Erste Group Bank Has Pessimistic View of WM FY2026 Earnings

Waste Management, Inc. (NYSE:WM) – Analysts at Erste Group Bank lowered their FY2026 EPS estimates for Waste Management in a note issued to investors on Monday, July 27th. Erste Group Bank analyst H. Engel now anticipates that the business services provider will post earnings per share of $8.15 for the year, down from their prior estimate of $8.16. The consensus estimate for Waste Management’s current full-year earnings is $8.16 per share.

Waste Management (NYSE:WM) last posted its quarterly earnings results on Tuesday, July 28th. The business services provider reported $2.02 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.98 by $0.04. Waste Management had a net margin of 10.99% and a return on equity of 31.90%. The firm had revenue of $6.68 billion for the quarter, compared to analysts’ expectations of $6.71 billion. During the same period in the prior year, the company posted $1.92 earnings per share. The firm’s quarterly revenue was up 4.0% on a year-over-year basis.

Several other equities analysts have also recently commented on the stock. JPMorgan Chase & Co. increased their price target on shares of Waste Management from $265.00 to $270.00 and gave the stock an “overweight” rating in a research report on Friday, April 10th. Barclays lifted their price target on shares of Waste Management from $266.00 to $270.00 and gave the company an “overweight” rating in a report on Thursday, April 30th. Wells Fargo & Company reduced their price target on Waste Management from $273.00 to $268.00 and set an “overweight” rating for the company in a research report on Thursday, April 30th. TD Cowen raised their price target on Waste Management from $270.00 to $275.00 and gave the company a “buy” rating in a report on Thursday, April 30th. Finally, Scotiabank upped their price objective on shares of Waste Management from $250.00 to $260.00 and gave the stock a “sector perform” rating in a report on Thursday, July 16th. Fourteen equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, Waste Management presently has a consensus rating of “Moderate Buy” and an average target price of $256.74.

Waste Management Price Performance

Shares of WM stock opened at $239.54 on Wednesday. The firm has a fifty day moving average of $224.83 and a two-hundred day moving average of $227.43. The firm has a market cap of $96.20 billion, a P/E ratio of 34.67, a P/E/G ratio of 2.89 and a beta of 0.44. Waste Management has a 1-year low of $194.11 and a 1-year high of $248.13. The company has a debt-to-equity ratio of 2.22, a current ratio of 0.93 and a quick ratio of 0.89.

Waste Management Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Friday, June 5th were given a $0.945 dividend. This represents a $3.78 annualized dividend and a yield of 1.6%. The ex-dividend date of this dividend was Friday, June 5th. Waste Management’s payout ratio is currently 54.70%.

Institutional Investors Weigh In On Waste Management

A number of large investors have recently bought and sold shares of WM. Vanguard Group Inc. lifted its position in shares of Waste Management by 1.4% in the fourth quarter. Vanguard Group Inc. now owns 38,990,067 shares of the business services provider’s stock worth $8,566,508,000 after buying an additional 553,605 shares during the last quarter. State Street Corp boosted its position in Waste Management by 1.6% during the fourth quarter. State Street Corp now owns 17,390,748 shares of the business services provider’s stock worth $3,820,921,000 after purchasing an additional 281,456 shares during the period. Geode Capital Management LLC grew its holdings in Waste Management by 1.3% during the fourth quarter. Geode Capital Management LLC now owns 8,993,006 shares of the business services provider’s stock valued at $1,972,371,000 after purchasing an additional 117,476 shares during the last quarter. Norges Bank bought a new position in shares of Waste Management in the fourth quarter valued at approximately $1,022,916,000. Finally, Northern Trust Corp boosted its holdings in shares of Waste Management by 0.3% during the 3rd quarter. Northern Trust Corp now owns 3,954,519 shares of the business services provider’s stock worth $873,276,000 after buying an additional 11,688 shares during the period. 80.40% of the stock is currently owned by institutional investors.

Key Stories Impacting Waste Management

Here are the key news stories impacting Waste Management this week:

• Positive Sentiment: WM reported adjusted earnings of $2.02 per share, above analysts’ estimates of approximately $1.98-$1.99 and up from $1.92 a year earlier. Waste Management Q2 Earnings Surpass Estimates
• Positive Sentiment: Revenue increased 4.0% year over year to $6.684 billion, while adjusted operating income rose to $1.290 billion and adjusted operating EBITDA increased to approximately $2.067 billion. These figures indicate continued operating growth and earnings leverage. WM Announces Second Quarter 2026 Earnings
• Positive Sentiment: The earnings beat was achieved despite revenue coming in modestly below consensus, suggesting margins and cost control helped support profitability. WM’s reported 31.90% return on equity also underscores its strong earnings generation, though leverage remains elevated.
• Positive Sentiment: Brokerages’ consensus price target is $256.74, above the stock’s recent trading level, providing a favorable analyst valuation signal. Waste Management Receives Consensus Target Price
• Negative Sentiment: WM’s updated 2026 revenue outlook of $26.3 billion-$26.5 billion has a midpoint slightly below the $26.5 billion consensus estimate. The absence of a clearly higher outlook could temper enthusiasm following the earnings beat.
• Neutral Sentiment: At a price-to-earnings ratio near 35, WM already carries a premium valuation. Investors will likely require sustained earnings growth and margin improvement to justify further gains.

Waste Management Company Profile

Waste Management, Inc (NYSE: WM) is a leading provider of integrated waste management and environmental services in North America. The company offers end-to-end solutions that span collection, transfer, disposal and recycling, along with landfill operations and related infrastructure. Headquartered in Houston, Texas, Waste Management serves a broad customer base that includes residential, commercial, industrial and municipal clients.

Core services include curbside and commercial waste collection, roll-off and temporary container services, materials recovery and recycling, and engineered landfill disposal.