Waste Management Inc (NYSE:WM) shares are trading lower on Thursday after the company posted fourth‑quarter results that came in just shy of Wall Street expectations.
Earnings Come In Just Below Expectations
The company reported earnings of $1.93 per share, versus the consensus estimate of $1.94. Even so, profits were up 13.5% from the $1.70 per share earned a year ago. Revenue for the quarter came in at $6.31 billion, slightly below the $6.39 billion analysts were looking for, but still up more than 7% from last year's $5.89 billion.
Waste Management also issued its full‑year 2026 revenue outlook of $26.43 billion to $26.63 billion, slightly below the Street's estimate of $26.66 billion.
Despite the headline misses, the company highlighted strong operational momentum. Total operating EBITDA rose 13.3% in 2025, and adjusted margins topped 30% for the first time. The Legacy Business delivered 8% EBITDA growth with a 90‑basis‑point margin expansion.
"2025 was a year of disciplined execution for WM," CEO Jim Fish said, noting that the company achieved record efficiency in operating expenses as a percentage of revenue. He added that Waste Management expects free cash flow to grow nearly 30% in 2026, supported by investments in recycling, renewable energy, fleet upgrades and its medical waste network. The company plans to return about $3.5 billion to shareholders next year through dividends and buybacks.
What Do Analysts Think?
Analysts have recently updated their ratings and price targets for Waste Management. Wells Fargo maintained an “Overweight” rating, raising the target from $238.00 to $246.00 on Jan. 23. Scotiabank downgraded the company to “Sector Perform” from “Sector Outperform” and lowered its target from $254.00 to $250.00 on Jan. 21. On Jan. 20, Barclays kept its “Overweight” rating, slightly decreasing its target from $266.00 to $265.00.
Citigroup maintained its “Buy” rating for Waste Management on Jan. 16, but reduced its target from $270.00 to $263.00. Meanwhile, UBS upgraded the company to “Buy” from “Neutral” on Jan. 9, significantly raising its target from $225.00 to $260.00. These mixed ratings and target changes reflect differing views on the company’s future performance.
WM Price Action: Waste Management shares were down 4.05% at $222.22 at the time of publication on Thursday, according to Benzinga Pro.
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