Waste Management (WM) opened 2026 with Q1 revenue of US$6.2b and basic EPS of US$1.79, setting the tone for how the year starts against its recent track record. The company has seen quarterly revenue move from US$6.0b in Q1 2025 to US$6.2b in Q1 2026, while basic EPS shifted from US$1.58 to US$1.79 over the same period, giving investors a clear view of how the top and bottom lines are tracking as net profit margins ease slightly.

See our full analysis for Waste Management.

With the latest earnings on the table, the next step is to see how these numbers line up against the most common narratives about Waste Management’s growth, resilience, and profitability.

Margins Ease Back To 11%

• On a trailing basis, net profit margin sits at 11%, compared with 11.7% a year earlier, while Q1 2026 net income was US$723 million on US$6.2b of revenue.
• Analysts' consensus view expects margin improvement over time, yet the current 11% margin contrasts with that idea that profit margins could rise to 13.8%, which:
  • Lines up with the long term earnings growth rate of 10.3% per year over five years, but the most recent year shows 4.4% growth, so the higher margin view leans on future execution rather than the latest 12 month trend.
  • Also sits against the recent Q1 pattern, where net income of US$723 million on US$6.2b of revenue leaves less room for error if costs or volumes move the wrong way.

Multi Year EPS Growth Versus Recent 4.4%

• Over the last five years, earnings have grown 10.3% per year, while trailing year earnings growth is 4.4%, and the latest trailing 12 month EPS is US$6.93.
• Consensus narrative highlights technology, automation, and healthcare integration as growth drivers, and the current numbers give a mixed read on that bullish angle:
  • The trailing 12 month revenue of US$25.4b and net income of US$2.8b are consistent with a larger business than in 2024, which fits the idea that acquisitions and new services are feeding into earnings.
  • The slower 4.4% trailing year earnings growth, compared with the 10.3% multi year pace, shows that the expected benefits from automation and healthcare synergies are not yet showing up as faster profit growth over the most recent year.

On top of these growth trends, it is worth seeing how bullish investors frame the long term opportunity around technology, recycling, and healthcare earnings through the 🐂 Waste Management Bull Case.

Valuation Tight To DCF And Targets

• Shares trade at US$230.31, only about 0.8% below the DCF fair value of roughly US$232.10, and the P/E of 33.2x sits above the US Commercial Services average of 22.4x but below the peer average of 35.6x.
• Consensus narrative ties expected growth to valuation, and the current pricing leaves limited room if those bullish assumptions fall short:
  • Analysts are looking for earnings growth of about 11.78% per year, and have a price target of US$254.33, so the gap between the current price and that target assumes those growth expectations hold.
  • At the same time, a 1.64% dividend yield and the history of multi year earnings growth help explain why investors appear willing to accept a P/E higher than the broader industry even as net margin has eased from 11.7% to 11%.

For a more cautious read on these same numbers, including how margin pressure and higher P/E could weigh on returns if growth underwhelms, check out the 🐻 Waste Management 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 Management on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

The mix of risks and rewards around Waste Management may not be clear to every investor at first glance, so it is worth reviewing the underlying figures yourself before forming a firm opinion. If you want a concise rundown of both sides of the story, start with these 4 key rewards and 2 important warning signs

See What Else Is Out There

Waste Management faces a combination of slower recent earnings growth, easing net margins at 11%, and a P/E that already sits above the broader industry.

If that mix feels tight for your comfort, compare it with companies in the 71 resilient stocks with low risk scores to quickly spot businesses where risk scores look more comfortable and controlled.

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.