WM Reports 6.3 Percent Revenue Growth in Q3
Pricing gains and yield growth offset volume declines for waste operators.
Updated on Oct. 28, 2026 in Corporate Finance
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WM reported 6.3 percent revenue growth for the third quarter of 2026, driven by core pricing increases despite a slight decline in collection volumes. The firm also reaffirmed its full-year 2026 financial guidance as it prepares for an executive leadership transition.
Why it matters
The company continues to lean on core pricing power to offset volume losses in residential and commercial collection. Operators should note this strategy as a way to maintain margin growth while intentionally shedding less profitable accounts.
WM reported 6.3 percent revenue growth for the third quarter, supported by 5.8 percent adjusted operating EBITDA growth. The firm generated $4.87 billion in net cash from operating activities during the first nine months of 2026.
The players
WM
A national waste management and environmental services firm focused on collection, disposal, and renewable energy.
John Morris
The incoming CEO set to take leadership of the organization in early 2027.
Jim Fish
The current CEO who will transition out of his leadership role in early 2027.
The details
Revenue gains stemmed primarily from 5.8 percent core pricing and 3.4 percent Collection and Disposal yield growth. These figures helped mask a 0.4 percent decline in collection volumes, which resulted from a deliberate strategy to reduce residential business and manage commercial account losses. Simultaneously, the company is expanding its alternative energy footprint, highlighted by a new renewable natural gas facility in New York.
Timeline
Q3 2026: WM reported 6.3 percent revenue growth.
First nine months of 2026: The company generated $4.87 billion in net cash.
Full year 2026: The company expects revenue up to $26.475 billion.
Early 2027: John Morris replaces Jim Fish as CEO.
Market Landscape
WM's results align with the broader industry trend of prioritizing core pricing yield over raw service volume to preserve profitability. This strategy mirrors sector-wide efforts to offload less profitable residential accounts while increasing commercial efficiency.
Operators should evaluate if their own pricing models are sufficient to absorb potential volume declines in lower-margin segments. Keep monitoring WM's capital allocation as they continue returning cash to shareholders while navigating an upcoming executive transition.
The takeaway
WM continues to demonstrate that aggressive core pricing can successfully mitigate volume declines in a competitive market. Operators should track how the firm balances these pricing moves with capital investment in new revenue streams like renewable natural gas.
What happens next
John Morris is scheduled to take over as CEO in early 2027, marking a significant leadership transition for the company.
Further reading
For broader trends in industry profitability, see the latest updates in Corporate Finance.
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Does consistent corporate revenue growth make you more confident in the nation's economic future?
