Waste Management stock gains as healthcare margins improve outlook
Published on 11/03/2026 at 14:16 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSEarnings and outlook take shape
- Third-quarter revenue growth was supported by pricing, energy surcharges, recycling and renewable-energy volumes.
- Healthcare Solutions improved profitability through pricing, cost control and integration synergies.
- Management expects full-year revenue and free cash flow at the upper end of its guidance ranges.
Waste Management reported stronger third-quarter operating performance on October 27, 2026, while keeping its full-year financial outlook unchanged. The Houston-based environmental services group said Healthcare Solutions improved profitability as pricing, cost control and integration synergies offset continued volume pressure.
WM's earnings release showed third-quarter revenue of USD 6.846 billion, up 6.3 percent from USD 6.443 billion a year earlier. Adjusted operating EBITDA rose 5.8 percent to USD 2.121 billion, while adjusted operating EBITDA margin was 31.0 percent, down 10 basis points from the prior-year quarter.
Healthcare adds operating leverage
Healthcare Solutions revenue increased 3.7 percent to USD 651 million. Adjusted operating EBITDA reached USD 146 million, compared with USD 127 million in the prior-year period, and the adjusted margin widened to 22.4 percent from 20.2 percent. WM attributed the improvement to pricing, cost management and continued integration benefits following the Stericycle acquisition.
The company said Healthcare Solutions had reached two targets earlier than expected: core price of 5.5 percent and adjusted selling, general and administrative expense of 15.2 percent of revenue. The wider business still faces softer collection and healthcare volumes. Collection and Disposal volume declined 0.4 percent in the quarter, or 0.5 percent on a workday-adjusted basis, while higher fuel and risk-management costs weighed on margins.
Cash flow supports outlook
Net cash provided by operating activities rose 12.0 percent to USD 4.87 billion during the first nine months. Free cash flow increased to USD 3.009 billion from USD 2.114 billion in the prior-year period. WM returned USD 957 million to shareholders during the quarter through USD 580 million of repurchases and USD 377 million of dividends.
Management expects 2026 revenue toward the high end of its USD 26.275 billion to USD 26.475 billion range. Adjusted operating EBITDA is expected within the USD 8.15 billion to USD 8.25 billion range, while free cash flow is also expected toward the high end of the USD 3.75 billion to USD 3.85 billion range. The company continues to expect USD 2 billion of share repurchases in 2026.
Stock trades above prior Xetra close
Waste Management stock traded at 210.90 euros on Lang & Schwarz at 2:08 p.m. CET on Tuesday, November 3, 2026, 0.57 percent above the Xetra close of Monday, November 2. Investors can follow the real-time quote of Waste Management stock.
The combination of pricing power, cost discipline and stronger cash conversion supports the investment case, but fuel costs, softer volumes and the pace of Healthcare Solutions integration remain important swing factors. Management has indicated that the healthcare synergy target remains scheduled for around the middle of 2027.
Waste Management stock at a glance
- Company: Waste Management, Inc.
- ISIN: US94106L1098
- NYSE ticker: WM
- Lang & Schwarz quote: 210.90 euros on November 3, 2026, at 2:08 p.m. CET
- Comparison: 0.57 percent above the Xetra close of November 2, 2026
- Third-quarter revenue: USD 6.846 billion, up 6.3 percent year over year
- Adjusted operating EBITDA: USD 2.121 billion, with a 31.0 percent margin
Broader risk appetite can be followed in current market reports.
More earnings updates and company developments are available in more news and analyses on Waste Management stock.
