Waste Management’s second quarter results showed a steady performance, with revenue growth driven by disciplined pricing and operational efficiencies, even as volumes remained softer than anticipated. Management credited technology investments and automation initiatives for helping to offset inflationary pressures and deliver consistent earnings growth. CEO Jim Fish highlighted, “Our collection and disposal business led underlying margin expansion through continued price discipline, cost optimization, and business mix improvements.” The company also benefited from strong execution in its Healthcare Solutions and renewable energy segments, which contributed to margin gains.
Is now the time to buy WM? Find out in our full research report (it’s free for active Edge members).
Waste Management (WM) Q2 CY2026 Highlights:
- Revenue: $6.68 billion vs analyst estimates of $6.71 billion (4% year-on-year growth, in line)
- Adjusted EPS: $2.02 vs analyst estimates of $1.98 (2.1% beat)
- Adjusted EBITDA: $2.07 billion vs analyst estimates of $2.03 billion (30.9% margin, 1.6% beat)
- EBITDA guidance for the full year is $8.2 billion at the midpoint, in line with analyst expectations
- Operating Margin: 18.7%, in line with the same quarter last year
- Market Capitalization: $90.51 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Waste Management’s Q2 Earnings Call
- Toni Kaplan (Morgan Stanley) asked about Healthcare Solutions' volume and growth outlook. CEO Jim Fish explained integration is complete, cross-selling is accelerating, and volume gains are expected in the second half, with SG&A improvements continuing.
- Noah Kaye (Oppenheimer) questioned the revenue guidance revision and drivers behind it. Fish and CFO David Reed clarified that softness was mostly volume-driven, offset by energy surcharges, with Healthcare Solutions and pricing execution mitigating earnings impact.
- Kevin Chiang (CIBC) inquired about whether volume softness was tied to macroeconomic sentiment. Fish responded that industrial and special waste volumes remain healthy and macro conditions are not showing major weakness, with commercial account churn being the main factor.
- Adam Bubes (Goldman Sachs) pressed for details on RNG production ramp and margin outlook. EVP Tara Hemmer highlighted strong operational performance and that new RNG plant delays are temporary, with long-term volume and uptime targets intact.
- Konark Gupta (Scotia Capital) sought clarification on second-half margin expansion and wildfire impact. Reed and Fish emphasized easy comps, moderating energy surcharge headwinds, and improving Healthcare Solutions margins as contributors to continued expansion.
Catalysts in Upcoming Quarters
In coming quarters, the StockStory team will be monitoring (1) the pace of Healthcare Solutions revenue and synergy capture as integration matures, (2) the operational ramp and throughput of new recycling and RNG facilities, and (3) volume stabilization in core collection and disposal, particularly commercial and residential lines. Execution on tuck-in acquisitions and technology-driven cost savings will also be closely watched as potential drivers of future performance.
Waste Management currently trades at $226.64, down from $239.41 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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