX - Free Report) registered impressive first-quarter 2026 results.
EFX posted $1.86 in earnings per share, beating the Zacks Consensus Estimate by 10%. This marked a 21.6% jump from the first quarter of 2025. The company recorded $1.7 billion in its top line, surpassing the consensus estimate by 2.3%. Revenues increased 14.6% from the year-ago quarter.