Waste Management, Inc. stock research
FY2025 Q4
Waste Management (WM) Gross Margin — Quarter Ended Dec 31, 2025
Revenue was lower than the prior quarter but higher than the same quarter last year. Gross profit remained stable versus the prior quarter and improved year over year, while cost of revenue decreased quarter over quarter and increased year over year, resulting in a gross margin that improved both sequentially and annually.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue was lower than the prior quarter but higher than the same quarter last year. Gross profit remained stable versus the prior quarter and improved year over year, while cost of revenue decreased quarter over quarter and increased year over year, resulting in a gross margin that improved both sequentially and annually.
- The strongest observable margin driver was gross profit holding steady quarter over quarter despite lower revenue, which, together with a reduction in cost of revenue, drove the sequential margin improvement.
- Compared with the immediately preceding quarter, gross margin was higher; compared with the same quarter one year earlier, gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.5%
Gross profit
$2.6B
Revenue
$6.3B
Cost of revenue
$3.7B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
+1.8 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $6.0B | $2.4B | $3.6B | 40.0% |
| Jun 30, 2025 | $6.4B | $2.6B | $3.8B | 40.3% |
| Sep 30, 2025 | $6.4B | $2.6B | $3.8B | 40.5% |
| Dec 31, 2025 | $6.3B | $2.6B | $3.7B | 41.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+1.0 pts
Year-over-year change
Dec 31, 2024
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver was gross profit holding steady quarter over quarter despite lower revenue, which, together with a reduction in cost of revenue, drove the sequential margin improvement.
Compared with the immediately preceding quarter, gross margin was higher; compared with the same quarter one year earlier, gross margin was also higher.
Monitor the trajectory of cost of revenue relative to revenue in future quarters, as its reduction was a key factor in the margin improvement.