What drove the revenue increase in the first quarter of 2026?

Revenue increased by 3.5% to $6.227 billion primarily due to higher yield in the Collection and Disposal business, incremental volumes from the Renewable Energy segment, and contributions from recent acquisitions. These factors were partially offset by lower collection volumes and reduced prices for recycled commodities.

How did the company's profitability change compared to the prior year?

Profitability improved significantly. Net income attributable to Waste Management, Inc. increased by 13.5% to $723 million, resulting in diluted earnings per share of $1.79, up from $1.58 in the prior year. This improvement was driven by strong revenue growth and effective cost management, leading to a higher operating income of $1.113 billion.

What is the company's cash flow situation, and how is it being utilized?

Waste Management demonstrated robust cash flow generation. Net cash provided by operating activities increased by 24.3% to $1.501 billion. Free cash flow more than doubled to $920 million. The company utilized this strong cash flow to repurchase $344 million of common stock and pay $385 million in cash dividends, indicating a commitment to returning capital to shareholders.

Are there any notable impacts from renewable energy initiatives?

Yes, the Renewable Energy segment contributed positively, with incremental volumes driving revenue growth. The company also benefited from federal tax credits, such as Section 45Z clean fuel production tax credits, which reduced income tax expense and are expected to continue through 2029. These initiatives are a key part of the company's sustainability strategy and growth.

WM 10-Q Quarterly Report Q1 FY2026 — Revenue, Net Income, EPS

Summary

Waste Management, Inc. (WM) reported solid financial results for the first quarter ended March 31, 2026. Revenue increased by 3.5% year-over-year to $6.227 billion, driven by higher yield in Collection and Disposal, incremental volumes from the Renewable Energy segment, and recent acquisitions. This top-line growth translated into a significant increase in operating income, up 9.9% to $1.113 billion, and net income attributable to Waste Management, Inc. rose by 13.5% to $723 million, or $1.79 per diluted share. The company also demonstrated strong cash flow generation, with net cash provided by operating activities increasing by 24.3% to $1.501 billion, and free cash flow more than doubling to $920 million.

Financial Highlights

50 data points

Beta

Revenue

$6.23B

0.4% Gross Margin

Net Income

$723.00M

0.1% Net Margin

EPS (Diluted)

$1.79

Total Assets

$45.70B

Cash & Equivalents

$158.00M

Free Cash Flow

$1.50B

Financial Statements

Beta

Revenue	$6.23B
Cost of Revenue	$3.69B
Gross Profit	$2.53B
SG&A Expenses	$707.00M
Operating Expenses	$5.11B
Operating Income	$1.11B
Net Income	$723.00M
EPS (Basic)	$1.79
EPS (Diluted)	$1.79
Shares Outstanding (Basic)	403.20M
Shares Outstanding (Diluted)	404.40M

Key Highlights

1Revenue increased 3.5% to $6.227 billion, driven by pricing power in core services and contributions from renewable energy initiatives.
2Net income attributable to Waste Management, Inc. grew 13.5% to $723 million ($1.79 per diluted share), indicating improved profitability.
3Operating income rose 9.9% to $1.113 billion, reflecting effective cost management and revenue growth.
4Net cash provided by operating activities increased significantly by 24.3% to $1.501 billion, showcasing strong operational cash generation.
5Free cash flow more than doubled to $920 million, underscoring the company's robust ability to generate cash after capital expenditures.
6The company continued its capital allocation strategy by repurchasing $344 million of common stock and increasing dividends.
7The effective income tax rate decreased slightly to 18.9%, aided by federal tax credits related to renewable energy projects.

WASTE MANAGEMENT INC Quarterly Report for Q1 Ended Mar 31, 2026

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions