Key takeaways
- Barclays maintains an Overweight rating on Waste Management and raises its price target to $283.00.
- Waste Management’s third-quarter 2026 revenue of $6.85 billion surpassed estimates, supported by strong core pricing and 20% free cash flow growth.
- CEO Jim Fish announced his retirement, with President John Morris set to succeed him in early January.
Waste Management (NYSE: WM) is a leading environmental services company that collects, recycles, and disposes of waste. Barclays maintains its Overweight rating on the stock and raises its price target to $283.00 from $277.00. The new target is about 25.7% above the $225.15 share price when the update was posted.
Waste Management’s third-quarter 2026 revenue rises 6.3% to $6.85 billion, above the $6.80 billion estimate. Core pricing increases 5.8%, while energy surcharges and growth in sustainability businesses also support revenue. Collection and Disposal volume falls 0.4%, meaning the business handles slightly less waste in that segment.
Operating EBITDA, a key measure of earnings before interest, taxes, depreciation and amortization, rises 5.8%. Its margin holds at 31% despite fuel-cost pressure, while selling, general and administrative expenses fall to 9.3% of revenue. Free cash flow, the cash left after spending on operations and equipment, grows 20%.
Adjusted earnings rise 8.6% to $2.15 per share but miss the $2.18 estimate by 1.4%, as highlighted by Zacks. Waste Management reaffirms its 2026 outlook and expects revenue and free cash flow to reach the high end of their guidance ranges.
The update comes as Waste Management prepares for a leadership change. CEO Jim Fish plans to retire in early January after 10 years in the role, with President John Morris set to succeed him. Fish says he plans to remain a long-term shareholder and expresses confidence in Morris and the leadership team.
