Waste Connections (WCN) just posted Q2 2026 revenue of US$2.6 billion with basic EPS of US$1.17, backed by trailing twelve month revenue of US$9.8 billion and EPS of US$4.15. The company has seen revenue move from US$2.4 billion in Q2 2025 to US$2.6 billion in Q2 2026, while quarterly EPS shifted from US$1.12 to US$1.17 over the same period, against a backdrop of 64.7% earnings growth and a net profit margin of 10.9% over the last year. For investors, this combination of higher earnings, a wider margin and moderate revenue growth sets up a results season where profitability efficiency is firmly in focus.

See our full analysis for Waste Connections.

With the latest numbers on the table, the next step is to see how these results line up with the prevailing narratives on Waste Connections, and where the data may challenge what the market has been assuming.

Margins Stand Out With 10.9% Profit Level

• On a trailing basis, Waste Connections converted US$9.8 billion of revenue into US$1.1 billion of net income, which works out to a 10.9% net profit margin compared with 7% a year earlier.
• Consensus narrative supporters point to pricing and cost control as margin drivers, and the current 10.9% margin lines up with that, but
  • the modest 5.6% revenue growth rate versus a 12.7% US market benchmark shows that margin gains are doing more of the work than top line growth, and
  • earnings growth of 64.7% looks very strong next to that 5.6% revenue figure, so readers may want to judge how repeatable this mix of higher margins and slower revenue growth really is.

64.7% Earnings Growth Fuels Bullish Case

• Over the last 12 months, earnings grew 64.7% while trailing EPS reached US$4.15 on US$9.8 billion of revenue, a much faster pace than the 5.6% revenue growth rate.
• Bullish investors who expect revenue to grow around 7% a year and margins to rise toward the mid teens see this earnings profile as a key support, yet
  • the current share price of US$169.61 sits below both the cited DCF fair value of about US$253.32 and an analyst target of US$204.50, which fits their view of upside, and
  • forecast earnings growth of about 13.6% a year is lower than the 17.2% figure cited for the broader US market, so the bullish stance leans heavily on margin expansion and project execution rather than faster revenue growth alone.

Bulls are leaning on projects like renewable natural gas plants and AI supported pricing to keep margins moving, so if you want to see how that story is laid out and where expectations are highest, check out the latest bullish narrative for Waste Connections 🐂 Waste Connections Bull Case

Rich 40.3x P/E Keeps Risks On The Table

• The stock trades on a trailing P/E of 40.3x, compared with 30.8x for peers and 19.6x for the broader commercial services industry, while the balance sheet is flagged for high debt.
• Cautious investors highlight that such a premium multiple leaves little room for disappointment even with stronger recent earnings, because
  • revenue growth of 5.6% a year and forecast earnings growth around 13.6% are both below the US market figures cited, which can make a 40.3x P/E look demanding if growth does not keep pace with expectations, and
  • the company’s higher leverage is tagged as a risk, so any squeeze on margins or delays in projects like landfill remediation or renewable gas facilities could make that premium valuation feel harder to justify.

Before you decide how comfortable you are with that 40.3x P/E and the debt load, it can help to read how skeptics frame the risks in their full bearish narrative for Waste Connections 🐻 Waste Connections Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Waste Connections on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If the mix of optimism and concern around Waste Connections leaves you undecided, that is the point. This is a stock where both potential and risk are on display, so take a closer look at the full breakdown of 4 key rewards and 1 important warning sign

See What Else Is Out There

For Waste Connections, slower 5.6% revenue growth, a rich 40.3x P/E and higher leverage mean investors are relying heavily on margins staying strong.

If that combination makes you uneasy, you can quickly compare this profile with companies that pair growth stories with healthier balance sheets by checking the solid balance sheet and fundamentals stocks screener (49 results) today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.